Many people are looking for ways to earn a bit of extra money. Providing a service to other people is one way to do this. Food delivery drivers are one example of this. Grocery stores now offer this service. Companies like DoorDash and GrubHub connect independent contractors to customers who want food delivered to their door. These businesses can be lucrative. Yet, you also have to protect yourself from risks. What type of business insurance applies?
Why Do You Need Insurance? 
Business insurance is beneficial to all companies. No matter the size of the company, there are risks to operating your business.
An accident can occur. A third party may suffer losses. You may suffer damage to your vehicle. Business insurance helps to cover these risks. As an independent contractor, work closely with your agent to understand what type of coverage applies in your situation. For food delivery drivers, there are a few things to consider.
Start with BOP
A Business Owners Policy, or BOP, is a type of insurance coverage applicable to most small businesses. It may not apply in some situations. However, this coverage protects your property (such as the place you work out of) as well as provides liability insurance. It can help to minimize risks to you should you face a claim from a customer. For example, the customer may blame you if they receive food that they are allergic to. This is rare, but even a delivery driver might come under scrutiny from a dissatisfied client.
Commercial Auto Insurance
Delivery drivers usually benefit from having a commercial auto insurance policy. Most personal auto policies do not cover those who drive for business purposes. However, as a delivery driver, you may find commercial auto insurance is quite affordable. It can meet all of your needs in terms of protecting your vehicle as well as protecting you from liability claims related to your driving.
Check with the Company, Too
Some larger companies offering these types of opportunities may provide support for you to obtain low-cost insurance for your business. They might even provide certain policies as supplements.
Others have specific requirements in place for obtaining such coverage. Learn what these companies require and offer before you begin providing this service. Calling your insurance agent is all it takes. Updating your policy may be easy to do. And, the coverage it offers can be critically important.
When it comes to business insurance, be sure to focus on these services especially as your business grows. If you are providing these services, you need coverage to protect you. Treat these tasks as a true business.