Insuring Pizzerias' Cars: 2 Business Auto Insurance Protections To Consider
Pizzerias that rely on vehicles during their daily operations are generally required to carry certain vehicle-related business insurance coverage for those cars. What type of business auto insurance a pizzeria needs, however, depends on what cars it's insuring. There are two different types of business auto insurance that your pizza shop might need if it relies on vehicles.
1. Hired and Non-Owned Vehicle Insurance for Delivery Drivers' Cars
Hired and non-owned vehicle insurance is a specific type of auto insurance that provides liability protection to businesses when vehicles are driven for work. The insurance specifically applies to vehicles that a business doesn't own, which commonly include either employees' cars or rented vehicles.
If your pizzeria offers delivery services, the shop should have hired and non-owned vehicle insurance in place.
You don't have to provide property protections for delivery drivers' cars, as the responsibility of insuring their cars against damage remains with the drivers. Their personal auto policy's comprehensive and collision coverages will take care of this. Of course, your delivery drivers should be made aware that they're responsible for carrying these coverages themselves.
You do need to protect your business from the potential of a liability lawsuit if one of the shop's delivery drivers caused an accident while working. The liability suit would likely be filed against your pizzeria -- and not the driver -- so the liability protections of a hired and non-owned vehicle insurance policy would be needed.
2. Commercial Auto Insurance for Company-Owned Cars
Commercial auto insurance is used to insure company-owned vehicles, and it provides both liability protection and protection against damage that the insured vehicles might sustain. This type of auto insurance is more comprehensive and costs more, but the less expensive hired and non-owned vehicle insurance isn't suitable for a company-owned car.
If your pizzeria owns its own car, the shop will be required to carry commercial auto insurance. This is most common when a pizza shop has multiple locations and gives high-up managers a company vehicle to use, or when a pizza shop offers offsite catering and uses a company van to cater events.
Importantly, these two types of vehicle insurance aren't mutually exclusive. If your pizzeria has delivery drivers use their personal cars and the shop owns a car, you may need to get both hired and non-owned vehicle insurance and commercial auto insurance. In this case, these two coverages would be obtained via separate policies.
To learn more about business insurance, reach out to a local insurance provider.