Food distribution businesses such as DoorDash appear as appealing companies to people from all parts of the nation, who wish to work as drivers for them. These companies have the attraction factor because those driver-partners have the option to establish their own delivery work schedule, have fast turnarounds for payment, among other things.
As per the information gathered by the online analytics platform ‘Second Measure’, there was a 24% year-over-year (YOY) growth to food delivery entities through March 2020. DoorDash is among the three best-known food delivery businesses in LA.
It was found that 58% of their customers ordered food only through DoorDash in the 2020 Q1. This is among the highest percentages of exclusive orders in the meal delivery segment.
As with any of their competitors, you can easily sign up as a delivery vehicle driver for DoorDash. When it comes to DoorDash, the things they require from driver candidates are as follows.
- They have to be aged at least 18 years
- They must possess an Android smartphone or iPhone
- They should own a car, motorbike, bicycle, or scooter (according to the market)
- They have to possess a driver’s license
- Their driving history should be clean
- There should be car insurance with them (when their vehicle is a car)
- They have to have a social security number (SSN)
- They must permit DoorDash to do a background verification
You may possess a vehicle and pay your insurance each month, but these alone do not necessarily qualify you for the driver’s post. Your insurance may suffice to commit yourself to the role of an independent contractor, but should a collision occur, you are likely to face its bad effects. This would especially be the case when your insurance coverage does not protect you from the collision-related losses.
Because it takes a further business or trade use related policy to work in this position, your insurance is highly unlikely to protect you from those. Delivery service businesses generally do not insure their independent contractor drivers, so you would experience the said effects in the case of a vehicular accident.
You are required to have an automobile insurance policy with coverage provisioned for the commercial utilization of a car, to do the job for DoorDash. The following factors increase the dangers of going by road for drivers, and therefore, there exist much higher insurance rates regarding vehicle use for business purposes.
- The rate at which one drives it
- The amount of time spent operating the vehicle
- Where they do it
- The distraction linked to monitoring the food order and tracking the navigation
Business- and trade-related-use policies are meant to protect you from the risks. Food delivery is a new service, so the insurance sector continues to adapt to everything new. Therefore, you must contact your present insurer to know your possible options concerning coverage when thinking about serving as the contractor for DoorDash.
Albeit you plan on doing it part-time, working in this capacity for DoorDash means that you are doing a commercial thing. So, in the case of a collision, your insurance would potentially not cover your losses.
DoorDash makes it necessary for these contractors to have the following.
- Insurance of the forms and with the coverage amounts that conform to legislation, including an automobile insurance policy.
It is worth noting that should the professionals lack their insurance, then the company coverage is unlikely to be applicable.
This company may maintain excess automobile insurance for their drivers, but this applies to just bodily injury or property damage arising from an accident to any third-party. Should an accident happen, the primary insurance coverage would be the driver’s own policy provision. The concerned damages going above the coverage provisioned in that policy would mean that the DoorDash contingent liability insurance coverage would kick in. Moreover, this coverage worth $1 million would be applicable only if the product to be transported to the customer was with the driver.
Every US ‘Dasher’, as DoorDash addresses drivers, can now qualify for the company occupational accident insurance for free, and it comes with the following coverage provisions.
- Medical expenses: As far as $1,000,000 without any copay or deductible amount for the policyholder
- Survivors payments: As far as $150,000 just for qualified dependents
- Disability payments: As far as $500 per week