A pay-as-you-go insurance product designed for the booming food delivery gig economy will be launched this month, security provider Agile Underwriting Services has announced.

The product is offered by UpCover, an authorised representative of Agile and insurtech that took part in Agile’s incubator program to nurture insurance-focused start-ups.

UpCover’s website says the policy provides cover for trips, slips and injuries while doing deliveries; weekly income payment if an insured is injured and unable to work; any costs incurred in repairing or replacing a bicycle or e-bike; and accidents that might have hurt a third party or damaged their property while an insured was at work.

The product marks a first for Agile in the food delivery gig economy. Head of Casualty Nathan Sommer says it is the right time to launch the product as the industry has grown significantly since March, when lockdown measures to curb the spread of the coronavirus were imposed.

“Food deliveries have really taken quite a leap in this current environment where people haven’t been able to go to restaurants for dinner, they haven’t been able to go to the pubs,” he told insuranceNEWS.com.au. “So food delivery is increasingly needed.”

He says the way the product has been designed sets it apart from rival offerings, and will give it the upper hand in the market.

“The UpCover program is the first that we have launched from a pay-as-you-go facility, so it allows the gig economy to be able to renew their policy every month and tailor it as and when they use as opposed to the traditional annual insurance policy.”

UpCover says there is a gap in coverage for gig economy workers like food delivery couriers. As they are usually sub-contractors, they often do not have access to the same workplace benefits enjoyed by full-time employees.

“The gig economy is definitely here to stay and it’s inevitable that people want to protect their source of income and their time, and have the kind of freedom they would not have had if they were working for one person throughout their life,” co-founder Anish Sinha said.