Do I Need Commercial Insurance to Deliver Pizza?

Side hustles are a reality for many Americans looking to beef up their income. As far as side hustles go, pizza delivery or fast-food delivery is a popular choice for many job seekers who do not have the skills, college education, or experience to match other jobs on offer.  

As a restaurant or fast-food owner, you’re unlikely to ever have a shortage of delivery drivers. But hiring drivers for pizza delivery isn’t without risk. Road accidents and robberies are a reality that cannot be ignored. And the responsibility to reduce these risks falls at least partially on you as a business owner.

Why Your Drivers’ Own Insurance Won’t Do

While it is likely that delivery drivers have insured their vehicles, personal auto insurance policies are only applicable for personal use. If a delivery driver tries to lodge a claim for an accident that occurred whilst on the job, they should not be surprised if it is denied. 

Personal auto insurance does not cover the use of personal vehicles to earn money by delivering products or transporting passengers.

Choosing The Right Insurance For Your Delivery Drivers

The right type of insurance is crucial to protect employees against financial harm and personal injury while completing deliveries. 

Depending on your circumstances, you should opt for Non-Owned Car Insurance, Commercial Insurance, or Pizza Delivery Insurance insurance instead.

When researching your options, you should look for insurance policies that cover, at the very least, the following: 

  • Damage to vehicles,
  • Guaranteed medical treatment payment to all involved parties,
  • Legal fees,
  • Liability cover for harm caused to another person and, 
  • Cover for drivers that are underinsured or uninsured. 

Non-Owned Car Insurance

Non-owned car insurance policies are designed to cover the occasional use of personal vehicles for business purposes.  

Commercial Auto Insurance 

You will still need commercial auto insurance coverage, which offers coverage to all business owned cars. Commercial car insurance also covers personally owned vehicles if they are primarily used for work purposes. 

Pizza Delivery Insurance 

Pizza delivery insurance is a type of insurance policy designed to offer protection specifically to pizza and food delivery drivers and their vehicles. 

How Much Does Commercial Auto Insurance Cost? 

The cost of insuring delivery drivers and/or their vehicles can vary based on a number of factors such as: 

  • History of previous claims,
  • Driver’s driving record, 
  • Purchase value of vehicle, 
  • Weight of the vehicle, 
  • Make, model and year of the car, motorbike or scooter,
  • Intended use of the vehicle and the risk thereof,
  • Number of vehicles to be insured,
  • Operational location of the business, 
  • Miles driven and, 
  • How many employees will be driving non-owned vehicles

Paradiso Insurance Protects Your Drivers and Your Business

It is absolutely essential to protect your business against potential liability as well as protect employees who perform deliveries by purchasing the correct type of insurance. 

If your driver will be using their own vehicle for deliveries you will need a non-owner car insurance policy. Whereas, commercial auto insurance is necessary where employees will be using the company’s vehicles for deliveries. 

If you would like to discuss insurance options for your delivery staff and vehicles or if you have any questions, get in touch with us and a member of our team will be in touch as soon as possible.

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