As the Coronavirus continues to spread across the country, most non-essential businesses are closed nationwide. Although dining in isn’t allowed, restaurants are still allowed to open since they are considered an essential business. Many restaurants are offering food delivery (even if they didn’t before) since it is allowed. Restaurants new to food delivery might need to purchase additional coverage with a Short-Term Food Delivery Insurance Policy.
It’s a whole new world of self -isolation and government-imposed quarantining. So, what does that mean for every-day life? Well, it’s completely changed as we know it. With that decision, many restaurants have revised their menus and implemented delivery to customers instead. Some are even selling their signature cocktails to-go.
However, what most businesses don’t realize is that allowing your employees to drive their cars to deliver food is not covered under their personal auto insurance. This is why a Short-Term Food Delivery Insurance policy may work for you or someone you know.
Insurance for Delivery Businesses During COVID-19
First off, to ease your mind a bit about potential liabilities, the FDA’s current position is that “there is no evidence to suggest that food produced in the United States can transmit COVID-19.” Furthermore, they went on to say that there is “no evidence of food or food packaging being associated with transmission of COVID-19.”
As always, as long as the food is prepared safely, the risk is low. Information around COVID-19 continues to change, but current evidence seems to point to food delivery as a less risky option than exposing yourself to a grocery store, bringing the bags and items into your home and preparing the food yourself.
Essentially, the major risk of dining within a restaurant is touching a table, counter, or other surface that someone who is contagious may have touched.
Because delivery businesses have become so important during this outbreak, it’s important for employers to get food delivery insurance.
New Short-Term Food Delivery Insurance Program
Whether offering food delivery is a permanent business change or temporary, we have access to a new program which is writing short-term food delivery insurance for restaurants.
This program is written by an A.M. Best rated “A” X carrier and can accommodate a wide range of classes that have been affected by COVID-19. To contact an ABI producer for more information, click here.
Product highlights include:
- Monoline coverage
- 3- or 6-month policy
- Quick turn-around time
- Non-auditable policy
- Limit options of $300K, $500K, $1M CSL
- Deductible $2,500
- Offering short term policies starting at $1,500
- MVR screening service provided
- Symbols 8 & 9 (hired and non-owned autos) commercial auto liability
- No restrictive warranties
- Available in all states except MI
Keeping Food Delivery Workers Safe
Many delivery companies have issued guidelines for workers during the outbreak, as Business Insider pointed out, and many of those same workers have taken additional precautions to keep themselves safe. Drivers and delivery workers for Uber, Lyft, and DoorDash told Business Insider they’re scouring their cars with bleach and cutting back on hours.
Even so, if you do opt for your restaurant to deliver food during the outbreak, consider implementing non-contact services. Also, advertise that you require your drivers to practice good hygiene, especially hand-washing. If you can, provide masks to your employees to protect themselves if they are not practicing contact-less delivery.