What is Hired Auto Liability/Pizza Franchisee Program?
The Hired Auto Liability/Pizza Franchisee Program is a specialized type of commercial auto insurance tailored for pizza delivery operations. It provides liability protection when franchise employees use personal, leased, or rented vehicles for business delivery purposes. Because many pizza franchises rely on non-owned vehicles for deliveries, this coverage helps protect the franchisee from potential legal and financial risks in the event of an accident.
Who Needs It
This program is designed for pizza franchise owners and operators who employ drivers using their own vehicles for deliveries. It is essential for:
- Franchisees of national or regional pizza chains
- Independent pizza shop owners with delivery services
- Restaurants that rely on employee or rented vehicles for deliveries
If your business involves delivery and does not provide company-owned vehicles, Hired Auto Liability insurance is typically a necessary layer of protection.
What It Typically Covers
Hired Auto Liability insurance usually provides coverage for:
- Third-party bodily injury and property damage caused by an employee while driving a non-owned vehicle for business
- Legal defense costs related to covered claims
- Supplemental court judgments or settlements related to covered incidents
This coverage can help protect the business entity from lawsuits and claims resulting from delivery-related accidents.
Common Exclusions and Limitations
While valuable, this coverage has some exclusions and limitations, including:
- Damage to the hired or non-owned vehicle itself (usually not covered)
- Accidents outside the scope of business use
- Drivers not authorized or properly licensed
- Intentional or criminal acts
Always review policy terms carefully and ensure drivers meet eligibility criteria.
Factors That Influence Cost
Several factors can affect the cost of a Hired Auto Liability policy, such as:
- Number of delivery drivers and vehicles used
- Frequency and distance of deliveries
- Driver driving records and training
- Business location and local risk factors
- Claims history
Work with an experienced agent to assess your risk profile and choose appropriate coverage levels.
Proof of Insurance & Compliance
Many franchisors require proof of Hired Auto Liability insurance as part of their operating agreement. In addition, some states or local governments may have specific insurance requirements for delivery operations. Having a valid certificate of insurance (COI) can help demonstrate compliance and protect your business from legal complications.
How to Get a Quote
To find the right Hired Auto Liability/Pizza Franchisee Program for your needs, compare coverage options and speak with a licensed agent who understands delivery business risks. Get a quote today to protect your franchise and meet your delivery insurance requirements.
Frequently Asked Questions
Is Hired Auto Liability required for all pizza delivery businesses?
While not always legally required, many franchisors and contracts mandate this coverage to reduce liability exposure from non-owned vehicle use.
Does this insurance cover damage to the delivery driver's personal vehicle?
No, Hired Auto Liability typically does not cover damage to the driver's own vehicle. Drivers should have personal auto insurance for that.
Can I add this coverage to an existing business policy?
Yes, many insurers offer it as an add-on to a commercial auto or general liability policy. Check with your provider for availability.
What happens if an uninsured driver causes an accident while delivering?
If the driver is working for your business and coverage is active, the Hired Auto Liability policy may help cover third-party damages, depending on the policy terms.
Does this policy apply to leased or rented vehicles used occasionally?
Yes, Hired Auto Liability can cover leased or rented vehicles used for business delivery, as long as they are not owned by the business.
Still have questions? Talk to a local insurance expert.