What is commercial auto insurance?

Commercial auto insurance is insurance coverage for vehicles used for business purposes, protecting against liability for accidents and physical damage to the vehicles.

What you need to know

If your restaurant owns delivery vehicles or employees use their personal cars for deliveries, catering transport, or supply runs, you need commercial auto coverage. Personal auto policies exclude business use.

Why it matters for restaurant owners

Food delivery is increasingly essential for restaurant revenue, but it creates major liability exposure. If your delivery driver causes a $500,000 accident, your business will be sued alongside the driver.

Essential coverage types:

• Non-owned auto liability (covering employee personal vehicles)
• Hired auto liability (covering rented vehicles)

Both should be included in your policy.

Critical warning: If using third-party delivery services like DoorDash, verify their insurance covers you adequately—it often doesn’t.