At Anton Insurance, we know that many restaurants have begun to explore different food delivery options as a way to expand their business. While some of these small businesses use their own vehicles, many plan to rely upon the personal vehicles of their drivers. Even though your business does not own the car, you may still be responsible if one of your drivers has an accident while they’re out on deliveries. Find out what you need to make sure you have protected your business and your drivers against liability claims.
What is Non-Owned Car Insurance?
You may assume that your existing commercial car policy will protect you against claims against food delivery drivers. If your business owns its delivery vehicles, you will cover them with commercial car insurance. That kind of auto policy specifically covers cars, trucks, or vans that your business owns.
Leased and non-owned car insurance covers vehicles that you might lease or that your workers may own and used to conduct business. It would also cover your car if you own it personally and not by your business. Besides meal deliveries, a non-owner policy is what you need to cover any work done that uses a personal car. This might also include errands to fetch supplies, meetings with business partners, and so on. It’s not just restaurants but many kinds of businesses that let this kind of coverage fall through the cracks.
Is it Enough to Require Drivers to Have Insurance?
Will personal auto insurance cover meal deliveries? A personal policy should cover commutes to and from home or venturing out to grab lunch. However, most insurers include language right in the policy that excludes any business use of the car. Some car insurance companies have terminated policies after they discovered customers had violated the terms of these policies.
Certainly, you can and should require your drivers to have auto insurance. At the same time, you really should advise them to speak with their own insurance company or agent before they start making food deliveries for your restaurant. They may need to have their commercial policy. In some cases, they might be able to add optional coverage to their current policy to ensure that they’re covered while they’re driving for you. Typically, insurers keep these options relatively affordable.
In any case, you may still need non-owned auto insurance to protect your business adequately. If one of your drivers causes an accident and is not adequately protected, you can be sure that claimants, their insurance company, or their lawyers will begin to consider you as a good source for damage payments. Delivery drivers face the risk of having accidents every day, so protecting yourself is just reasonable risk management.
Make Sure You Protect Your Restaurant for Claims Against Delivery Drivers
The worst time to learn that you or your drivers lack adequate car insurance is after somebody has already had an accident. Contact us here at Anton Insurance to discuss all sorts of business insurance, including business car insurance. We will answer your questions, review current policies, and help you shop for an affordable package from a high-quality business insurance company. If you ever need to make a claim on one of the policies we helped you obtain, you can also call upon us for help with that.