Agile Underwriting Services is the security provider for a soon-to-be-launched product designed for the booming food delivery gig economy.

The pay-as-you-use cover will be available some time next month and is offered by UpCover, an authorised representative of Agile and an insurtech that took part in Agile’s incubator support program to nurture insurance-focused start-ups.

It will be the first time that Agile is underwriting a product for food delivery couriers working through platforms like Uber Eats and Deliveroo. The product provides cover for liability, accident and health as well as the principal equipment used, the bicycle or motorbike.

Head of Casualty Nathan Sommer says it is the right time to launch the product as demand for food delivery services has grown significantly since the economy went into lockdown in March.

“Food deliveries have actually 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 today. “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.

“I think it will absolutely take off very, very, quickly,” Mr Sommer said. “It will be a quick growing product because of the way we have designed the product. Its coverage, its pricing is second to none.

“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.”

According to UpCover, 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.

And the insurtech is aiming to cater to this segment of the market.

“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.