do food delivery drivers I hire need to be on my restaurant's commercial auto policy

The California Department of Insurance describes commercial automobile coverage as protection against liability from autos used in a business and against damage to the covered auto. It says a Business Auto Policy (BAP) can provide coverage for business, personal, non-owned or hired autos, depending on the coverage purchased and applied to each scheduled auto.

The same guide says coverage can differ by vehicle, and that covered auto symbols, numbered 1 through 13, designate the coverage assigned to a scheduled auto. For a restaurant, the practical point is that a BAP's protection is built from the coverages the business chose, so a delivery vehicle's treatment depends on those choices. The California guide does not discuss food delivery, and it describes California practice; how a policy in another state treats a delivery driver is a question for that policy's insurer.

The guide also says a broker-agent compares limits, exposure bases, business classifications, exclusions and endorsements to look for gaps, errors or overlaps, and that more credible information from the business helps the agent assess needs. State background is on PolicyBenchmark's California guide.

Travelers is a carrier, so its page shows how one insurer describes its own products. It says hired and non-owned auto (HNOA) coverage is relevant when a business hires, rents or leases vehicles for work, and that its commercial auto policies don't automatically cover vehicles a business doesn't own, even when used for business.

Travelers adds that a personal auto policy may give some protection for an employee's personal car used in the business, with limitations that differ by carrier. It states that restaurants making deliveries have a greater HNOA exposure and more risk.

Its driver-safety tips include setting age, experience and safety standards, vetting and approving drivers, ensuring valid licenses, checking motor vehicle records annually, and prohibiting cellphone use and distracted driving. These are one insurer's suggestions, not a legal requirement.

Bring your delivery plan to your broker-agent or insurer and ask:

1. Which coverage in our policy applies to vehicles we do not own, whether hired, rented or an employee's personal car?
2. If a driver uses a personal car for deliveries, which policy or coverage part responds, and how does the insurer treat the driver's own personal auto policy?
3. What driver standards or motor vehicle record checks does the insurer expect for people who deliver?
4. Do any exclusions or endorsements affect food delivery use?
5. How should we report a change if delivery volume grows or we add drivers?

PolicyBenchmark's Business Insurance Assessment turns your answers about your business into an editable educational checklist with explanations and a printable report, which can help you organize topics to raise with an insurer. It does not determine suitability, eligibility or sufficient limits, and it does not put coverage in place. For background, see Commercial Auto Insurance: Coverage, Costs & Requirements, Restaurant Insurance: Opening, Operations and Renewal Checklist and Commercial Auto Insurance: Prepare a Complete Vehicle and Driver List.

Have a question about your own situation? Send it to PolicyBenchmark.