Grocery Delivery Insurance


There is a rising demand for grocery delivery insurance. With more consumers buying their groceries online, there’s a growing opportunity for on-demand grocery delivery services such as FreshDirect, Peapod, UberEats, and Amazon. However, there is some risk associated with food delivery, such as food contamination, liability in the event of an accident while delivering the groceries, and even the driver causing harm to the consumer.

To avoid some of these risks, groceries often impose certain requirements for third-party delivery providers, like the requirement to carry insurance coverage naming the grocery store as an additionally insured party.

grocery delivery insurance

Insurance For Grocery Stores Include:

  • Conduct due diligence before choosing a third-party delivery service
  • Require compliance with industry standards for safe food handling
  • Include strong indemnification terms that shift the responsibility and blame to the third-party delivery service for any complaints or claims
  • Require proof of insurance by the third-party delivery service and for the drivers used
  • Require the use of tracking technology to establish the “chain of custody” in defending against some cases

Grocery Delivery Insurance

The right insurance agents can help you get adequate insurance protection to venture into the grocery-delivery business. One of the requirements for making on-demand grocery deliveries is getting commercial auto insurance. The problem with standard personal auto insurance policies is that they exclude the use of the vehicle as a conveyance or livery – hauling goods or people for a fee.

This means that if you deliver groceries in a personal vehicle with just personal auto insurance, and you’re involved in an accident, you will not be covered. That said, personal auto insurance may be a requirement to qualify for insurance coverage while you have a shipment – offered by the service (like Uber or Amazon).

To be on the safe side, you need to buy commercial auto insurance before you start making on-demand grocery deliveries. Although it will cost more than your standard personal auto policy, having a business or commercial auto insurance policy will give you sufficient coverage for the nature of the work.

We have specialized agents that will help you find the best solution for your insurance needs, offering customized coverage plans unique to your business. Our rates are very competitive. You may request a quote either by calling our office @ 818.465.7860 or by filling out our quote form.

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