What is Non-Owned Auto/Pizza Franchisee Program?
The Non-Owned Auto/Pizza Franchisee Program is a specialized commercial auto insurance solution designed for pizza restaurant operators who use vehicles they do not own for business purposes. This includes employee-owned cars used for deliveries or errands on behalf of the franchise. The program helps address liability exposures when personal vehicles are used for commercial activities, a common scenario in the pizza delivery industry.
Non-owned auto liability coverage protects the business if an employee is involved in an accident while driving their own vehicle for work. While the employee’s personal insurance is typically primary, this policy provides additional protection for the franchisee against third-party claims.
Who needs it
This coverage is essential for pizza franchise operators—especially those affiliated with national chains like Domino’s—who rely on staff-owned vehicles for deliveries. It’s also relevant to small restaurant groups, independent operators, and franchisees who don’t maintain a fleet of commercial vehicles but still face transportation risks.
Even if your business doesn’t own vehicles, you may still be legally liable for accidents involving employees using their own cars for work. A single accident can lead to significant claims, making this coverage a key part of any risk management strategy for food delivery businesses.
What it typically covers
Non-owned auto insurance generally includes:
- Third-party bodily injury and property damage coverage
- Legal defense and court costs associated with covered claims
- Coverage for accidents that occur while employees use their personal vehicles for business tasks
For example, if a delivery driver rear-ends another vehicle while transporting food, the franchisee’s non-owned auto policy may help cover the resulting liability, after the driver’s insurance is exhausted.
Common exclusions or limitations
Some policies may exclude:
- Damage to the employee’s own vehicle
- Accidents involving non-permitted drivers
- Use of vehicles outside of approved business activities
- Coverage for owned or long-term leased vehicles
It’s important to review underwriting factors and policy language carefully to understand what is and isn’t covered.
Factors that influence cost
Several variables affect premium rates for non-owned auto coverage, including:
- Number of employees using personal vehicles
- Frequency and distance of delivery operations
- Loss history and prior claims
- Franchise location and traffic conditions
Insurers also consider risk management practices, such as driver screening and safety training, during underwriting.
Proof of insurance & compliance
Many franchisors require proof of non-owned auto liability insurance as part of the operating agreement. This documentation may also be needed for lease agreements, vendor contracts, or to satisfy state-level business requirements. Certificates of insurance (COIs) are typically issued by your agent or carrier upon binding coverage.
How to get a quote
Getting a quote for non-owned auto coverage is straightforward. Work with an agent who specializes in restaurant or pizza franchisee insurance programs. You’ll typically need to provide operational details, including number of locations, employee count, and delivery procedures. For a tailored assessment and competitive options, request a quote today.
For broader protection, many restaurant owners also consider bundling this with a restaurant/pizza franchisee insurance program or a pizza franchisee umbrella policy to cover additional liability exposures.
Frequently Asked Questions
Does this coverage apply if an employee uses their own car for deliveries?
Yes, non-owned auto insurance is specifically designed to cover liability when employees drive their personal vehicles for business purposes like deliveries or errands.
Is physical damage to the employee’s car covered?
No, this policy doesn’t cover damage to the employee’s vehicle. That would fall under the employee’s personal auto insurance.
Do I need this if I don’t own any vehicles?
Yes. Even if your business doesn’t own cars, you may still be legally liable for accidents involving employee-owned vehicles used for work.
Can I add this to my existing business policy?
In many cases, yes. Non-owned auto coverage can often be endorsed onto a general liability or business owner’s policy. Speak with your agent to confirm.
Does this meet Domino’s franchise insurance requirements?
Many Domino’s franchises require non-owned auto liability as part of their insurance obligations. Always verify specifics with your franchisor or broker.
Still have questions? Talk to a local insurance expert.