As the long-term implications of COVID-19 come into view, businesses are starting to think strategically about how to reach their customers during what could be a substantial period of social distancing. As one savvy business owner told us recently, “If I can’t get people to come to my business because of the coronavirus, I’ll take my business to them.”
A delivery service is certainly something to consider, at least for businesses with goods and services that can be delivered directly to the consumer. First, it’s important to understand the risks involved and determine if your business has the right insurance with enough coverage to support your new service and distribution plan.
Most insurance carriers are willing to provide coverage under business auto, workers’ comp, and commercial umbrella policies provided:
- You are already a customer
- The delivery service is short-term in nature (i.e. during the COVID-19 crisis)
- Proper steps are taken to ensure delivery drivers have good driver safety records, including:
- Valid driver’s license and minimum of five years driving experience
- Clean motor vehicle record (MVR) for past five years (no major accidents, citations, etc.)
Check with your Sentinel broker before allowing an employee to use their personal vehicle to deliver goods or services. Personal auto policies almost always carry exclusions for business use, leaving your employee and your company exposed in the event of an accident or injury.
But there’s good news, here, too. Some carriers are at least willing to talk about coverage alternatives and addendums in the personal auto space. Your Sentinel broker can help review personal auto policies with regard to permitted uses, and can negotiate on your behalf with carriers for exceptions and special uses during the crisis.