Your Guide to Insurance for Food Delivery Drivers

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insurance for food delivery drivers

Your Guide to Insurance for Food Delivery Drivers

A very common misconception for restaurant owners, as well as their employees, is insurance for food delivery drivers.  The majority of restaurants that offer food delivery emphasize the fastest delivery in town and their drivers, usually young age, race to a customer’s home or place of business in hopes of earning a nice tip.

FAST Food Delivery Drivers

An important concern for food delivery drivers is whether you will be driving your personal car, or a company owned vehicle.  Your employer should have a proper and adequate restaurant insurance policy in place either way.  If your personal car or truck will be used for food delivery, your personal auto insurance company should be made aware that the vehicle will be used to make deliveries.

Delivery Restaurant Owners

A commonly overlooked part of running a successful business is maintaining you, your business and your employees are safeguarded in the event of an accident.  Restaurant owners that provide company owned cars or trucks to their employees, commercial auto insurance is an obligation.  Restaurant owners who hire employees with their own private vehicles need to maintain a business insurance policy with hired & non-owned auto coverage.

Read More:  Your Guide to Illinois Business Insurance Requirements

A Restaurant’s Non-Owned Vehicles

A frequent mistake small business owners make concerning their food delivery restaurant is delivery drivers and non-owned vehicles.  Many restaurants do not own any commercial vehicles, but the fact is, auto insurance coverage is still required.

Restaurant owners who require their delivery drivers use their own personal vehicles will need non-owned auto insurance coverage.

Non-owned auto insurance provides liability coverage to the business in the event of an auto accident that involves an employee while on the job.

An additional common mistake a restaurant owner makes is failure to verify a driver’s personal auto insurance policy.  It is extremely important to verify a driver’s personal auto policy to ensure proper liability limits are held.

If your delivery driver is involved in an auto accident and you fail to secure a proper insurance policy, the third-party involved can bring legal action against your business and you’ll be held responsible for damages and injuries incurred.

Don’t wait until an accident happens to find out your restaurant insurance policy doesn’t contain the actual coverage your food delivery restaurant needs.  Contact us today for more information or to request a fast and easy small business insurance quote.


Food Delivery Insurance: Frequently Asked Questions

There is many confusion amongst food delivery drivers regarding what type of insurance food delivery drivers need.  Here are a few commonly asked questions:

Do you need insurance to deliver food?

Simply put, yes.  Whether driving to work or making a pizza delivery, all drivers need property liability insurance at the minimum.  Drivers who use their personal vehicle to deliver food need a particular type of insurance coverage, usually available as an endorsement to a traditional insurance policy.  Contact our office for more information.


Do you need business insurance to be a delivery driver?

Drivers who use their own personal vehicle to deliver food do not necessarily need a business auto insurance policy.  In many states, including Illinois, many companies offer a food delivery endorsement to be added on a standard car insurance policy.


Do you need insurance for Grubhub?
As per Grubhub’s partner requirements, valid car insurance is mandatory if driving for Grubhub.  Although Grubhub verifies insurance by requesting proof of coverage, they don’t actually verify if the car insurance policy adequately protects the drivers in the event of an auto accident.

Drivers who carry personal car insurance without any food delivery coverage put themselves at risk to have an auto accident claim rejected by an insurance carrier.  This means, if you don’t tell your company that you use your car for food delivery and are involved in an auto accident, the company can cancel coverage for misrepresentation and reject your claim.

How about insurance for Uber Eats, Postmates and DoorDash?
If you think your rideshare insurance policy provides the same coverages for Uber Eats as it does for Uber, you’re wrong.  Transporting passengers and food delivery are considered two different exposures.  

How much is food delivery insurance? 

Insured ASAP provides affordable food delivery insurance in Illinois and Indiana.  Generally, food delivery car insurance starts as low as $59 per month.  Contact an agent today for a quick quote: (800) 641-7488
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