How has the gig economy revolutionised courier insurance?
There is little doubt that the offer insurance companies provide to couriers has seen great changes in recent times. This is mainly down to the so-called ‘Gig’ economy which many couriers are employed in now. This way of working sees couriers picking up work when they can and often using their own vehicles to complete it. Compared to a salaried employee using a company vehicle to deliver goods, this is quite a change.
Why have insurance companies needed to adapt?
The issue that this way of working throws up is the insurance cover provided in case of an accident when making a delivery. Usually, the business insurance would provide the cover if a courier were involved in a third-party accident for example. However, for workers in the Gig economy using their own vehicle, this would not happen. They would have to rely on any personal insurance they took out which may not cover them for accidents when working.
New insurance policies lead the way
To solve this riddle, new insurance firms like Zego have sprung up. Zego allows couriers to apply for third-party liability insurance with them so they are covered while working. They allow couriers to pay only when they work via an app that is activated to provide cover when needed. This is great news for couriers as it means they only pay for what they use.
Companies like Uber have also followed suit to give their US couriers access to more suitable insurance for example. They have teamed up with insurance company Aon to give their US couriers cover from around $0.04 for each mile travelled. Where this is really clever is that Uber raised their rate of pay by the same amount, in essence giving this cover for free to couriers. A similar stance was taken in Europe for couriers working for UberEats.
Changing times for courier insurance
What this does make clear is that courier insurance is now more available and specialised than ever to those who need it. The clever insurance companies will be the ones who keep up with this change and react accordingly to meet it.
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