Pizza Delivery - No Coverage

There is no way to sugar coat this one, folks.  Better to find this out before than after your 17-year old son causes an accident while delivering pizzas in your vehicle.  

The standard Personal Auto policy excludes liability "arising out of the ownership or operation of a vehicle while it is being used as a public or livery conveyance."

The definition of "Public or Livery conveyance" is: "The transporting of people and/or goods for hire, such as by a taxi service, motor carrier, or a delivery service."

Therefore, no coverage.  Nothing.  Zero.  Zilch.

Some individuals may think that since this type of food delivery is a minimal "sideline business", there may be coverage.  However, the policy specifically excludes all liability coverage resulting from the ownership or operation of a vehicle while it is being used to transport goods for hire.

Just last month, a Louisville, Kentucky family found themselves uninsured when Dad took a second job to deliver pizzas.  No coverage.

This delivery exclusion applies not only to pizza delivery but to newspaper delivery, home pharmacy deliveries - anytime you are transporting for hire.

As the risk manager of your household, there are a few solutions.  

• One technique of risk management is avoidance.  Sorry, Junior,  you can't take the job.  
• Another risk management technique is transfer.  Ask the pizza business owner to provide insurance or, better yet, provide the delivery vehicle.   
• A less popular risk management approach is to accept the risk of an accident occurring and budget accordingly.  (ouch!)

Discuss all personal insurance situations with your own Trusted Choice Agent during your annual review.  As issues arise during the year, feel free to contact your agent as part of your personal risk management team.  

The risk management technique of retention can be very costly when it comes to an auto liability claim.  Is your pocketbook able to deliver?