Marsh, AXA XL launch insurance product for delivery drivers

Marsh, AXA XL launch insurance product for delivery drivers | Insurance Business

Marsh, AXA XL launch insurance product for delivery drivers

Global insurance broker and risk advisor Marsh has announced the launch of Marsh deliveryPRO, an insurance product to help US businesses meet the increased demand for same-day delivery more efficiently.

“Many grocers, delivery network companies, retailers, restaurants, and other businesses are using individual drivers as employees in a ‘gig’ independent contractor capacity to meet the surge in demand for deliveries during the COVID-19 pandemic,” Marsh said. “In these cases, the driver’s own vehicle is used. Current commercial auto liability insurance for such deliveries can be difficult to secure and is often based on outdated models like prior year revenues, resulting in inefficient pricing.”

Marsh deliveryPRO, created in collaboration with AXA XL and mobility data and analytics company Arity, is a usage-based, price-by-mile product that allows businesses to pay for only the coverage they need.

Under the program, 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, Marsh said. The policy acts as primary auto coverage when the driver is on an active delivery. Premiums are based on the number of miles driven for the delivery. Pay-per-claim third-party claims administration services and claims consulting are also available, Marsh said.

“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. “With Marsh deliveryPRO, businesses can access usage-based insurance, pay only for what they need, and meet the surge in demand for delivery.”

“AXA XL is committed to providing tailored solutions that address emerging risks, particularly in the sharing economy and mobility space,” said Chris Kopser, president of global risk management for AXA XL. “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.”