Operating a delivery-only pizza place comes with many challenges and rewards. It's not always easy to understand your insurance options, but it's crucial to get the right type of coverage for your business. An independent insurance agent can help.
An independent insurance agent can help you find the right coverage for your business and tailor it specifically to your needs. No matter what you specialize in, an independent insurance agent will help you shop multiple carriers to help find the right insurance to know your business is protected. But first, here's a bit more background on the insurance needs of your pizza shop.
What Types of Insurance Should a Pizza Delivery Place Have?
Depending on the location of your pizza place, your city or state may have ordinances in place requiring business owners to carry a certain type and amount of insurance. General liability insurance covers costs related to customers getting hurt on your property, your employees accidentally damaging someone else's property, and copyright infringement or reputational harm.
Commercial vehicle insurance
If you own vehicles that you use for business purposes, commercial auto insurance is a must. Providing delivery vehicles for your employees means you'll want an insurance policy that protects you and your business from financial harm in case there's an accident.
Driving is a dangerous activity, and it requires a specific type of insurance to mitigate financial losses that result from accidents.
The employment category of driving, sales work, and truck driving lands in sixth place among the most deadly occupations.
Hired and non-owned vehicle liability insurance
Even if your employees drive personal vehicles to make deliveries, it's smart to have a commercial auto insurance policy in place. Personal auto insurance typically covers incidents that happen while the insured person is using the vehicle for personal reasons.
With only personal auto insurance, the insurance company could refuse to pay for damages incurred while the driver was performing work-related duties. While it may cover the owner of the vehicle, it won't protect the pizza place.
What Are the Insurance Requirements for a Delivery-Only Pizza Place?
If your pizza place doesn't have a dining room and you don't serve customers on-site, you may think that you don't need some types of insurance. General liability insurance covers so many potentially financially devastating accidents that it's a must for small businesses.
If your employee accidentally damages a customer's property or a customer gets hurt while picking up their pizza, this type of insurance will pay for the damage.
Deciding which coverages and how much insurance you need is simpler with help from an expert independent insurance agent. Here are some types of insurance you may be required to carry:
Bank or lienholder insurance requirements
If you lease or finance your company vehicles, the bank must be listed on the insurance policy to protect their financial interests. If there's an accident, lien holders may require that a financed vehicle be repaired so as not to reduce its value. If the car or truck is totaled, the insurance company may issue a check to the bank for the car's fair market value, which could mean you won't have to make payments on an out-of-service or wrecked vehicle.
Franchise insurance requirements
There are many advantages to opening a franchised pizza shop. When you choose to buy a franchise, you'll get a turn-key operation with a high rate of success. In many cases, you don't need a lot of experience to run a franchise. You'll have ongoing support from management, training to help you operate the business, and an established marketing program.
During the first half of 2019, quick serve restaurants and casual dining restaurants were among the top ten biggest spenders on TV advertising.
For small, stand-alone pizza places, access to an established advertising plan is a great bonus.
There are also a number of non-negotiable rules that come with running a franchise. Many franchises require their restaurant owners to meet specific business insurance requirements.
You'll find the insurance guidelines clearly outlined in your franchise agreement. This is another area where your independent insurance agent can help you decide whether to go with the minimum amount of insurance required, or add more as your needs dictate.
How Can a Delivery-Only Pizza Place Insure Its Building and Contents?
Property insurance helps protect your building, it's content, your equipment, inventory, and fixtures. It may also provide coverage for records, paperwork, and accounts receivable that are lost when you suffer a covered event.
If you own your pizza place's building, talk with your independent insurance agent about whether to purchase replacement value insurance or cash value insurance. While replacement value coverage may cost a bit more, it could also allow to you rebuild without having to spend as much money out of pocket to get your pizza place back up and running.
Should a delivery-only pizza place get cyber liability insurance?
All businesses that process credit card payments are at risk for a security breach. Cyberattacks are on the rise. The Identity Theft Resource Center (ITRC) reports a 44.7% increase in security breaches with the majority of those incidents affecting businesses.
- 55% of all security breaches in 2017 directly affected businesses.
- 179 million records were exposed as a result of security breaches in 2017.
- 1,579 reported security breaches in 2017.
Cyber insurance is the insurance industry's response to a need for coverage. The financial consequences of a cyberattack are higher than many small businesses can handle on their own.
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Finding the Best Insurance for Your Pizza Delivery Shop
Business insurance policies can be complex, and searching through options can be confusing, time-consuming, and frustrating. An independent insurance agent's role is to simplify the process.
When it comes time to purchase insurance, they’ll break down all the jargon and explain the nitty-gritty so you understand exactly what you're getting.
And should you need to file a claim, you’re not alone. Your agent will be right there to help guide you through every last step and get your life back to where it all was. How great is that?
Benefits of an Independent Insurance Agent
Independent insurance agents have access to multiple insurance companies, ultimately finding you the best coverage, accessibility, and competitive pricing while working for you. So instead of searching around from company to company, your agent can help simplify the whole process and let you focus on the business side.
Find an independent insurance agent in your community here.
TrustedChoice.com Article | Reviewed by Alexander Dopazo - Insurance Agent
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