One of the biggest trends today is food delivery. It used to be just pizza locations would deliver. Today, many restaurants, diners, and even grocery stores are reaching out to offer this service to individuals who are looking for the ability to get food brought right to their home. If your business is considering this type of coverage, it may be time to expand into commercial auto insurance. It’s important to talk to your business insurance provider about your requirements to carry this type of insurance.
Do You Need Commercial Auto Insurance?
Commercial auto insurance is not always necessary for food delivery services. First, remember that your state’s laws may outline the rights and requirement for a business to provide coverage for drivers. In some cases, it is not a requirement.
Next, consider who owns the vehicles used to deliver food. If the vehicles are company owned, it is the business’s requirement to insure them. Your employees cannot be expected to maintain this type of insurance on them. If your delivery drivers will be using their personal cars, there are differences. In this case, you’ll need a commercial auto insurance plan designed for these drivers. These plans are much like pizza delivery plans.
For non-owned or hired auto coverage, designed for businesses that allow employees to operate their personal vehicles for food delivery, there is a need to have ample liability coverage. It’s important to provide this coverage because most personal auto insurance policies do not provide protection to employees when operating their vehicle for personal needs.
Protecting What’s on Board
Some food delivery services – whether hot or cold delivery – are equipped with more advanced systems to keep food stored properly. In these situations, you’ll have expensive equipment on board. And, that means you’ll need to have equipment breakdown insurance to protect against your losses. In addition, you’ll likely need to maintain a quality liability insurance plan and workers’ compensation plan to minimize risks to your workers, other drivers, and your customers.
It’s a good idea to offer these services, but you’ll need to work with your business insurance provider to get the right plan in place to protect your assets and your customers. Commercial auto insurance can be customized to meet these unique needs.
Have any questions about your policy? Call Miller's Insurance Agency, Inc. at (610) 269-4500 for more information on Downingtown commercial auto insurance.