Today, more and more businesses are offering delivery services to their customers. While this brings convenience to customers and helps maintain business during the restrictions of this pandemic, it also opens up new insurance considerations. Even if delivery drivers have their own auto insurance, business owners can be held liable for accidents that occur while the drivers are working. In order to increase the likelihood that you will be covered for the actions of your delivery drivers, it is important that you add hired and non-owned automobile coverage to your insurance policies.
If you are starting a delivery service for your business, it is critical to keep these risks in mind and take the proper steps to safeguard your employees and prevent potential claims.
Examples of risk prevention and safety measures that you can implement with drivers include:
Review the motor vehicle records of any employee who operates a company-owned or personal vehicle for business purposes. Delivery drivers must be qualified, have a valid driver’s license, and have an acceptable driving record.
Obtain a copy of each driver’s current auto insurance declaration page—many personal auto policies have exclusions for delivery. Verify that the employee has coverage for deliveries. If there is no coverage on their personal policy, don’t let them drive for your business.
Perform pre-trip safety inspections of delivery vehicles and ensure vehicles are in proper operating condition each day. If a vehicle does not meet inspection requirements, do not allow employees to operate the vehicle for work purposes.
Spread deliveries out across multiple drivers. This can help you avoid overwhelming your employees, which in turn discourages them from speeding or driving recklessly to make up for lost time. For added safety, refrain from making guaranteed delivery times. Rushing deliveries can increase the likelihood of an accident.
Because every business faces a unique set of risks, it is important to team up with an experienced insurance agent who understands your operations and can knowledgeably review your situation to design coverage tailored to your exact needs. These Coverage Insights highlight a few of the key benefits and coverages provided by a hired and non-owned automobile policy.
Please give your Rue Advisor a call at 609-586-7474, email us at info@rueinsurance.com, or reach out here to learn how a hired and non-owned automobile policy can help you protect your business.
