Delivery Driver Insurance policies

Pizza Delivery Costs 1,500 Bucks?
http://www.nbcphiladelphia.com/news/loc … icies.html

Pizza Delivery Costs 1,500 Bucks?

Lu Ann Cahn and the NBC 10 Investigators expose the truth behind pizza policies

By LU ANN CAHN and JACKIE MORLOCK

Updated 12:22 PM EDT, Tue, Feb 24, 2009

Where do you order your pizza? Papa John’s? Domino’s? Pizza Hut? It doesn’t matter. They all have similar policies that only require their pizza delivery drivers to have state minimal Personal Auto Liability coverage.

Pretty much, your pizza delivery could cost you more dough than you called for if one of those drivers hits your car.

Take Amber McQuigon for example. All she wanted was some extra cheese and pepperoni pizza from Papa John’s. What she got was a $1,500 bill after her pizza deliveryman dented and scratched her car. The driver had car insurance, but not the kind that’ll cover pizza delivery. Now, Amber is left with a mucked up car and a beefy bill. That’s when she called Lu Ann Cahn and the NBC 10 Investigators.

The NBC10 Investigators found out this problem spreads way beyond your pizza person and herein lies the problem. It doesn’t matter what kind of delivery drivers are doing, whether it’s newspaper delivery, pizza delivery or whatever, the person behind the wheel needs to have a commercial auto policy.

But, commercial auto policies cost about 30 percent more than minimal liability coverage, according to insurance companies like Progressive.

“If my driver is only making $50 a week and is paying $200 extra for insurance for delivery, I don’t know how many drivers I would have,” a Papa John’s spokesperson said.

In a national survey of pizza restaurant owners, over 70-percent said they only require employees to show proof of insurance, which means drivers can have the cheapest coverage possible. Thirteen percent of restaurant owners don’t even ask at all! They have a "Don’t ask , don’t tell " policy. Only 16 percent of restaurant owners said their company provides insurance for delivery vehicles.

“It is irresponsible corporate citizenship to do this kind of thing, to put on your employees the responsibility to buy minimum insurance coverage and not protect the public,” Trial lawyer Tom Kline told Cahn.

In a bad accident, this pizza policy probably wouldn’t hold up in court, Kline went on to say. His position: companies should be insuring the drivers and taking responsibility.

On Monday, November 17, Papa John’s informed the NBC10 Investigators that the company will now pay for Amber’s expenses.

Papa John’s and Domino’s both say they can use their own liability insurance if their drivers are not properly covered, Cahn reported. So far, there has been no word from Pizza Hut.

Without getting the full 55 cent per mile IRS mileage rate the DOL says is required to be paid in minimum wage situations, most delivery drivers find it hard to ‘make it pay’ while carrying the recommended ‘commercial vehicle insurance’. Many drivers therefore choose to just risk it without the expensive additional insurance just to make ends meet.

Because of this and other reasons it is very important that businesses also carry ‘non owned vehicle’ insurance coverage that covers situations such as this.

I recommend that businesses pay delivery drivers the full IRS mileage rate of 55 cents per mile because it is just the right thing to do if paying someone else to represent your business and deliver your product using their private vehicle. In minimum wage situations, the DOL advises that the full IRS rate be paid to ensure no ‘out of pocket expenses’ are borne by the delivery driver which would reduce their net income below minimum wage and expose your business to possible fines.

Pay drivers fairly for the use of their vehicles or ‘a penny saved may become a million burned’.

Most drivers would “choose to risk it” even if they were being paid 55 cents per mile. No doubt about it.

Besides, if a driver is only working, say, 2 days a week - how could even 55 cents per mile come close to covering commercial insurance (that is in force for the entire month)?

That article claims the customer is “stuck with the bill”. Why is that? Why doesn’t the customer get the money directly from the driver or from the business? The article obviously doesn’t tell the whole story.

I am confused again by your position. Do you contend the Department of Labor somehow require (your paragraph 1 above) employers to pay employees the IRS tax deduction rate for miles driven performing their job . . . . or are you simply using hyperbole to emphasize your position recommending (paragraph 3 above) that this be done?

Either way, there is a shared liability that is gloassed over and passed by too often. The delivery driver has a responsibility to insure his auto correctly and adequately to meet the insurance company requirements. The proprietor has a responsibility to provide liability insurance to cover damage done by his employees while on the job. One without the other is incomplete sharing of liability, regardless of any minimum wage complaints.

Driver didn’t tell his incurance company he was using car for deliveries, then hit someone’s car . . . employer didn’t persue verifying adequate coverage . . . . everyone has some culpability. Big bad corporation will eat the bill (and probably should) and driver skips off merrily. No information about how this driver hit the customer car, either. Seems relavent to me.

Gregster has some sort of idea about this mileage reimbursement rate that is not correct.

Even if you as a business have non owned insurance, I think the driver is still supposed to have commercial insurance.

Could you pay the driver enough money and profit at the same time if the driver was paying commercial insurance?

Since when are the employees required to subsidize the bottom line of the store, yet not share in the profits? (not that is doesn’t happen everyday)

Drivers should be fully reimbursed for the use of their vehicles. If not, the store should provide their own vehicles and pay the expenses themselves.

What she got was a $1,500 bill after her pizza deliveryman dented and scratched her car. The driver had car insurance, but not the kind that’ll cover pizza delivery. Now, Amber is left with a mucked up car and a beefy bill.

Question, could her troubles have been avoided if they had just simply left out the major detail of the fender bender having occurred while the driver was working? I doubt any police officers showed up to take an accident report and reported that the driver was delivering. If so, they (the driver and the customer) should have used better judgment and reported the incident having happened when the driver was not working.

Also, I thought the customer could go after the business owner? Isn’t that the reason why some pizza owners pay $10,000+ a year for non-owned insurance coverage?

left out?? That would land you in serious trouble if you were found out. Falsifying insurance claims.

Yep she should have claimed against the store owner (assuming they had insurance that’s what its there for). The pizza guy shouldn’t have paid it!