Last Updated: February 16, 2024, 11:45 am by TRUiC Team


Does Business Insurance Cover Food Delivery?

We'll help answer the question of whether business insurance covers food delivery and what types of coverage you may need to protect your business.

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Person delivering a bag of food.

Does Business Insurance Cover Food Delivery?

The answer to whether business insurance covers food delivery is not straightforward. It depends on the type of business insurance policy you have and the specific coverage options.

If you haven't secured a policy yet, the good news is that several insurance carriers offer food delivery coverage.

Here are the main types of business insurance most food delivery services can benefit from:

General Liability Insurance

General liability insurance is the most common type of business insurance policy. It typically provides coverage for bodily injury, property damage, and advertising injury. 

If your business is sued for any of these reasons, your general liability insurance may cover the cost of your legal defense and any damages you're ordered to pay.

However, general liability insurance policies may not explicitly cover food delivery. 

That's why it's important to check with your insurance provider to see if your policy includes coverage for food delivery. 

Some policies may have exclusions or limitations that could impact your coverage in the event of an accident or injury related to food delivery.

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Commercial Auto Insurance

If your business uses vehicles to deliver food, you'll need commercial auto insurance to protect your vehicles, drivers, and passengers. 

This type of insurance typically covers bodily injury, property damage, collision, and comprehensive coverage.

It's important to note that personal auto insurance policies typically exclude coverage for commercial use, so if your business uses personal vehicles for food delivery, you may not be covered in the event of an accident.

Workers' Compensation Insurance

If you have employees who are involved in food delivery, you'll need workers' compensation insurance to cover any work-related injuries or illnesses they may experience. 

This type of insurance can cover medical expenses, lost wages, and disability benefits for injured workers.

It's important to note that workers' compensation insurance is required by law in most states. If you don't have this coverage and one of your employees is injured while delivering food, you could be held liable for their medical expenses and lost wages.

Additional Coverage Options

In addition to the types of insurance mentioned above, there are other coverage options that can provide additional protection for your business.

Product Liability Insurance

If your business sells food products, you may need product liability insurance to protect against claims of illness or injury caused by your products. 

This type of insurance can cover the cost of your legal defense and any damages you're ordered to pay.

Umbrella Insurance

Umbrella insurance provides additional liability coverage above and beyond the limits of your primary insurance policies. 

This type of insurance can be particularly useful if you're concerned about the potential for large lawsuits related to food delivery.

FAQs

It depends on the type of insurance policy you have. General liability insurance can cover accidents that happen during food delivery if it is part of your business operations. However, it's important to review your policy and talk to your insurance agent to understand your coverage.

Yes, if you have a commercial auto insurance policy that covers your business vehicles, it can cover food delivery as well. However, you should check with your insurance provider to confirm your coverage.

Yes, if a customer claims to have gotten food poisoning from your food delivery service, your general liability insurance policy may cover the cost of legal defense and any damages you are ordered to pay. However, the extent of your coverage may vary depending on your policy.

Yes, if you have employees who work as food delivery drivers, your workers' compensation insurance policy can cover injuries they sustain while on the job. It can cover medical expenses, lost wages, and other related costs.

It depends on your policy. Business interruption insurance can provide coverage for lost income if your food delivery operations are disrupted due to unforeseen events, such as a natural disaster or equipment failure. However, you should review your policy carefully to understand the specific coverage it offers.