Hired & Non-Owned Delivery Coverage

Hired and non-owned delivery coverage is a form of hired and non-owned auto (HNOA) liability tailored to restaurants and food businesses whose staff deliver orders in their own personal cars. When a pizza driver or delivery employee causes an at-fault crash, the injured party routinely sues the employer under the legal theory that the employee was acting in the course of business. The restaurant's general liability policy will not respond — it contains a broad auto exclusion — and the driver's personal auto policy is often the only coverage in place, which may be inadequate or may even deny the claim because the vehicle was used for commercial delivery.

For a small-business buyer, this is one of the most dangerous silent gaps in restaurant insurance. HNOA delivery coverage protects the business's liability, sitting excess over (or in the absence of) the driver's personal auto limits. It does not pay to repair the employee's own vehicle, and it does not extend to commercial auto exposures like company-owned vehicles — those need their own policy. Insurers price it on delivery volume, radius, and driver-vetting practices, and many now scrutinize whether the restaurant checks motor vehicle records before letting employees deliver.

The practical move is to confirm exactly how deliveries happen and buy to match. If employees use personal cars, add HNOA delivery coverage and set a limit high enough that a serious injury claim doesn't blow through it — pairing it with an umbrella is common. Verify whether the policy covers deliveries made through third-party apps, require drivers to carry adequate personal auto limits, and document a driver-screening process. Restaurants that own delivery vehicles or that rely heavily on driving should step up to a full commercial auto policy rather than leaning on HNOA alone.