For that “insured’s” liability arising out of the ownership or operation of a vehicle while it is being used as a public or livery conveyance.ĭoes an employee delivering food qualify as either public or livery conveyance? If it does, the PAP provides no coverage. We do not provide Liability Coverage for any “insured”:ĥ. The applicable part of this exclusion reads:Ī. Public or Livery Conveyance Exclusions: This exclusion may have more teeth.

The PAP excludes the use of an auto when being used in an auto-related business (sales, service, repair, etc.), unless the car is owned by the named insured, a family member or others provided the car is listed on the PAP. Whether the PAP provides liability coverage for food delivery is a function of two exclusions: the business use exclusion and/or the public or livery conveyance exclusion.īusiness Use Exclusion: The business use exclusion is a non-factor in this discussion. The focus here is solely on food delivery by the employee of a restaurant. Does the personal auto policy cover pizza delivery or delivery of any kind of food? Note that as we answer this question in light of the current “pandemic panic” situation, we are completely ignoring Grub Hub, Uber Eats and every other such app-based food delivery service. Who is covered by the BAP, if coverage is provided?ĭecades ago pizza and maybe Chinese food delivery began the PAP’s delivery coverage debate.Is coverage provided by the business auto policy (BAP) for employees using their personally-owned autos for food delivery?.Is there liability coverage in the personal auto policy (PAP) for food delivery?.The questions that must be answered include: Let’s begin by looking at the reality of coverage when the employee is using his or her personal auto to make deliveries for the restaurant. The more complicated answer is, yes, the restaurant is covered, but is coverage adequate for the insured and the employee? The simple answer is, yes, the restaurant is covered for its auto liability exposure – well, maybe there is coverage. What appears to be such a simple question “simply” isn’t. So, the new most-common question agents receive, “Am I covered for delivery?” Restaurants in these states are limited to take out or delivery.ĭelivery is a new concept for most of the restaurants effected by this regulatory action. These questions cannot be classed simply as personal auto or business auto questions because the most common question involves both policies.Īs of this writing, 21 states (California, Colorado, Connecticut, Illinois, Indiana, Iowa, Kentucky, Maryland, Massachusetts, Michigan, Minnesota, New Jersey, New York, North Carolina, Ohio, Oregon, Pennsylvania, Rhode Island, South Carolina, Vermont and Washington) have shut down restaurants and bars to in-house dining. Over the last several days the VU has fielded several auto insurance related questions.

Grundy public or livery conveyance.