Coronavirus, or COVID-19, has impacted our lives in many ways that may result in permanent change. Many people are still reluctant to recommence their pre-COVID-19 life, or have come to enjoy the convenience of the many delivery services that popped up while we all have had to stay at home. Thus, grocery and restaurant food delivery remain robust. Here is where a coverage gap in insurance may appear. Many personal auto insurers explicitly exclude accidents arising from this activity.
For example, Nationwide Insurance’s personal auto policy (PAP) does not cover losses that occur while the vehicle is, “being used on a regular basis for retail or wholesale delivery, including but not limited to pizza, magazine, newspaper, and mail delivery.” Progressive Insurance’s PAP specifically excludes any losses arising from the “delivery of magazines, newspapers, food, or any other product.”
Most auto insurance policies exclude the use of an auto as a “public or livery conveyance.” However, most courts rule that this exclusion pertains chiefly to an insured who offers the livery service to the general public and not through a private employer. Of course, there is no consensus on this point.
If you are using or considering using your personal vehicle for any sort of delivery, check with us to see if you have coverage, or to locate a policy that will provide it. Don’t hesitate to contact us if you have any questions!