FS101: Minimum On-Demand Delivery Insurance Requirements
COO & Co-Founder
COO & Co-Founder
Update: We’ve released a new whitepaper examining the Sharing Economy industry. We dive into the insurance landscape, legal climate and how to approach risk management for companies in this sector. You can download the report here!
We work with no shortage of on-demand companies operating in the ride share, car share, or delivery space. Think companies like Uber, Postmates, Seamless, and countless others. These startups have a very acute pain point when it comes to getting auto insurance because they need a very specific brand of auto insurance called hired / non-owned auto (“HNOA”) insurance. HNOA insures companies for liability arising from the operation of vehicles that are not actually owned by the company, but used for company business. On-demand companies are in a particularly sticky situation when it comes to getting HNOA because they have an army of independent contractors operating the non-owned vehicles. As you might imagine, that’s a huge headache for underwriters. There is a lot of risk involved.
While this post won’t talk about the actual process of getting HNOA for your on-demand company (you can read about that here), it will talk about how to set up your company to secure HNOA coverage when you’re ready.
To be clear, this area is never black and white and many factors go into underwriting these policies. However, we have plenty of data points from negotiating the underwriting dozens of them, so we know you’ll be setting yourself up for success if you follow these minimum on-demand delivery insurance requirements when ramping up your company:
Vehicles & Operation
Miscellaneous / Final Notes
That’s the basic list! Reach out to us if you have questions and we’re here to help you get your on-demand company on the road.
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