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Choosing the Best Insurance for Your Restaurant Food Delivery Service

By Dean Laming on January 3rd, 2024

For restaurants expanding into food delivery, ensuring orders arrive safely requires more than just selecting reliable drivers and vehicles. It also mandates protecting the business itself against the array of risks that come with off-premises meal transport, ranging from road accidents to incorrect deliveries.

Thankfully, with the right restaurant insurance coverage, restaurateurs can confidently take that first step into delivery knowing risks are covered and the focus stays on food quality rather than financial liabilities. 

We break down key considerations for choosing policies to protect your venture.

Navigating the Delivery Insurance Landscape

More than simply extending existing restaurant insurance to your new delivery operations, it pays to re-evaluate protection needs through a delivery-focused lens. Core coverages to examine include:

Commercial Vehicle Insurance

Essential for covering company-owned vehicles, it handles collision repairs and medical care if drivers have accidents. It also often covers third-party injury/damage claims.

Hired and Non-Owned Vehicles Insurance

Protects against liabilities involving rented delivery vehicles or those owned by employees or contractors. It closes liability gaps beyond owned-fleet policies.

Public Liability Insurance

Handles legal claims if food causes illness or injury, as well as customer injury suits stemming from slip-and-falls on delivery entrance ways.

Employers’ Liability Insurance

Legally required for employees, it pays for lost wages, healthcare and rehabilitation services when delivery drivers suffer job-related illnesses or injuries in crashes.

Though premiums increase with added coverage, going uninsured on these fronts leaves possible bankruptcy just one accident away.

Tailoring Policies to Delivery Operations

In insurance plans, ensure to adapt them suitably to your delivery setup by keeping in mind:

  • Fleet size – Insurer risk limits often constrain total vehicles covered, necessitating coordinating multiple policies when exceeding caps.
  • Driver recruitment – Hiring minimum age, licence/driving history and training requirements should align with insurance eligibility terms.
  • Order liability – Detail product handling protocols to meet professional liability provisions for protecting food quality en route.
  • Supplemental services – Extend policies to adequately encompass additional offerings like alcohol or catering delivery, if applicable.

Carefully evaluating and communicating operational details with prospective insurance partners helps you avoid coverage gaps while benefiting from bespoke offerings tailored to how you execute food delivery. 

Implementing Loss Prevention Strategies

While insurance coverage represents a financial safety net if accidents occur, restaurants can also proactively minimise risks through preventative loss control tactics that can reduce policy claims. We recommend:

  • Driver Screening – Thoroughly vet driver candidates, checking licensing and history to only hire those demonstrating responsibility.
  • GPS Tracking – Install vehicle GPS to monitor driver behaviours like speeding and hard braking that signal higher accident likelihood so you can retrain or release risky couriers. 
  • Specialised Equipment – Utilise purpose-built carrying cases with stability features as safer transport options, reducing spilled containers in vehicles.

Making Deliveries a Success Story

Here at Brisco Business, we make securing coverage for your distinct delivery operation easy and affordable. Our insurance packages provide peace of mind so you can stay focused on food quality, timely deliveries and stellar service rather than worrying over accidents and incidents outside your control.

Contact us today to discuss protecting your restaurant’s future as you start satisfying off-premises customers and to get an obligation-free quote.

Dean Laming

Dean is a Chartered Insurance Broker with more than 25 years insurance experience. Through various underwriting, operational and management roles, Dean has built up extensive knowledge of how to run a business and is now Managing Director of Brisco Business, part of the wider Henry Seymour Group.

All articles by Dean Laming

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