If your restaurant delivers and your drivers use their own cars, you may be carrying a liability you do not know about. The personal auto policy you are counting on usually does not apply.
The gap
Personal auto policies generally exclude business use, and delivering food for pay is business use. So when a driver has an accident while delivering, their personal insurer can deny the claim, and the liability can flow to the restaurant as the employer. The driver thought they were covered, the restaurant assumed the driver was covered, and neither was.
How hired and non-owned auto fills it
Hired and non-owned auto coverage is built for exactly this: it covers your restaurant’s liability when employees drive their own or rented vehicles for the business. It does not insure the employee’s car for damage, but it protects the business from the liability that delivery creates. For pizza, delivery-heavy, and catering operations, it is one of the more important and most overlooked coverages.
What about delivery apps
Third-party delivery platforms carry some of their own coverage, which changes the picture if you deliver only through apps. But the moment your own staff or vehicles are involved, the auto exposure is yours to address. The details depend on how your delivery actually works.
What to do
If your restaurant delivers with staff drivers, confirm you carry hired and non-owned auto, and make sure owned delivery vehicles are on a commercial auto policy. A quick review closes a gap that can be very expensive.