When you hire someone to run errands—picking up groceries, dropping off dry cleaning, paying bills in person—you're trusting them with access to your home, car, or payment information. Understanding what insurance coverage protects you (and them) helps you hire with confidence and avoid costly surprises.
Why Insurance Matters for Errand Services
Errand runners handle your money, drive to multiple locations, and sometimes enter your home. If something goes wrong—a package gets lost, your car is damaged during a delivery run, or someone gets injured on your property—you need to know who pays. Most homeowner's insurance policies don't cover damage caused by hired service workers, and many errand runners operate as independent contractors without formal business insurance. That gap is where problems start.
Types of Insurance to Look For
Commercial General Liability (CGL)
This is the baseline. It covers bodily injury and property damage caused by the errand runner's work—for example, if they accidentally break your vase while in your home or accidentally hit another car while driving to the store on your behalf. Typical coverage ranges from $300,000 to $1 million in liability limits. Ask potential errand runners if they carry this; reputable ones should have a certificate of insurance they can email you.
Commercial Auto Insurance
If the errand runner uses their own vehicle for pickups and deliveries, they need commercial auto coverage, not just personal auto insurance. Personal policies often exclude business use, meaning you could be uninsured if an accident happens during an errand run. Verify they have this before hiring, especially if they're managing your groceries or handling time-sensitive deliveries.
Workers' Compensation Insurance (if applicable)
If an errand service employs staff rather than operating solo, they should carry workers' comp. This protects their employees if injured on the job and also protects you from liability claims. Check whether they're a solo operator or run a small team—the answer affects what insurance they need.
What You Should Ask Before Hiring
Don't assume coverage exists. When comparing errand services on platforms like Mercoly, where you can find and evaluate trusted local providers, or when contacting runners directly, ask these specific questions:
- "Do you carry commercial liability insurance? Can you provide a current certificate?"
- "What's your liability limit?"
- "If you use your vehicle, do you have commercial auto insurance?"
- "What's covered if something gets lost or damaged during the errand?"
- "Do you carry any bonding?" (Bonding protects you financially if they steal or mishandle funds.)
Prices vary widely—solo errand runners might charge $20–$40 per hour, while established services charge $30–$60+. Don't automatically choose the cheapest option; someone quoting half the market rate might also be cutting corners on insurance.
Red Flags and Protection Steps
Watch for these warning signs:
- Runner has no insurance and says "it's never been a problem"
- They can't produce proof of coverage when asked
- They refuse background checks or references
- They want cash-only payments with no receipt
- Their pricing is drastically lower than local competitors
Protect yourself:
- Get it in writing. Use a simple agreement stating what services you're buying, what the runner is responsible for, and how disputes are handled. Screenshot or photograph any promises made over text.
- Document condition before and after. Take photos of items the errand runner will handle or areas they'll access.
- Use traceable payment methods. Venmo, credit card, or check—never just cash. You need a record.
- Start with low-stakes errands. Before trusting someone with your car keys or large cash amounts, test them with a simple pickup first.
- Verify references. Ask for at least two previous customers and actually call them.
Your Own Homeowner's Insurance
Contact your homeowner's or renter's insurance agent to understand your policy. Some policies exclude coverage when you've hired someone, while others offer limited coverage. Knowing this gap lets you decide if you need the errand runner to carry extra insurance to protect you both.
Frequently Asked Questions
Q: What happens if an errand runner loses my package or money? Most errand runners' liability policies cover lost or damaged items up to their stated limit, but coverage specifics vary. You should ask them upfront what their policy covers for loss and get their answer in writing—don't assume they're covered.
Q: Can I use my homeowner's insurance if the errand runner damages something in my home? Typically no; homeowner's policies exclude damage caused by hired workers or contractors. This is why the errand runner's liability insurance is critical.
Q: Do I need to pay more for an insured errand service versus an uninsured one? An insured service may cost slightly more, but the protection is worth it. An uninsured errand runner isn't cheaper—they're riskier.
Ready to hire an errand service with confidence? Compare insured, verified errand runners in your area today.