Marsh, the world’s leading insurance broker and risk advisor, has launched Marsh deliveryPRO, a customizable insurance product designed to make it more efficient for U.S. businesses to meet the increased demand for same-day delivery of their products.
Many grocers, delivery network companies, retailers, restaurants, and other businesses are using individual drivers as employees or in a “gig” independent contractor capacity to meet the surge in demand for delivery during the COVID-19 pandemic. In these cases, the drivers’ own vehicle is used. Current commercial auto liability insurance for such delivery can be difficult to secure and is often based on outdated models like prior year revenues, resulting in inefficient pricing.
Sponsored by Philadelphia Insurance Companies
According to Robert Bauer, head of Marsh’s US Sharing Economy and Mobility Practice, many businesses have had to ramp up their existing delivery services or convert from in-person sales to on-demand deliveries overnight as a result of the global pandemic.
Marsh has collaborated with AXA XL and mobility data and analytics company Arity to create Marsh deliveryPRO, a usage-based, price-by-mile insurance product that allows businesses to pay only for the coverage they need.
With deliveryPRO, Marsh clients can purchase a minimum of $500,000 in exclusive third-party bodily injury and property damage auto liability capacity from AXA XL in excess of a minimum $500,000 self-insured retention for their hired and non-owned delivery exposures.
The policy acts as primary auto coverage when the driver is on an active delivery, as tracked by the deliveryPRO platform powered by Arity or other existing technology. Premiums are based on the number of miles driven for the delivery, allowing insurance costs to scale with a business’ growth. Pay-per-claim third-party claims administration services and claims consulting also are available.
AXA XL’s Global Risk Management team works collaboratively to build risk management programs, including general liability, U.S. workers compensation and commercial auto, for large U.S. and Canadian-based domestic and multinational companies.
Source Insurance Journal
