At Harnish Insurance Group, we work with many local restaurants and other small businesses. To compete with the growing popularity of online food delivery services, some restaurant owners ask us about hiring their delivery drivers. A number of local food businesses have a delivery-only model. Providing your customers with the option to order food at their home and office may give you a competitive edge; however, you should examine the risks of having your drivers out on the road. Find out more about the risks of food delivery and how to protect yourself.
Is Food Delivery Risky Business?
Very often, pizza shops and other kinds of restaurants hire younger drivers. Starting, these are the riskiest group of drivers. Add in incentives to get food delivered fast, and you may have created a recipe for problems. A Bureau of Labor Statistics report found that food delivery was one of the most dangerous occupations. No matter how experienced your drivers are, accidents are bound to happen.
The vast majority of drivers have only minor scrapes or no problems at all. At the same time, some hazards include property damage, injuries, and even robberies. Restaurant owners have to understand these risks in order to protect their drivers and their businesses.
You should also know that most personal auto policies exclude using cars to conduct business. That means that you can’t simply rely upon your employees’ car insurance to cover them while they’re delivering your food. If you employ these drivers, you need to explore business coverage.
How to Protect Your Business and Your Delivery Drivers
You may think that you’re already covered with your business car insurance. Typical business car insurance may only cover vehicles that your company owns. In fact, it may not even cover you if you ask an employee to use their car to run any errand for your restaurant.
This could include a quick trip to a grocer to pick up supplies or to a computer store to get an extra cartridge of printer ink. If you run a small business and use your car to run errands, you might already be taking a big risk without the right insurance. Unless you’ve examined your coverage, you should never assume it covers using cars that your business does not own.
These are some kinds of extra car insurance that you might need:
- Non-owner car insurance: You can purchase a hired or non-owned car insurance policy if your delivery staff uses their cars to make deliveries for your business. These policies will protect your business against liability claims if that employee has an accident while they’re using their vehicle to conduct your business. It can also cover any vehicles that you might need to lease for your work.
- Employee commercial car insurance: You might also require your employees to add an option on their policies to include business use of their vehicles. In particular, if you’re hiring younger drivers, they’re not likely to understand all the details of their own policies.
How to Ensure Your Food Delivery Business is Protected
Here at Harnish Insurance Group, we can answer your questions about all types of business and personal car insurance. You’re welcome to call or email us with questions about your current coverage. Of course, we will be happy to shop with you to find the most competitive rates from high-quality insurance carriers. Save money and enjoy the right protection by working with us.
