Food delivery insurance for e-bike riders

Food delivery services are blowing up all over the place in the United States, and e-bikes have become the favorite mode of transport for all delivery riders.

The blending of the speed of a motor vehicle with the convenience of a bicycle – in other words, an e-bike – allows for efficiency in traffic while negotiating the urban streets.

However, as more people rely on e-bikes, so too is the growing need for appropriate insurance coverage.

Crashes are real, and they happen all the time. Whether you ride a scooter or an e-bike, the risk of injury has been proven in the past.

For delivery riders, insurance is literally the thin line that separates them from a major financial loss; thus, understanding the risks and types of insurance is paramount.

Here is everything you need to know about food delivery insurance for e-bike riders.

Types of risks faced by e-bike delivery riders

E-bike delivery riders face a different set of risks that make them highly vulnerable to physical and financial damage.

Riders, who are under pressure to deliver within strict time limits, make their ways through busy streets, exposing them to collisions with vehicles, pedestrians, or other cyclists.

These injuries can lead to medical attention and loss of income while recovering from such injuries.

Another common problem is theft.

E-bikes are typically expensive, and many delivery riders either work in high-crime areas or have to leave their bikes unattended for brief periods at a time during deliveries; hence, they run a high risk of becoming victims of theft.

For a rider who uses his vehicle daily to go to work, repairing or replacing an e-bike which has been stolen or wrecked can be an enormous financial burden.

Besides this, one runs the risk of liability claims in case a rider causes injury to a third party or damages any property while working.

If a liability coverage has not been bought, the rider may need to personally pay for the medical costs or repairs.

Lastly, there is a risk that riders face in terms of loss of earnings when injured or if a bicycle is stolen and they are unable to work.

This is an added risk to independent contractors who have no sick time or other benefits.

Types of insurance coverage available

Several types of insurance coverage can help mitigate these risks for e-bike delivery riders.

• One of the most important types is personal injury protection. In the event of an accident, this kind of insurance pays for medical expenses, while some policies pay lost wages during periods when, due to injuries, one cannot work.

• E-bike theft or damage protection is available for the rider who would like to insure their vehicle. This insurance helps pay the cost of repair or replacement in case of the e-bike being stolen or damaged, which could save a rider from some pretty pricey out-of-pocket expenses since e-bikes are so expensive.

• General liability insurance protects riders against allegations of third-party damages or injuries. Liability insurance would cover legal fees and settlements or judgments against them if a delivery rider, while trying to make a delivery, causes injury to someone or damages someone's property. In case the rider doesn't have the coverage, he may be sued personally and ordered to pay compensatory damages.

Delivery riders may also want to consider workers' compensation insurance or loss of income coverage, which helps replace lost earnings if the rider is unable to work due to injury.

Though this type of coverage is more common for employees, independent contractors may be in a position to buy similar coverage from private insurers.

How insurance companies view e-bike riders

Insurance companies are increasingly recognizing the peculiar risks borne by e-bike delivery riders, with some now starting to offer policies tailored for the growing army of workers.

But riders may find that they are faced with exclusions or limitations when trying to get cover under traditional policies.

For example, conventional home or auto insurance policies may not extend coverage for an e-bike when put to commercial use. Riders will have to make certain their policy explicitly lists cover for food delivery on an e-bike.

The premium rate can, however, vary for e-bike riders, since there are many factors that determine its rate, such as:

• The location of the rider

• Value of the e-bike

• The extent of the coverage needed

In highly criminalized places where e-bike theft is rampant, riders are expected to pay more for premium theft protection.

Riders who work on busy streets for a longer period of time are considered riskier with regard to accidents, hence increasing the insurance cost.

Insurance requirements for food delivery platforms

Many of the food delivery platforms, such as DoorDash, UberEats, and Grubhub, have special insurance requirements for their riders.

Coupled with the coverage that some of these platforms could provide for their workers, such coverage also often has limitations.

An example is when DoorDash provides occupational accident insurance to cover injuries sustained during a job but excludes general liability or theft protection.

Some platforms, like UberEats, require the riders to have their own commercial insurance policies in case they use an e-bike for deliveries.

This is an added cost to the rider, who besides paying insurance must also pay for service and maintenance of their e-bike.

Each of the varying platforms entails different requirements, so it is very critical that the riders carefully review their agreement terms and ensure they meet all the insurance obligations prior to their start date of work.

Insurance companies may collaborate with delivery platforms to provide more discounted or specialized insurance plans for their riders.

Riders should take advantage of the insurance delivery companies offer when available. These are generally cheaper compared to buying a policy from a third-party provider.

The cost of being uninsured

Operating without insurance means that a delivery rider could face great financial risks. In cases of accidents, unless the rider has personal injury protection,they are at risk of expensive medical bills that they might not afford.

Even minor accidents could lead to hundreds or even thousands of dollars in medical expenses, sufficient enough to greatly overwhelm any rider's income derived from food deliveries.

We’ve mentioned that theft is another big concern. In case that an uninsured rider has his e-bike stolen, there is a chance he might not have the money to buy a new one in place of the stolen one and thus may be out of work.

Because e-bikes are very expensive, with some going into the thousands of dollars, theft's financial impact can be devastating to riders whose livelihood depends upon their e-bikes.

Perhaps the most unpredictable, financially devastating risk for uninsured riders is a liability claim.

A rider who causes an accident resulting in the injury of another person or the damage of someone's property could be sued for damages.

Legal fees and settlements from a liability claim can easily exceed the income that a rider receives from food delivery, leaving him or her with a huge dent.

How to choose the right insurance plan

To choose the right insurance, riders should give much thought to their needs and risks.

First, a rider should choose a type (or types) of coverage which are meaningful for their situation.

Comparing premium costs from different insurance providers is also effective in providing the most economical protection.

Food delivery riders should look out for insurance providers specializing in gig workers or delivery riders policies.

Such a provider will more likely provide a policy answering the peculiar needs of the e-bike riders and even make sure there is flexibility in payments or discounted rates.

In addition, other factors we’ve mentioned also determine how much coverage a person needs to buy.

It would be wise of riders to consult with an insurance agent or broker who is very familiar with the risks associated with e-bike delivery work.

A knowledgeable agent can help riders sort through the complexities of insurance policies and make sure that they are fully covered in the event of an accident, theft, or liability claim.

• Pick the right retailer

Lastly, when renting an e-bike, you should choose a retailer that has proper customer plans that include some type of insurance.

Many companies that sell or rent e-bikes don’t care about their customer needs. Their only concern is how to sell their products and earn money.

You must look for retailers that think about this aspect.

Some retailers partner with insurance companies, which in turn provide pre-packaged insurance options.

This plan is often much cheaper because it is negotiated in bulk, offering the riders a discounted rate in comparison to buying a stand-alone insurance policy.

Including insurance in a rental agreement for a rental company makes life much easier for the delivery riders.

They are instantly covered for liability, theft, or damage throughout the rental period, which allows them to more easily fulfill platform demands without seeking external insurance on their own.

Besides that, e-bike retail and rent companies can include maintenance and protection plans beyond basic insurance. These coverages typically include protection in case of accidents and thefts.

For example, Whizz offers an All-in Plan, which includes coverage of maintenance cost, and a significant financial protection in case of thefts.

With it, you can ride with ease knowing you have little to worry about if something goes wrong.

Ride safely with Whizz

Whizz is one of the few e-bike retailers that manufactures and sells bikes with delivery riders in mind.

All of our bikes are adjusted to the specific needs of food delivery riders, so they can have reliable products that help them make a living.

This includes food delivery insurance for e-bike riders and protection plans that reduce the responsibility of riders in case of misfortune.

Accidents can happen to anyone. It’s important to do all you can to stay safe in such situations.

With Whizz, you can not only enjoy the best e-bikes for delivery riders on the market, but also stay safe in a busy, urban area.

Not only that, but if you use the code “WOW”, you’ll get a $20 discount on the first month, which will greatly reduce your expenses when you’re starting out as a delivery rider.

Stay safe on the road and ride with Whizz.