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Grubhub Driver Insurance Requirements

What Are the Grubhub Driver Insurance Requirements?

The convenience of having food from your favorite restaurants delivered right to your door has become somewhat of a habit in Los Angeles — especially due to the pandemic. Going hand-in-hand with this is the demand increase for delivery drivers for several food delivery service apps.

Pedestrian Deaths in Los Angeles

According to data collected by Second Measure, meal delivery services saw year-over-year growth of 20 percent collectively through the end of June 2021. Grubhub and its subsidiaries, including Seamless and Eat24, took in 28 percent of U.S. consumers’ meal delivery sales in March 2020.

Grubhub is a popular food delivery service that has successfully attracted a substantial amount of customers compared to other food delivery companies. Within the first 10 weeks of 2021, 17 percent of users ordered food from Grubhub at least once a week. Furthermore, more than 2 percent of users placed food orders 3 or more times a week.

If you decide to start working for a food delivery service company, such as Grubhub, it is crucial to understand that your personal insurance won’t suffice in the event of an accident. Unfortunately, most companies allow you to sign up to drive for them with just your personal insurance, yet fail to inform hopeful drivers that they won’t be liable for damages in case of an accident.

Since doing these types of jobs requires an additional commercial or business-use policy, your personal insurance most likely won’t cover any damages. And since these companies don’t usually cover their independent contractors, you’ll end up with the short end of the stick.

In order to work for food delivery companies, drivers need a personal auto insurance policy that covers the commercial use of a car — no matter if you perform deliveries part time or full time. The rates for business use of a car are significantly higher than the ones for personal use, and that is because the risks of being on the road increases due to:

  • The frequency of driving
  • The time spent driving
  • Where one drives
  • The distraction issues related to keeping an eye on the order and the navigation

Commercial and business-use policies are designed to cover the risks when you use your personal car for commercial uses. Food delivery services are still a novelty, and the insurance industry is still adapting to the changes. That’s why it’s very important to check with your current insurance carrier on what your options are in terms of coverage if you’re considering working as an independent contractor for food delivery services.

Grubhub Insurance Policy 

The Grubhub website is vague, only stating that you need auto insurance and a driver’s license to work with them. As opposed to companies, like Doordash and Postmates, Grubhub doesn’t provide any kind of liability insurance to its drivers at all. This means that if you drive for Grubhub and get into an accident, no matter the circumstances, you are 100 percent liable for all damages. That’s why it’s of the utmost importance to have the correct insurance coverage when doing deliveries for Grubhub.

Let’s consider a real-life example: Last year, a woman working part time as a driver for Grubhub in Fort Collins got T-boned as she was driving a $10 order of mac and cheese to a customer. Because of the accident, she received a ticket for not yielding the right-of-way while trying to make a left turn and her 2007 Jeep Cherokee was put out of commission. She had comprehensive coverage, however, her insurance was not able to compensate for any damages since the collision took place while she was working.

Moreover, she also owed the other driver compensation for damages caused by the accident. After restitution, court fees, and paying off her totaled Jeep, the at-fault Grubhub driver calculated an estimate of $60,000 worth of money she owed. Since she does not have enough to pay off her expenses, she will most likely have to file for bankruptcy.

Since the woman was a food delivery driver, which is considered as an independent contractor, she was required to add a ride-share endorsement to her policy in order for her to receive compensation for damages. However, she did not have that, thus her insurance was not liable.

Per their terms of use: “In no event shall Grubhub be liable to you for any indirect, special, incidental, punitive, exemplary, or consequential damages, or any loss or damages whatsoever (including personal injury…), even if Grubhub has been previously advised of the possibility of such damages, arising out of a warranty, contract, negligence, tort, or any other action that in any manner arises out of or in connection with the use of, inability to use, performance of, or services provided on or through the platform or by Grubhub.”

Yes, business-use add-ons and commercial insurance can be expensive. But if companies, such as Grubhub, aren’t going to look after its drivers, it is essential that food delivery drivers ensure that they’re covered properly in case of an accident. Injuries and property damages resulting from car accidents can easily rack up, and you don’t want to end up having to cover it all on your own just because you weren’t properly informed about the insurance you needed while delivering food for Grubhub.

West Coast Trial Lawyers Is Here to Help

If you are a victim of a food delivery accident, West Coast Trial Lawyers has experienced personal injury attorneys that will work tirelessly to ensure that you get the maximum compensation you deserve for your losses, which includes medical bills, property damage, lost wages, and more.

Call us today at (213) 927-3700 or email [email protected] to schedule a free consultation with our knowledgeable, caring, and compassionate legal team.