I opened my trunk to the smell of $400 worth of ruined sushi scattered across the liner after a minor fender bender on 4th Street. The car damage was minor, but the catering order was destroyed, and when I asked my adjuster who pays for the lost product, the silence was deafening. I ended up paying that restaurant out of pocket because I didn’t understand the difference between “Vehicle Coverage” and “Cargo Coverage.”
Key Takeaways
- Your Car ≠ Your Cargo: Standard rideshare endorsements fix your bumper, not the burritos in the back seat.
- The “Care, Custody, and Control” Exclusion: Almost all personal policies exclude coverage for property you are being paid to transport.
- Commercial Policies are the Only Fix: If you haul high-value catering (over $200), a standard endorsement is not enough.
- Deductibles Kill Small Claims: Even if you had coverage, a $500 deductible renders a $100 ruined meal claim useless.
The “Why”: The Cargo Trap
We assume “Full Coverage” means everything in the car is safe. It isn’t.
In 2026, personal auto policies—even with the Rideshare Endorsement added—contain a clause excluding “property in your care, custody, and control for business purposes.” Insurance companies treat the food exactly like they treat a paying passenger: they cover their medical bills (liability), but they won’t pay you if the passenger’s luggage gets smashed, and they certainly won’t pay for the spilled soup.
Unless you have a specific Commercial Auto Policy or Inland Marine rider, you are self-insuring every bag of food you pick up.
[IMAGE: Photo of a standard Declarations page highlighting the “Property Damage” exclusion clause]
The Investigation: I Tested the Major Players
I posed as a high-volume catering driver and called agents from the big carriers to see if any of their rideshare add-ons would cover a $500 ruined catering order.
1. State Farm (Rideshare Driver Coverage)
I spoke with a tenured agent who checked the specific endorsement code (usually 6016 or similar depending on the state).
- The Verdict: Strict denial for cargo.
- My Analysis: State Farm is great for fixing your car in Period 1, but the agent was clear: “We insure the steel, not the meal.” If the food is ruined, that’s on you.
2. Progressive (Rideshare Endorsement)
Progressive is known for being gig-friendly, so I pushed hard on their “Gap” coverage.
- The Verdict: Same result.
- My Analysis: Their endorsement fills the liability gap so you don’t get sued if you hit someone, but it offers zero coverage for commercial goods inside the vehicle.
3. BiBerk / Next Insurance (Commercial Specialists)
I finally went outside the standard carriers and quoted a “Hired and Non-Owned” or specific Commercial Auto policy.
- The Verdict: They covered it.
- My Analysis: This is the only way to get paid for ruined goods. However, the premium was nearly 30% higher than a personal policy.
Comparison Table: Protecting the Goods
| Carrier | Policy Type | Covers Car Damage? | Covers Food/Cargo? | Est. Monthly Cost |
| State Farm | Personal + Endorsement | Yes | NO | $120 |
| Progressive | Personal + Endorsement | Yes | NO | $135 |
| Commercial (BiBerk/Next) | Commercial Auto | Yes | YES (Up to limit) | $190 |
| Gig App Policy | Contingent | Yes (High Deductible) | NO | $0 (Included) |
Step-by-Step Action Plan
- Assess Your Risk: If you deliver $15 McDonald’s orders, do nothing. If you deliver $500 catering orders, you have a problem.
- Read the “Exclusions” Section: Look for “Business Property” or “Cargo.” If you see it, you are liable for the food.
- Buy a Cooler/Bin: Since insurance won’t pay, prevention is your only option. Use hard-sided coolers to protect food during hard braking.
- Check the App’s Terms: Some high-end catering apps (like ezCater or specialized services) provide limited cargo insurance. Read their contract. If they don’t, you are the insurance.
FAQ
If the food is ruined, does the app deduct it from my pay?
In 2026, most apps won’t deduct it from your bank account, but they will issue a “Contract Violation.” Too many of these and the AI deactivates your account.
Can I claim ruined food on my renters insurance?
No. Renters insurance excludes “Business Property” once it is being used for commercial gain.
Does a commercial policy cover my personal groceries?
Yes. Commercial policies generally cover personal use of the vehicle, but always double-check the “Non-Business Use” clause.