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Ready for delivery? Avoid driver insurance pitfalls, 4.2.20

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This information has been provided to the Washington Hospitality Association by its partner Parker, Smith & Feek.

Restaurants in Washington state can operate in delivery capacities during the coronavirus outbreak.

Parker, Smith & Feek recommend business owners always check with your broker/carrier before implementing delivery with your own employees as couriers. Requirements from each carrier could be different.

Non-owned auto exposure exists when employees use their own vehicles for company business. The driver should be screened and authorized like any other driver, and all company rules and policies should apply equally to these drivers.

The driver should also:

  • Be required to maintain adequate limits of personal insurance – check with your broker/carrier as requirements could be different for each provider.
  • Provide you with certificates of insurance or a copy of their declarations page.
  • Be required to notify you if the policy is canceled for any reason.
  • Be financially responsible for the deductible on their (the employee’s) policy.
  • Have evidence that the vehicle is properly maintained and in good operating condition.

You will note that the employee’s own insurance will be primary in responding to accidents that take place while they drive their own car for the business. Likewise, they will be financially responsible for the deductible should an accident occur. 

Check with your broker/carrier because you will usually need to provide the underwriter with the following information to start your delivery service:  

  • 5-year loss runs showing there have been no hired/non-owned auto claims.
  • A drivers list that includes everyone on staff who may deliver. Motor vehicle reports will be run. If anyone has an unacceptable motor vehicle report they will be excluded from coverage.
  • A copy of all drivers’ auto declaration pages that show they carry split-limit coverage of at least $100,000/$300,000/$100,000. 

The Washington Hospitality Association has its own insurance affinity program. If you would like a quote, contact Ken Wells at or Patrick McHugh at

The Washington Hospitality Association can provide you insurance consulting to get through this crisis at no cost to you.

Click My Hospitality Insurance .com