Even restaurants that don’t own a single delivery van put people on the road every week. An employee runs to the supplier for a last-minute produce order. A team member drives their own car to drop off a catering tray. A staffer uses a rented box truck for a big event. Each of those trips can create liability your business may not realize it’s carrying — and that’s where hired and non-owned auto insurance comes in.

In this blog, the team at Restaurant Pro Insurance will explain how hired and non-owned auto coverage works, when restaurants may need it, and what can happen when an employee uses a personal or rented vehicle for business purposes. 

What Hired and Non-Owned Auto Coverage Actually Means

The name covers two related situations:

  • Hired auto applies to vehicles your business rents, leases, or borrows — like that box truck for a catering job.
  • Non-owned auto applies to vehicles your business doesn’t own but uses for work — most commonly an employee’s personal car driven for a delivery or supply run.

Together, this coverage is designed to help protect your restaurant if an employee causes an accident while driving for business purposes.

Why Personal Auto Policies May Leave You Exposed

Here’s the part that surprises many owners: an employee’s personal auto policy may not fully respond when they’re driving for work. Some personal policies limit or exclude business use. If an employee causes a serious accident during a delivery, the injured party may look beyond the driver — to your restaurant.

Without the right coverage, your business could face claims for bodily injury and property damage that your general liability policy wasn’t built to handle.

Situations Where This Coverage Matters

  • In-house delivery — staff delivering orders in their own cars
  • Catering and off-site events — transporting food, equipment, and supplies
  • Supply runs — quick trips to a wholesaler, market, or hardware store
  • Rented vehicles — box trucks or vans for large orders and events

If your restaurant does catering or off-premise work, this coverage is especially worth reviewing — something our team regularly discusses with multi-unit and franchise operators who move product between locations.

What About Third-Party Delivery Apps?

When a customer orders through a third-party delivery platform, that driver is usually working under the platform’s arrangement rather than yours. But the moment your own employees hit the road for the business, the responsibility shifts back toward your restaurant. If you use a mix of both, it’s worth mapping out exactly who is driving, when, and in what vehicle.

Frequently Asked Questions

Even occasional business driving can create liability. Because non-owned auto coverage is often affordable relative to the exposure, many restaurants add it as a safeguard.

Generally no — it’s liability coverage that protects your business from claims by others, not physical damage to the employee’s personal vehicle. Reviewing the specifics with an agent is the best way to understand the limits.

Not quite. Commercial auto typically covers vehicles the business owns. Hired and non-owned coverage fills the gap for rented and personal vehicles used for work.

Keep Every Trip Covered

Deliveries, catering, and supply runs keep your restaurant moving — but they also put your business on the road in ways a standard policy may not anticipate.

Reach out to Restaurant Pro Insurance, and we’ll help you review how your team drives for work and whether hired and non-owned auto coverage belongs in your policy.