So, your restaurant delivers food? Awesome for customers, potentially disastrous for your insurance if you’re not careful.
Let’s say your employee is out delivering a pizza in their own car. If you don’t have a Business Auto Policy (BAP), coverage might fall to their Personal Auto Policy (PAP). That is, unless their insurer decides food delivery counts as “livery conveyance,” basically a fancy term for “you’re kinda like Uber, but with extra cheese.” If that exclusion applies, suddenly no one's covered, and everyone's wallet is in danger. If you do have a BAP, that’s better, but only if you’ve chosen the right symbols. Symbol 1 (Any Auto) or Symbol 9 (Non-Owned Auto) opens the coverage door. But even then, BAP typically covers the business, not the employee. Without the CA 99 33 “Employees as Insureds” endorsement, your driver could be left out in the cold... and possibly sued by your own insurer. Super awkward. Also, the employee’s PAP is always the first line of defense. If their limits are low and they accidentally crash into a surgeon on her way to the OR, your business could be footing a huge bill after the PAP taps out. The Must-Have Menu:
Food delivery without the right insurance setup is like sending your drivers out with no brakes and hoping for the best. Protect your team, your business, and your peace of mind by making sure your policies (and your policy symbols) are working for you, not against you. Confused? Not sure what coverages you really need? Reach out to us, Blue Sky Insurance. We’re here to help you navigate the fine print and keep your business moving safely.
1 Comment
4/24/2025 12:54:10 am
This article serves as a crucial reminder for food delivery drivers to review their insurance policies and ensure they have adequate coverage for their work activities. Understanding the limitations of personal auto insurance in the context of commercial use is essential for protecting oneself from unforeseen liabilities.
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