What types of insurance do you need to deliver restaurant-prepared food to private residences?

Answer 1

The correct answer is that you need the following:

1. Owned commercial auto coverage (if you are using your own "restaurant owners" vehicle(s) to deliver your products). You need auto insurance on those auto(s). Be careful as to the distinction between the owner's personal auto and that of the actual business, since they can be two different things. An owner's personal auto that is not registered to the business generally is not considered a commercial auto and certainly would not be automatically covered by a carrier for food delivery. If the vehicle(s) are registered to the business, make sure there is liability insurance at a minimum (at least $500,000 limit CSL; preferably $1 mil limit).

Secondly, the next type of auto liability insurance to consider is "Non-Owned" and "Hired Auto Liability". Non-Owned Auto protects the business owner from liability claims associated with auto accidents from vehicles that the business "does not own", hence, the term "Non-Owned". These are vehicles that aren't owned by the business, but employees use for the businesses' benefit (as an agent of theirs). There is special non-owned auto coverage available for food delivery. Hired Auto covers an exposure similar to "owned" auto, but for vehicles that are temporarily rented. None of the auto coverages mentioned herein are automatically covered and must be underwritten carefully before coverage is bound.

2. The other insurance you will need is workers compensation on any employee that is involved in delivering the food. If this is a common practice, the workers compensation carrier will need to know this exposure.

3. Commonly overlooked, but another risk exposure related to food delivery is the product liability itself for the food you are delivering. Food that is released from the care, custody and control of the restaurant takes on a different set of standards, since the food can be left out to spoil, get contaminated, or host to various risk exposures that may be better controlled by a larger staff and procedures. The liability policy should also cover premises and completed operations, in case there is an accident related to the delivery (such as tripping over power cords, inadvertently causing an off-premises fire, spilling hot water on someone, etc).

These are the basics related to food delivery, however, many more risk exposures exist for a restaurant in general such as EPL, property coverage and bonds.

== == == == Liability Insurance on vehicle, since you are not responsible for the food or it's preparation.