HIRED AND NON-OWNED AUTO INSURANCE
for Catering & Food Delivery Businesses

As a food service business owner, you may sometimes rely on employees to drive their personal vehicles or rented cars to run business-related errands, even if your company doesn't deliver food. But what happens if you employee has an accident while picking up extra supplies in their own car?

When your food business has Hired and Non-Owned Auto Insurance, your business is protected no matter which vehicle is representing your company on the road. This coverage can easily be added on to your General Liability policy or your Business Owner's Policy to strengthen your business protection and to supplement both car rental agencies' liability coverage and your employees' personal auto insurance policies. Coverage may also be available for catering businesses whose delivery services are part of their daily business.

Keep reading to learn more about Hired and Non-Owned Auto Insurance, and be sure to contact one of our food service insurance experts to see if your business could benefit from this coverage.

Hired and Non-Owned Auto Coverage: Protecting Food Service Professionals

Hired and Non-Owned Auto Coverage: Protecting Food Service Professionals

For food service businesses, Hired and Non-Owned Auto Insurance is both an inexpensive and essential risk management solution for employees traveling on behalf of the company in their personal vehicles or rented cars. Should your employee wreck their own or rented car while carrying out company business, Hired and Non-Owned Auto Insurance covers the high cost of legal fees, court-ordered judgments or settlements, and other expenses if your restaurant or catering business is sued for bodily injuries or property damages as a result of the auto accident.

In the food service industry, you never know when you may need an employee to run out for last-minute supplies, and if they have an accident, your company could be held liable for the damages and injuries that ensue. Hired and Non-Owned Auto Insurance protects your business if the third party in the accident decides to sue your restaurant for the injuries or property damage they've suffered. It's important to note that this coverage only steps in to shield your business—your employee could still be held personally liable for the injuries or property damage the other driver sustained. Your employee's own auto liability coverage should protect them from personal lawsuits filed against them, and your Hired and Non-Owned Auto coverage can make up the difference if the employee's policy isn't enough to cover a claim.

If you're wondering whether Hired and Non-Owned Auto coverage is appropriate for your business, contact our food-business insurance experts today for assistance.

Key Details About Hired and Non-Owned Auto Coverage for Food Delivery Businesses

Key Details About Hired and Non-Owned Auto Coverage for Food Delivery Businesses

In addition to strengthening your company's General Liability policy, Hired Auto and Non-Owned Auto Insurance can help your food business meet certain contract requirements for Commercial Auto coverage if your company doesn't own any vehicles. When shopping for business insurance for your restaurant or catering business, consider the specific coverages a Hired Auto and Non-Owned Auto endorsement includes.

Hired Auto Coverage

If you or your employees regularly travel for your business, Hired Auto coverage can either supplement or replace a car rental agency's liability coverage. Hired Auto coverage will not cover physical damage to a rented vehicle, so you will likely want to purchase physical damage coverage from the rental agency when traveling for business.

If you or your employees drive a rental vehicle on behalf of your business and an accident occurs, your Hired Auto liability coverage will protect your company should a third party decide to sue. However, you or your employees could still be held personally liable for damages or injuries to third parties as a result of the crash, at which point your Personal Auto Liability coverage should kick in. Hired Auto coverage can only supplement what your personal policies do not cover.

Non-Owned Auto Coverage

Non-Owned Auto coverage works similarly to Hired Auto coverage as it protects your company if your employees have an accident while carrying out business in their personal vehicles. Should a third party try to sue your company for injuries or property damages related to the accident, your food business' Non-Owned Auto coverage will cover your company in a liability claim.

This coverage protects the company only and supplements the driver's Personal Auto Liability coverage on your business' behalf. A third party could still sue you or your employee personally, at which point your employee or your Personal Auto Insurance policy would need to step in.

Legal Defense Costs Coverage

Should your company be sued as a result of an accident in a rented or employee-owned car, your Hired Auto and Non-Owned Auto will cover the legal fees associated with defending your restaurant or catering business. Even if a meritless lawsuit is brought against your company, expenses to defend yourself against such claims can add up quickly. Fortunately, your Hired and Non-Owned Auto policy will typically pay for…

  • Defense costs, including attorney's fees, witness fees, and police reports.
  • Court costs, bond premiums, judgments, or settlement costs, up to your policy limit.
  • Business interruption expenses you incur while assisting in your company's defense, such as lost earnings if you must appear or testify in court.

Talk to your insureon agent to determine if Hired Auto and Non-Owned Auto Insurance is an adequate solution to your food business' auto insurance needs.

Auto Insurance Policies for Catering & Food Delivery Businesses

Auto Insurance Policies for Catering & Food Delivery Businesses

As a caterer or food delivery business owner, you rely on vehicles to keep your company running. Our agents at insureon can help you find the business insurance policies you need to protect your business no matter where it goes. Contact one of our insurance agents to find insurance policies that meet the unique demands of your food business.

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