Deliveroo spends £10m to equip 35,000 riders with free accident insurance
Riders in 12 countries will be automatically enrolled in the insurance package.
Deliveroo is spending £10 million to equip 35,000 riders with free accident insurance, but said further benefits risk classifying self-employed workers as staff.
Riders in 12 countries will be automatically enrolled in an insurance package that will cover them for up to £7,500 of medical expenses as well as up to 75% of average gross income if they are injured while working – at no cost to themselves.
It is being touted as an improvement on the exclusive accident and personal sickness and injury cover made available to its UK food delivery riders in December for £1.85 per week, and is expected to cost the company nearly £10 million at the outset.
Deliveroo said it would like to offer more benefits to drivers but risks being forced to count riders as staff rather than as self-employed workers.
Chief executive and founder Will Shu said, “We know riders value the flexibility of being able to fit their work around their life, but they also deserve security if they’re involved in an accident.”
He added, “We would like to go further, but are currently constrained by the law. Deliveroo will continue arguing for the law to be updated so on-demand companies can offer both flexibility and security.”
