Food service delivery apps like Uber Eats, Skip the Dishes, and Doordash is amongst the most used apps on the average Ontarian’s smartphone. In Ontario’s “gig” economy, earning extra money as a food delivery driver has become a very popular job for individuals looking for the flexibility of making their own schedule.
In January, a Milton man employed as a delivery driver was involved in a motor vehicle collision in which a stolen car crashed into him, and fled the scene. The man was not making a delivery at the time of the accident. The man’s car was undrivable and he called the police.
The Milton man reported the accident to his insurance company and filed a claim for $15,000.00. The insurer asked the man if he had ever used his car to earn income, to which he replied that he drove for Skip the Dishes. The insurance company advised that driving your vehicle for a food delivery service is deemed a “material change in risk”, and consequently denied his claim.
A “material change in risk” is defined as a substantial and continuing change to your situation that affects and increases the risk involved to insure your property. To ensure that you are protected, it is important to report accurately to your insurance company. As an insured, you should answer every question on an insurance application and advise your insurance provider of any change in circumstances.
According to the Insurance Bureau of Canada, individuals that use their vehicle to deliver food must be aware that they are considered to have a business-use vehicle or partial business-use vehicle. These individuals require proper, additional coverage – coverage that not all delivery services provide to their drivers. Further, those companies that do provide this additional insurance only cover accidents that occur while a driver is on delivery.
Upon this news story breaking, Skip the Dishes has shared that the Milton man’s damage claim was subsequently approved. However, this is likely not a precedent-setting instance and delivery drivers should be diligent in reviewing the requirements of employment, the insurance coverage provided to drivers, and the policy particulars of their personal insurance. Drivers should be cautioned that filing a claim for an accident that was caused while acting as a delivery driver can result in policy cancellation where a driver has not informed their insurance company that they do so.
If you or a loved one have been involved in a motor vehicle collision, contact us at JEWELL RADIMISIS JORGE LLP and a member of our team will be happy to assist you.