Insureon Blog

Does Your Restaurant Need Auto Insurance?

2. October 2013 14:43

Devastatingly handsome pizza delivery man delivering pizza.

With the hustle and bustle of your restaurant taking up most of your time and attention, it makes sense you’d have a difficult time weighing the pros and cons of a Commercial Auto Insurance package. And for good reason – there’s a lot to consider, and things aren’t always black and white.

But if you or your employees drive for work purposes, Auto Insurance can make or break your business. If you have even so much as a single vehicle in operation for any reason – restaurant deliveries, or employees traveling to and from locations for catering services – it’s essential that you include Auto Insurance in your business’s insurance plan.

And if you run a mobile food business, you may find this recent blog post helpful in addition to the information provided here: “Mobile Marketing for Mobile Businesses (Food Trucks, Concession Cart Vendors, and More).”

What Are the Benefits of Carrying Auto Insurance for a Restaurant?

If you have an employee operating a company vehicle – or an employee using their own vehicle, for that matter – you need to carry some form of Auto Insurance. Most people wouldn’t trust themselves behind the wheel of an uninsured personal vehicle because they understand that anything can happen – even the most careful and trained driver is capable of causing an accident that could end up costing thousands of dollars in medical expenses and property damage.

It’s even riskier to have an employee operating an uninsured vehicle for your business. Sure, you’ve done your homework – called references, performed a background check, and completed extensive interviews to determine they’re trustworthy and safe, but, as your mom likely said when you were learning to drive, it’s not them you’re worried about – it’s all the other drivers on the road.

The Employees of My Catering Business Use Their Own Vehicles. Is There An Insurance Policy for That? When Should I Consider Purchasing It?

Yup. It’s called Hired and Non-Owned Auto Insurance. In a nutshell, Hired and Non-Owned Auto Insurance provides protection for employee automobiles and rented trucks, vans, and cars. If you’re currently operating without any form of insurance at all, the best time to purchase this policy is as soon as possible.

When it comes to auto accidents, there will always be questions of who’s at fault. If you’re relying on an employee’s insurance policy to carry the weight of a potential accident, then you may be in store for financial crisis should the worst occur. Why? Because many Personal Auto policies specifically exclude driving done for work.

I’m Thinking About Purchasing Vehicles So I Can Add Deliveries to My Restaurant Business. What’s My Best Option for Auto Insurance?

Nowadays, you almost need to offer delivery services in order to keep up with the competition. With smartphone apps linking customers to competing businesses that can deliver food in no time at all, you may be scrambling to keep your core customer  base if you aren’t in on the game.

And when you do decide to purchase a delivery vehicle, your best option for coverage is Commercial Auto Insurance. This highly customizable policy can offer protection against a slew of potential accidents and injuries.

You can speak with an Insureon agent to find out more, or start by visiting our page written especially for restaurants wondering what insurance packages are best for their business: Policies for Restaurants and Fine Dining Establishments.

know your business risks


Restaurants | Risk Management | Small Business Risk Management

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