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Delivery insurance?

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CM1424

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Been delivering for 25 years and never knew we would need a policy to cover our business should our driver get into an accident with their own vehicle. Our drivers use their own cars and their own insurance policy. I asked the company who insures our business about non owned delivery insurance and they told me they cannot find one company to add this coverage to my policy?! Our business is a corporation, so if my driver hits someone are we screwed? We have an umbrella policy on our homeowners insurance, would that cover us?
 
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If you do not have hired/non owned insurance you are screwed if something happens. The umbrella on your personal home would not protect your business. I have a commercial umbrella for my business as well as the hired/non-owned. Good luck getting coverage in CT…you will probably need to get coverage through the non-assigned risk pool and they will make you jump through alot of hoops and it is not cheap.
 
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Just because your insurance agent can’t find a company doesn’t mean that there isn’t one. It just means that they don’t have one in their pool of companies. I’m in NY and use National Continental Insurance through Progressive. I pay just under $700 a year for 9 vehicles and $1,000,000 in coverage per accident. Maybe call them up directly or look for a different agent that uses a company who offers it.

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We get ours through Illinois Casualty Company via our agent. Rates are based on percent of revenue as delivery. Of course monitoring MVR of drivers on policy helps. Not cheap. But better than not being covered. Also have a business umbrella. Call several agents. If you are getting all the info together anyway may as well shop it all around. Maybe save some on the other policies to offset the new policy. Insurance is like food vendors. If you don’t monitor it creeps up.
 
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I use State Farm here in California. Not sure if they offer nation wide but you should definitely check. Saved me a ton when I switched last year.
 
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Never used them but just saw an ad in PMQ magazine for pizzainsurance.com the site has hired and non-owned auto as an option

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famousperry said:
If you do not have hired/non owned insurance you are screwed if something happens. The umbrella on your personal home would not protect your business. I have a commercial umbrella for my business as well as the hired/non-owned. Good luck getting coverage in CT…you will probably need to get coverage through the non-assigned risk pool and they will make you jump through alot of hoops and it is not cheap.
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Travelers is dropping me because i have drivers so I am searching for A NEW COMPANY… Although I am thinking about using independent contracts at 10 % and tip for slow tiems and 5% and tip for busy times. this seems like a win win for taxes as well .
 
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CM1424 said:
Been delivering for 25 years and never knew we would need a policy to cover our business should our driver get into an accident with their own vehicle. Our drivers use their own cars and their own insurance policy. I asked the company who insures our business about non owned delivery insurance and they told me they cannot find one company to add this coverage to my policy?! Our business is a corporation, so if my driver hits someone are we screwed? We have an umbrella policy on our homeowners insurance, would that cover us?
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think about your contracting wiht your drivers as independent contractors… However that means you cant set their schedule or ask them to help !
 
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Travelers is dropping me because i have drivers so I am searching for A NEW COMPANY… Although I am thinking about using independent contracts at 10 % and tip for slow tiems and 5% and tip for busy times. this seems like a win win for taxes as well .
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Rebecca, I would be very careful and consult a labor attorney if you go that route. On top of them not doing any side work and having a set schedule I know you can also not have them wear a uniform/topper. Not sure if you can even require them to use a delivery bag. I am pretty sure they would be required to have commercial insurance which is alot more expensive. Restaurant wage litigation is hot in my state at the moment so this is the last thing I want to deal with now. There is a regional restaurant that has a class action lawsuit against them by their waitstaff to pay them a non-tipped wage for their time doing sidework!
 
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Just because a business claims its people are contractors does not make it so.

Yes, without insurance you are exposed. You are also the best target. Think about your net worth and that of your drivers.
 
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