Do Delivery Drivers Have Insurance from Restaurants?
What Every Restaurant Owner Needs to Know
In today’s fast-paced, on-demand dining world, delivery is no longer a luxury—it’s a necessity. Whether you’re running a local diner, a growing franchise, or a high-traffic bar and grill, delivery drivers are a crucial part of your operation. But this raises an important question:
Do delivery drivers have insurance from restaurants?
The answer isn’t always straightforward. It depends on your business model, the type of insurance coverage you carry, and whether your drivers are employees or independent contractors.
Understanding the Risk: Why Delivery Driver Insurance Matters
When food delivery is part of your service, your restaurant may be held liable for accidents caused by delivery drivers—even if they’re using their own vehicles. Without proper coverage, one delivery mishap could cost your business thousands in legal fees, medical expenses, or property damage claims.
This is where bars and restaurants insurance becomes essential, especially if your business is offering in-house delivery rather than relying on third-party platforms.
Are Delivery Drivers Automatically Covered by Restaurant Insurance?
Generally, standard restaurant insurance policies—like general liability or property insurance—do not cover auto-related incidents. For delivery coverage, restaurants typically need:
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Commercial Auto Insurance – For company-owned vehicles.
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Hired and Non-Owned Auto Insurance (HNOA) – Covers liability for employees using personal vehicles for deliveries.
Whether you’re purchasing franchise restaurant insurance or a policy for a single-location bar or café, make sure your plan includes auto liability protection if you employ delivery drivers.
Independent Contractors vs. Employees
Many restaurants partner with independent drivers or third-party platforms like DoorDash or Uber Eats. In those cases:
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The third-party platform often provides limited liability coverage.
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Your business might still be held responsible if negligence is proven.
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Some states require restaurants to verify insurance coverage for gig drivers.
For employee drivers using their own vehicles, HNOA coverage is a must. This is often bundled into specialized franchise restaurant insurance programs or can be added as an endorsement to your existing plan.
How Much Does Insurance Cost for Delivery Coverage?
You’re likely asking:
How much does insurance cost for a restaurant with delivery drivers?
On average, delivery-related coverage adds $400–$2,000 per year to your overall policy, depending on:
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Location (e.g., Georgia restaurant insurance rates)
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Number of drivers
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Vehicle usage
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Claims history
How much is insurance for restaurants overall?
Restaurant owners typically pay between $2,000 and $8,000 annually for a complete insurance package, which may include:
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General Liability
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Commercial Property
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Workers’ Compensation
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HNOA Coverage
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EPLI (Employment Practices Liability Insurance)
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Health insurance for restaurant owners and employees
So, how much insurance does a restaurant need? That depends on your risk exposure, the services you offer, and whether you’re running a franchise or an independent location.
Do Franchise Restaurants Cover Delivery Insurance?
Yes—most franchise restaurant insurance programs include delivery-related liability coverage. However, coverage can vary depending on the franchise agreement, state regulations, and your insurance provider.
For example, GEICO restaurant insurance may offer add-on policies for delivery-based businesses, while some franchises require owners to work with specific providers to ensure compliance.
Best Practices for Insuring Delivery Drivers
To protect your restaurant and your delivery team, follow these steps:
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Review your current restaurant insurance policy to identify coverage gaps.
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Add Hired & Non-Owned Auto Insurance if drivers use their personal vehicles.
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Verify driver licenses and personal auto insurance regularly.
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Choose insurance providers that specialize in the food service industry, especially if you’re a franchisee.
Whether you’re in Georgia searching for Georgia restaurant insurance or managing a national brand, your delivery operation should be insured as carefully as your kitchen.
Final Thoughts
In the food service industry, delivery isn’t just an added service—it’s a liability zone that must be managed with proper insurance. While delivery drivers aren’t always automatically covered under standard bars and restaurants insurance, there are affordable and effective ways to ensure your drivers—and your business—are protected.
If you’re unsure whether your current policy is sufficient, consult a provider experienced in franchise restaurant insurance or a broker that understands GEICO restaurant insurance options and regional requirements.