U.S. Labor Bureau statistics reveal that the pizza delivery industry is the fifth most dangerous in America. On average, around 38 pizza drivers die each year while on the job. Out of those 38, approximately 29 die in auto accidents while enroute to deliver pizzas.
You have a few different options when it comes to investing in pizzeria delivery insurance.
Given this information, it is crucial that your pizzeria’s delivery drivers be insured to protect themselves and your business against accident-related liabilities. However, you might wonder if you have to insure your drivers yourself or if they can use their own private vehicle insurance policies while making deliveries for you.
The Debacle of Using
Private Auto Policies for Pizza Deliveries Private auto policies are designed to cover the expenses of drivers who are using their vehicles for their own private use. These policies do not typically extend to the use of the vehicle for commercial or business purposes.
If a pizza delivery driver is in an accident while on-the-clock, chances are his or her private policy will not cover the expenses of the accident. Instead, the driver will be left to cover the expenses on his or her own.
Private auto insurance policies will not cover accidents that occur while the car is being used for commercial or business purposes because of the higher liability risk. Pizza delivery drivers use their vehicles and are on the road more often than if they were driving for personal use. They also tend to drive faster and engage in riskier behaviors while delivering pizzas, which puts them at a higher risk of being in an accident.
You might think that your pizzeria’s delivery drivers can get away with just telling their insurers that they were driving for personal reasons rather than for business purposes at the time of the accident. However, they more than likely will need to make a police report after the wreck.
Once the insurer gets a copy of the police report, it will discover the real reason for why the driver was in an accident. The delivery driver may then have his or her private policy canceled altogether.
Rather than put your drivers through this dilemma, you can protect them while they are working for you by insuring them through your business. You have a few different options when it comes to investing in pizzeria delivery insurance.
Pizzeria Delivery Insurance
The first option you have as a pizzeria owner is to buy what is called owned auto insurance. Owned auto insurance covers drivers who are using company-owned cars to make pizza deliveries.
This insurance would be practical if you have your own fleet of pizzeria delivery vehicles and require your drivers to use those cars while making deliveries to your business’s customers. If they are in a wreck while on the clock, the owned auto insurance will cover the costs of the accident as long as the drivers were using a company-owned vehicle.
Another option is to buy what is called non-owned liability insurance. This is insurance that can be issued to your pizzeria, It will cover drivers who use their own personal vehicles to make deliveries. If they are in an accident while on-the-clock, their expenses will be covered under this policy.
Finally, you can invest in what is called a Business Owner Policy or BOP. A BOP will cover the liability expenses of drivers while they are enroute to delivering pizzas. It also covers incidental expenses like:
- Liquor liability
- Employment practices liability
- Food spoilage
- Glass and signs
- Water damage
This comprehensive policy covers virtually every aspect of doing business as a pizzeria owner and likewise protects your drivers while they are delivering pizzas.
Private driver’s insurance cannot be used to cover accident expenses of pizza delivery drivers. They must be insured through their employers. You can protect your drivers and your business by investing in one of the available pizzeria delivery insurance options.