PRODUCT: PizzaPro Pizza Delivery Program
COMPANY: AmWINS Program Underwriters
BEST RATING: A+ (Excellent)
AVAILABILITY: Coverage is available through independent agents and brokers.
FOCUS: Pizza is a huge business. About 93% of Americans eat at least one slice of pizza per month—and 83% of the more than 70,000 pizzerias in the U.S. offer delivery services, according to Statistic Brain.
This sizeable number means countless vehicles are frequently on the road making deliveries. But do pizzeria restaurant owners have the insurance necessary to protect themselves? Probably not.
Many independent restaurant owners put their businesses in jeopardy every day by not carrying a non-owned auto liability policy, which insures restaurants if a delivery driver has an accident, injures someone or damages property while using a personal vehicle on the job.
“When pizzeria operators forgo non-owned auto insurance, they are playing a very dangerous game,” says Keith George, managing director at AmWINS. “This usually happens when they think the delivery driver’s policy provides sufficient coverage.”
Without appropriate coverage, the financial impact can be devastating for a small business. In most cases, attorneys target deep pockets, so instead of going after employees, they go after business owners.
To protect restaurant owners from the potential fallout, AmWINS developed the PizzaPro Pizza Delivery Program—a policy which safeguards all owners in the event that the personal auto policies of their delivery drivers either deny coverage or do not afford sufficient limits to adequately cover the amount of any claims for damages.
According to George, these non-owned auto liability policies are always necessary. “If you are delivering a product via employees, you should carry this type of coverage at all times. And pizzerias not offering delivery service should also have this coverage if employees ever run errands using their personal vehicles,” he explains.
The only exception is if the restaurant owner uses a company-owned vehicle for all deliveries and errands, and insures these vehicles under a business auto policy.
UNDERWRITING: Coverages include hired and non-owned auto liability coverage; auto physical damage; a business owners policy form for property and general liability coverages; employment practices liability coverage; and umbrella coverage.
The policy does not cover an employee’s vehicle for any damage due to accidents, because the employee’s personal insurance should cover this exposure. Similarly, it does not cover any injury to the employee, which a workers compensation policy should address.
In order to qualify, an insured must have an established motor vehicle report—driving records obtained through the Department of Motor Vehicles in the home state. They must also have insurance monitoring and training procedures in place, as well as a minimum of five years of restaurant management experience.
Requirements include mandatory BOP and auto coverages, and three complete years of loss information for quoting.
MINIMUM PREMIUM: $2,900.
TARGET: Pizza and deli operations that provide delivery service.
COVERAGE TERRITORY: All U.S. states except New York.
CONTACT: Keith George, CPCU, managing director; AmWINS Program Underwriters, Inc., 214 Senate Avenue, Suite 201, Camp Hill, PA 17011; 717-214-7603.
Ronimarie Acord is an IA contributor.
