Sean, that hardworking college kid, has been delivering your food to your customers for two years. You like him a lot. So do your customers.
Did you know that if Sean’s in a car accident while he’s delivering food for you and he gets sued, your business liability insurance won’t cover him? His personal auto insurance likely won’t either. Where does that leave Sean? Where does that leave you?
The Trouble with Insuring Delivery Drivers
Only a handful of insurers provide coverage for restaurants and other businesses that use their own employees or third-party drivers to make deliveries using their personal vehicles. The trouble is that underwriters struggle with how to quantify the risks for what is known as “hired non-owned autos.”
For example, insurers don’t know the driving habits of those making the deliveries. They don’t know how many miles the delivery agents drive in the performance of their jobs—or even whether they stay within the designated delivery zones. If insurers base annual premiums on the industry’s worst performers, coverage is difficult for businesses to afford.
A new type of insurance solves these issues. It’s called RoadPilot®.
Insurance Based on Delivery Miles Driven and Driver Performance
The RoadPilot program combines two elements:
- Technology that captures delivery miles driven and quantifies driver performance
- Liability insurance provided by an A-VII rated carrier that is billed monthly based on actual delivery miles and driver history
It works like this. The delivery driver downloads the RoadPilot app from the Apple Store or Google Play. The app detects motion and records information about each delivery trip, including duration, distance, average speed, route taken, and whether the delivery vehicle stays within the specified delivery area. The driver can use the app to find the delivery location, see traffic alerts based on geolocation, log trip details and even file an accident report.
During each delivery, the RoadPilot app also monitors driver performance. It senses and records unsafe behaviors, such as speeding, hard braking, unsafe maneuvering, rapid acceleration and phone usage while driving (distracted driving). Drivers receive scores for each trip, which they can see using the app.
Business owners, operations managers and fleet owners also can see what’s happening in the field. An online analytics dashboard, available 24/7, lets them view trip details and driver performance scores for each driver, as well as aggregated information for store locations and the entire account covered by the insurance policy. They can use the portal to send important messages and updates to the entire team or specific drivers.
The insurance carrier also can see this information. The insurer uses actual miles and actual driver performance as the basis for premium pricing. The business is billed every 30 days—not annually—for the coverage it needs and uses.
Cultivating a Culture of Safety
Insurance is important, but so is accident prevention. While bad weather conditions, poorly designed traffic flows and equipment failures all can contribute to auto accidents, more often the primary cause is poor driver behavior—distracted driving, in particular.
Using data collected by the RoadPilot app, businesses now have the information they need to identify and encourage good driver behavior and address poor behavior. Managers can even gamify the process, letting drivers monitor their progress (driver scores) against one another, with the best performers earning special recognition, gift cards or other benefits.
Contact RoadPilot today to learn if your business qualifies for coverage and to see a demonstration of the technology.
The above information does not constitute advice. Always contact your insurance broker or trusted advisor for insurance-related questions.