Global re/insurance broker Marsh has announced the launch of Marsh deliveryPRO, a customisable insurance solution that enables US businesses to meet the increased demand for same-day delivery of their products more efficiently.
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, but current commercial auto liability insurance for such delivery can be difficult to secure and is often based on outdated models like prior year revenues, resulting in inefficient pricing.
To address these issues, Marsh has collaborated with AXA XL and mobility data and analytics company Arity to create a usage-based, price-by-mile insurance solution.
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, and premiums are based on the number of miles driven for the delivery.
“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,” said Robert Bauer, Head of Marsh’s US Sharing Economy and Mobility Practice.
“Even when the crisis is over, last-mile delivery will likely continue to grow. With Marsh deliveryPRO, businesses can access usage-based insurance, pay only for what they need, and meet the surge in demand for delivery.”
Chris Kopser, AXA XL President of Global Risk Management, also commented: “AXA XL is committed to providing tailored solutions that address emerging risks, particularly in the sharing economy and mobility space. Our relationship with technology innovators and strong distribution firms like Arity and Marsh respectively, empower us to help address the evolving needs of our clients.”
“Our expertise in mobility data analytics enables us to understand how someone behaves while behind the wheel, whether it’s for a delivery or personal use,” added Gary Hallgren, President of Arity. “This gives businesses greater control and the ability to work with and employ delivery drivers directly.”
“Arity is proud to play a part in providing groundbreaking solutions that allow businesses to quickly adapt and effectively manage their insurance costs while giving individual drivers protection when making deliveries with their vehicles.”
