A Message from Elliot Whittier: Adding Delivery Service to Your Business

During the current COVID-19 crisis, many businesses are forced to take a different look at their operations, and some are looking to respond by adding or enhancing delivery services.  Indeed, as of this writing, Governor Charlie Baker has instituted a ruling that food at bars and restaurants is to be limited to take-out and delivery only.  What are the insurance ramifications of adding delivery services to your business operations?

If your restaurant (or other establishment) wanted to conduct delivery you can’t just allow your employees to take their car and make deliveries for you.  But there is a simple solution to address this for your business – adding a hired and non-owned liability policy to your insurance program.

What is a hired and non-owned liability insurance policy?

Hired and non-owned auto insurance protects you, the business owner, if you have employees who sometimes drive their own car, or even one they have rented, for your business use.

When your employee is using his or her own car, or one that you have rented for business, and gets in an accident, your business could be liable. 

Of course, you should confirm that your employee has a valid driver’s license as well a current, in-force personal auto policy.   Your employee must also notify their Agent or Carrier that they are using their personal vehicle for business purposes. 

What does a hired and non-owned policy cover?

Typically, what’s covered are at-fault bodily injury liability and property damage liability claims including the cost to defend them.   

What’s is not covered?

Typically, what’s not covered is physical damage for the rented or employee-owned vehicle, nor any damaged property being transported.  

It is not expensive to add a non-owned auto liability policy.  You can find out more by calling your insurance agent, or feel free to give us a call at Elliot Whittier Insurance at 617-846-5000 with any questions about coverage details, limitations, or for a quote. 

This was written by Christine O’Keefe and Steve Roy of Elliot Whittier Insurance.