Do You Need to Insure Your Food Delivery Driver?

Do You Need to Insure Your Food Delivery DriverAs a delivery driver, your mission is simple—deliver the food while it’s hot, and do it fast. Drivers who are trying to earn a big tip may not always be the safest drivers, which creates liability concerns for the business owner. Driver-sales jobs, including pizza delivery, are categorized among the most dangerous in the country; ranked 5th in the list of the top 10 most dangerous occupations in a U.S. Bureau of Labor Statistics Report. Getting the right food delivery coverage in place by contacting our agents will protect you financially in case an employee of yours happens to be involved in an accident.

Food Delivery Drivers

When you are starting a new position as a delivery driver for a restaurant, the first question you’ll want to ask is if you will be using a company-owned car or your own vehicle. Your employer should already have auto insurance in place for either scenario.

Commercial and personal vehicles have differing driving habits, and therefore different risks. This is especially true because a commercial driver drives more than a private one—more driving equals more risk.

Food Delivery Owners

Making sure you and your employees are protected in the event of an accident should be among your highest priorities. If you provide company vehicles for your employees to drive or you run a restaurant and hire drivers, commercial auto insurance and non-owned vehicle coverage is a must. Let’s take a look at some examples below:

Providing Company Vehicles

  1. Car insurance: An owned or non-owned auto insurance policy that protects you from driver liability risks.
  2. Business owner’s policy: A business owner policy (BOP) combines several coverages, such as general liability, property damage coverage and business interruption insurance. Commercial vehicle are usually excluded unless asked for and endorsement.
  3. Workers compensation: This covers the driver in the event of work-related injury or illness. It provides for payment of medical expenses and lost wages. This depends on the laws of your state.

Non-Owned Vehicles

If you don’t have a single commercial vehicle in your fleet, you still need auto insurance coverage. When you opt to have all of your delivery drivers use their own cars for their job, you need non-owned auto insurance coverage. This type of auto insurance protects you from liability up to the limit you purchase for damages for car accidents caused by your employees while on the job. Any injuries the employee incurs should be covered by  worker’s compensation.

If your driver gets into an accident and you fail to place them on a commercial or non-owned policy, the party they hit could bring legal action against you. Your business will be responsible for the damages and injuries that they have incurred. As a business owner, you need the right policy to protect yourself and your business. Make sure to contact our experts at H&K Insurance. We will help you choose the right coverage for your business.


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