We are thinking about starting to offer delivery- but worried about liability. Is this something we should worry about? From what I am reading it will increase our volume quite a bit. Is extra insurance needed?

Will it increase your sales volume? Likely, yes. No guarantees, since some of your existing customers may start using your delivery service only. It’s a trade-off in those cases.

Do you need insurance? Most likely yes, but you need to ask your existing insurance agent about that. It’s been widely discussed here in the past (check the TT archives) but you really need professional advice from someone who knows your specific situation.

I read your other post earlier. I would get yourself set up and ready to go with what you have before you think about expanding into delivery. Get into the groove with your dough, sauce and toppings so to speak.

Eupher - He is going to need insurance 100%, not a most likely. If one of your drivers gets into an accident the other guy is not going to sue your driver who makes $4 an hour + tips. They are going to go after “money bags”. And I assure you that even if you have alll your money tied up in the shop and are losing money daily, being the owner you look like money bags to most people.

If I had a dollar for everyone who thought I pocketed $9 from a $10 pie, I would be rich. but the reality is that you will set yourself up for some huge liability by adding delivery. The other things to take into consideration are driver no-shows. What do you do then? You can run things slowly with 1 less in store, but no driver one night? You are asking for customer compalints as well.

Look through the TT and talk to a few of the posters who are thinking about dropping deli. The grass might seem greener, but the reality isn’t.


What about having the drivers sign a “contract” agreement that they are responsible for auto insurance in case of an accident? Wouldnt that cover that end of it?

Nope, that definitely won’t cover anything. You need a non-owned auto policy. If your driver gets in an accident, his or her insurance company is going to sue you, the “deep pockets.” If you have no insurance it will probably bury you. What if someone gets seriously injured or (God forbid) killed? You’ll be sued for millions.

I just changed my non-owned auto to HRH Insurance. The catch is that you’ll have to move your General Liability insurance there to get their non-owned. I moved everything over there with the non-owned (auto, liability and liquor) and they saved me $4,000 per year in insurance. I was paying $5,300 just for non-owned auto before! They have everything covered for about $3,100, and the policies are identical.

The second catch is that you have to be a member of NAPO (they helped put this program together with HRH), but the dues are only $99/year.

I know that sounds like an ad, but I promised I would plug them when I had the chance. I mean, they saved me $4,000 per year!

Call Cheryl: 925-288-4224. She took very good care of us.

One more thing after I read Chris’ post…

I have to echo his comments that I’ve dreamed about dropping delivery many times, and still do now. The only reason we haven’t dropped it is because everybody else around us delivers. When you figure in the driver’s wage per delivery, payroll taxes, worker’s comp (we pay 5% of the driver’s wage, vs 1% for inside employees) the insurance, the hot bags (they don’t last forever)… there’s not much margin in it compared to a pick-up or dine-in.

And he’s also right about the driver no-shows. You are really screwed when that happens. It’s not like a cook calling off. You’ll probably end up being the driver for the night. Basically, it is a royal PITA.

But if you decide to go for it, make sure you get the proper insurance.

I also agree with chris post…

Im still trying to talk myself to drop my delivers.Im even considering to deliver just business.
Make sure you really think it out.

Thanks - will do.
And HEY, Cheryl’s phone looks like she’s about 5 miles from me…