does my general liability policy cover food delivery drivers for my restaurant

The California Department of Insurance's commercial insurance guide lists automobile among the major exclusions under a commercial general liability (CGL) policy. For a restaurant, that means a general liability policy is not the place to assume that a delivery-driver accident is covered. Your own policy form and endorsements decide, so check them before the first delivery run.

The U.S. Small Business Administration describes general liability insurance as protection against financial loss from bodily injury, property damage, medical expenses, libel, slander and defending lawsuits. The Texas Department of Insurance similarly describes CGL as covering bodily injury, property damage, and personal and advertising injury, including injury or damage arising from business operations.

Those descriptions are broad. The California Department of Insurance's list of major CGL exclusions is where the delivery question turns: automobile appears on it, next to items such as aircraft, watercraft and workers compensation and employers liability. The same guide treats commercial automobile as its own common casualty line and says a Commercial Package Policy can combine commercial auto with property and general liability coverage parts.

The Texas Department of Insurance adds a caution that applies in any state: its exclusion examples are only examples, coverage varies by insurer, and policyholders should review the policy and any endorsements and ask their agent about questions.

What about a business owners policy?

The California Department of Insurance describes a Business Owners Policy (BOP) as a combination policy covering property, general liability and business interruption for small businesses that meet strict underwriting guidelines. That description does not mention vehicles, so ask whether your BOP addresses delivery driving at all. See the PolicyBenchmark pages on business owners policies and general liability.

Travelers, on its hired and non-owned auto page, describes its own coverage. This is one carrier's practice, not a regulator rule. Travelers states that commercial auto policies do not automatically cover vehicles you don't own, even when used for business. It says hired and non-owned auto (HNOA) coverage addresses liability when you or an employee drive rented, hired or personal non-owned vehicles for work. It also states that restaurants making deliveries have a greater HNOA exposure.

Travelers adds that a personal auto policy may provide some protection for an employee's personal auto used in the business, and that important limitations differ by carrier. The sources do not establish how any particular personal auto policy or app-based delivery arrangement would respond, so those are questions for the issuer. For the commercial auto side, see PolicyBenchmark's commercial auto insurance page and the article titled do food delivery drivers I hire need to be on my restaurant's commercial auto policy. The restaurant insurance checklist covers other restaurant coverage questions.

1. Does the general liability policy or BOP exclude automobile, and which endorsements change that?
2. Which exact policy would respond if an employee driving a personal car causes an accident on a delivery?
3. Is hired and non-owned auto coverage on the commercial auto policy or an endorsement, and what limit applies?
4. How are app-based or independent drivers treated under each policy you hold?
5. Does the business description on each policy mention delivery service?

PolicyBenchmark's free business insurance quiz turns your own answers into an editable checklist with an on-device print/PDF option, which can help organize these questions before you speak with a licensed agent.

• California
• Texas

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