Many insurance companies are figuring out creative ways to help their clients during this Coronavirus pandemic. Several modifications, enhancements, and allowances have been made by many different companies. We are doing our best to outline each company's stance on allowing employees to use their personal autos to make restaurant deliveries (not for a service such as UberEats or DoorDash), but straight from the restaurant. Other deliveries such as medication and other goods are also permissible under these guidelines. This coverage is commonly known as Non-Owned Auto Liability.
Keep in mind, this page pertains to Commercial (Business) Auto policies and how coverage would apply to protect a Business Entity/Business Owner. An employee driving his/her personal auto for business, should have his/her own personal auto insurance policy to ensure he/she is covered for liability and physical damage that may occur to his/her vehicle.
Business owners must have a signed agreement with their employees who are using his/her personal autos for delivery. The agreement must outline the conditions under which the driver conducts him/herself while operating a company-owned or personal vehicle to deliver food (or goods) for the business. This agreement should contain the following elements:
- Maintenance of a valid driver’s license.
- The driver will follow all traffic regulations and speed limits.
- No non-employee passengers will be allowed in the vehicle when used for business purposes.
- No eating or drinking while the vehicle is in motion.
- No cell phone usage, including calls and texts, while the vehicle is in motion.
- Cell phones may be used for navigation, but driver must pull over to enter address or change route.
- Promptly report all accidents to the employer.
- For personal vehicles, the driver will maintain a minimum of $100,000/$300,000/$50,000 liability limits, or a $300,000 Combined Single Limit on their personal auto policy.
Grange Mutual also outlined "Delivery Driver Etiquette". This document can be found here or in our "Important Files" section of our website.
Clients looking for this coverage must contact our agency, so we can review the particular guidelines pertaining to your policy. The companies that are temporarily allowing employee deliveries while a Stay-At-Home Order is mandated are:
Encova (formally Motorists Mutual) - they are allowing non-owned auto delivery, except for pizza restaurants. Please note that coverage would NOT extend to a Commercial Umbrella Policy and there is NO physical damage coverage for the Employee's vehicle. (This may be covered by the employee's Personal Auto Policy.) Coverage must be requested.
Frankenmuth Mutual - they are allowing non-owned auto delivery. The signed agreement mentioned above must be in place and coverage must be requested.
Liberty Mutual - they are allowing non-owned auto delivery. The driver must be at least 18 years or older, have no more than one serious violation in the past 3 years, maintain an in-force auto policy with the limits mentioned in #8 above. Coverage must be requested.
Selective Insurance - For current customers who have started delivery service for their business, as a result of any governmental directive, Selective can help you understand and insure this additional but temporary exposure. Contact our agency to discuss your coverage options. Coverage under your Commercial Auto policy will be excess of your employee driver’s personal auto insurance.
West Bend Insurance - they are allowing non-owned auto delivery, but it must be approved by an underwriter first.
PLEASE CONTACT OUR AGENCY IF YOU ALLOW OR ARE CONSIDERING TO ALLOW YOUR EMPLOYEES TO USE THEIR PERSONAL VEHICLES TO MAKE DELIVERIES; WHETHER YOU DO THIS JUST DURING THE STAY-AT-HOME ORDER OR AS PART OF YOUR NORMAL BUSINESS OPERATIONS.
***Please note that these updates can change day by day and we are providing this information to you, to the best of our knowledge. This is not a comprehensive list of our companies. We tried to highlight the most common instances where this coverage may be needed. We suggest that you sign up with your company online and/or mobile app so you can have up to date notifications of coverage changes and assistance.
Etler Kettenacker Agency is working remotely but we are here for you when you need us!
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