Is this Adequate delivery insurance?

Hey guys,

Got a quote for hired, non owned delivery insurance from state farm. The premium is roughly 300.00 every 6 months (50.00 a month). The limits are 100/300/100.

That’s less than I was expecting to pay for hired non owned, so I just want to make sure this will be good enough.


My State Farm insurance agent told me they do not do delivery insurance. I had to go through Progressive and it was about 3k for the year with 2 cars and 4 drivers (including myself) covered on each.

That seems very low…But without seeing the underwriting questionnaire and the actual quote it is hard to tell if they are quoting on the right coverage or not…

Those are individual policy limits. I was also told by State Farm that they do not write this coverage.

I too was told by State Farm that they do not do delivery insurance.

Maybe it’s new?

Look here:

Scroll down to the bottom where it says (ENOL):
A State Farm Auto ENOL commercial auto insurance policy protects you when your employees drive their own vehicles for business purposes, so your revenues won’t be siphoned off by legal judgments. If your employees even occasionally use their own cars for your business, don’t be driven to financial loss. Protect your business with this affordable coverage.

I think if you check with them they typically don’t insure taxis or pizza delivery drivers.

They have had my workers comp insurance for roughly a year, their office is one block away from the pizzeria. They know what we do, she specifically asked me if we would be doing any pizza deliveries after 9PM as that would drastically increase the price.

Maybe it depends on the state, but it definitely seems like delivery insurance to me. But, then again that’s why I’m asking you guys instead of “betting the farm” on it.

Hired and non-owned coverage for employee vehicle use is a common part of many commercial insurance policies. I have it as part of my retail business and it covers me if an employee goes to the office supply store in their own car to pick up printer cartridges. Even restaurants that do not deliver have no problem getting this. In a restaurant that is mainly sit-down it is not too hard to get either even if they deliver some orders or do catering. I would not be surprised if State Farm offers this too… But when delivery passes 50% of the business it is a different story.

In your shoes, I would be very concerned to have documentation that the insurer has accurate information about store revenue, how much comes from delivery, what the hours and delivery radius are etc. Maybe it is different in another state, but when my local State Farm office asked to quote our business they came back said they could not write the auto portion.