Auto Insurance for Restaurants

When you own a restaurant offering delivery, or your catering company delivers food to your customer’s preferred site, you need to make sure you have proper insurance to cover these trips. The type of insurance you need depends on many different factors, from how the food is transported to whether the vehicle is owned by the employee or the company. In order to determine which type of auto insurance is needed for the delivery drivers of your business, you first need to figure out your company’s risk factors.

Determining Auto Insurance Needs for Delivery Drivers

There are many factors that determine your business’ needs when it comes to getting delivery driver insurance coverage. These factors can include:

  • The items being delivered.There are some specialty insurance companies that work with specific types of deliveries, such as insurance for pizza delivery drivers.
  • Whether the company owns the vehicle being used for deliveries, such as a catering truck to keep the foods warm, or if the vehicle is owned by an individual, such as a small bakery transporting their own flour and sugar to the shop.
  • The temperature at which food needs to be kept for safety purposes. If a driver is transporting foods that must stay hot, the insurance coverage is sometimes different than for those who transport room-temperature or cold items.
  • The size of the restaurant’s fleet, as insuring one delivery vehicle will be quite different from insuring an entire fleet of vehicles that are driven to many different locations.
  • The delivery area in which the company works, because it is easier to insure a single-state provider of food services than it is to insure a company working in multiple states.
  • The speed of your delivery guarantee. If your company guarantees delivery within a short time frame, you will need different insurance than someone who has a wide open window for delivery.The drivers who are trying to beat the clock, despite safety or traffic in some cases, are going to be a higher risk, in terms of insurance costs, than those taking their time and remaining safe.

Once you are able to compare the needs of your company, you can then determine which factors are going to make the biggest impact on your specific type of auto insurance coverage. If you want help finding out how much and which type of auto insurance your company needs for its delivery drivers, give Restaurant Programs of America, LLC, a call. We’ll be happy to help you get the right coverage for your precise needs.