In today’s fast-paced world, customers expect quick delivery of products to their homes or places of business. Therefore, restaurants are turning to product delivery as a way to make extra sales. When deliveries are done in company vehicles, commercial auto policies provide the liability coverage the business requires. However, things are different when employees use their personal vehicles for business purposes. Here, owners and managers can learn more on Delivery Drivers and Your Business: Insurance Insights You Need to Know Before an Accident Happens.
Do Personal Policies Cover Business Liability?
Most personal insurance policies have restrictions or exclusions for the business use of a personal vehicle. Some policies may exclude liability outright, while others offer a reduced limit. In some cases, restrictions are specific to the use of a personal vehicle for deliveries.
When Employees Use Personal Vehicles to Deliver Products
If a restaurant owner relies on drivers’ personal auto policies as a primary means of means of protection, they should require every driver to carry a reasonable limit. It’s also a good idea to ask drivers to ensure that they’re covered with a business use endorsement.
Does the Company Still Need Insurance if the Employee Already Has Coverage?
While instituting the above requirements can help protect a business owner from loss, they’re still exposed. Legal doctrines hold employers responsible for damages workers cause during the course of their employment. Here, non-owned liability insurance can protect a business in cases where the employee’s coverage falls short.
How to Reduce Risk
Because deliveries present a significant risk to a business, it’s important to choose drivers carefully by following these tips.
Only hire drivers 21 and over who have been licensed for three years or more
Obtain each driver’s motor vehicle record before employment and checking it periodically
Manage deliveries so drivers aren’t rushed
Monitor drivers’ behavior
Require drivers to take defensive driver training
If a company owner doesn’t take steps to monitor and screen drivers, it can increase liability and the chances of a loss.
Get the Right Protection
Talk to an insurance agent about the company’s exposure so the owner can get the right protection for their business. It’s also a good idea to talk to the agent about ways to mitigate risks and reduce the chances of a loss.