Deliver Success: Insurance Consideration for Takeout and Delivery December 07,2021

Takeout and delivery options aren't going away in 2022! Businesses should review their current insurance coverage to ensure that they are covered for “hired non-owned auto policies” if planning to conduct deliveries with their own staff, as opposed to using a third-party delivery service. 

The Colorado Division of Insurance (DOI) took action to protect Colorado insurance consumers and reduce insurance delays for restaurants and workers during the COVID-19 public health emergency.

 Our partners at Crest Restaurant Insurance explain: The State changed two pertinent coverage exclusions for delivery drivers:

  • The regulation removes the “commercial use” exclusion in a personal automobile policy. This essentially requires that personal automobile policies cannot exclude claims arising from commercial use of the vehicle.
  • The regulation removes the “unnamed driver” exclusion in a commercial automobile policy. This essentially makes any driver covered on a hired/non-owned policy.

This regulation expands coverage for individuals and restaurants who are adequately insured and acting in the course of employment/business operations.  

  • Please note these expanded conditions ONLY apply for employees whose job description did not include food delivery prior to March 17, 2020.
  • The commercial use (PL) and excluded driver (CL) exclusions would still be applicable if a driver was employed as a driver prior to March 17, 2020.
  • Restaurants still need hired/non-owned liability coverage if they are directly (or through a third party) delivering food. The State minimum for auto liability for licensed drivers is $25,000/$50,000. We still believe that business operators would be named in a bodily injury/property damage occurrence. Their H/NO policy is where they would be afforded defense coverage.
Please reach out to us at if you have any questions.

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