Pizza Delivery Liability

[Little Joe]

 I would like to offer pizza delivery for my store. Obviously, liability is a huge issue. Any suggestions on how to cover myself or where to go for insurance would be appreciated. Thankyou.

[TXCraig1]

You really should seek advice from a lawyer not some random people on a pizza forum.

[Don K]

Craig is right you should consult an attorney. I am not an attorney but I stayed at a Holiday Inn Express once.

One of the drivers for a shop that I used to work for was at fault in an accident and unfortunately for him the father of the other vehicle's driver was a lawyer. The driver only had the state minimum insurance coverage, so the lawyer went after the shop for the rest of the "medical bills," "pain and suffering," and all of the other BS that they sue for. It ended up costing the shop something like $50K which was a devastating blow.

So, IMO it would be wise to require that your drivers carry a minimum of liability coverage that is much higher than your state requires. I think that here in Ohio the minimum coverage is only $12,500.

Another thing that can be done is to hire your drivers as independent contractors instead of making them employees. This can insulate your company from the liability. The laws regarding this probably vary state to state, so you really need to talk to an attorney.

[Pete-zza]

Little Joe,

This is a subject that comes up fairly often at the PMQ Think Tank (http://thinktank.pmq.com/viewforum.php?f=6), where mostly professional pizza operators visit. You might want to do an archive search using terms like driver liability insurance. If you register, you can also ask questions.

Peter

[Don K]

...and another thing...

Don't offer customers any guarantees of delivery time. If they can convince a jury that there was any pressure at all placed on the driver to rush, you could be screwed. That's why Domino's doesn't do their 30-minutes or free thing anymore.

[writerlilly]

Good advice, folks. When it comes to running a pizza business, you have to take into account all types of considerations. With today's economy, imagine the kind of things people would do for money.

[TXCraig1]

Good advice, folks. When it comes to running a pizza business, you have to take into account all types of considerations. With today's economy, imagine the kind of things people would do for money.

I doesn't take much imagination. Just open the news paper...

[Chicago Bob]

I doesn't take much imagination. Just open the news paper...

That's right...don't forget you could also possibly be hiring someone looking to set you up. It's tricky out there ....

[Da pizza man]

I went to my State Farm agent and told them I am da pizza man, for an extra $25 every 6 months I was covered. that was when i worked for someone else. Now that I own my own pizza place and need to hire drivers this is a big concern. I want to get insurance out from under the table.
 This is my first day in this forum, lets go.

[Chicago Bob]

I went to my State Farm agent and told them I am da pizza man, for an extra $25 every 6 months I was covered. that was when i worked for someone else. Now that I own my own pizza place and need to hire drivers this is a big concern. I want to get insurance out from under the table.
 This is my first day in this forum, lets go.

Been a long day hasn't it? 

[trosenberg]

OK I wasn't going to chime in but couldn't help myself.   I support my pizza habit by practicing law specifically personal injury law. I am most familiar with NY law since that is where I practice but in most jurisdictions a business owner is responsible for the negligence of his employees. If you operate a business that delivers any product you must make sure you have adequate insurance limits for this risk. If one of your drivers seriously injures someone you don't want to be put out of business.  Perhaps more importantly you may want to be able to sleep with a clear conscience if you or an employee inadvertently cause someone to be seriously injured.

I realize that the popular perception is that most everyone is out to scam the insurance companies; my 30 years of experience in the field has taught me that the vast majority of people who are in auto accidents really didn't want to be hit and hurt.  There are malingerers who have nothing better to do but the vast majority of folks are like you & I, they want to be healthy, go to work, pay their bills, have insurance companies treat them fairly  and be left alone.   

(you can use that IGNORE button now! )

 

[TXCraig1]

I realize that the popular perception is that most everyone is out to scam the insurance companies;

No. Just the trial lawyers.  

[Don K]

From reports that I heard from the accident that I mentioned above, the young lady that was the other driver seemed fine at the scene, other than being a little scared. It wasn't until her father the lawyer got involved that her injuries got much worse. By the time they ended up in court, she was nearly crippled. There was suspicion that the doctor was in cahoots with the father/lawyer.

@trosenberg - What about what I mentioned about not actually making your drivers employees of the company, but instead hire them as independent contractors. Does this insulate the company from liability?

[thezaman]

 if you can find another way to increase sales stay far away.the pizza will suffer in quality, it is expensive to deliver the pies,especially the amount of liability insurance needed to protect yourself. it went from being 40 percent of my business to 5  percent. dominos, pizza hut and east of chicago can fight over 6.00 pies. i am lucky i have a dinning room that seats 85,that plus carryout are my focus.

[trosenberg]

I wouldn't rely upon making your drivers "independent contractors" as opposed to employees.  The courts will generally look to see if they are treated as true independent contractors or not.  If you are telling them when to show up for work, paying them by the hour, they will be deemed your employees no matter what you call them. 

As far as people acting like they are hurt when they aren't, of course that happens. But 95% of the people who come to see me say "I'm not the type of person who sues but.... and then tell me how their lives have been turned upside down by someone else's carelessness.  The truth is most people are not scam artists.  The other truth is that most insurance companies don't treat folks right.  If insurance companies wanted to put guys like me out of business they could go to everyone who was in an accident say they were sorry and assure them they would pay all damages.  They don't. 

TXCraig1 I have the utmost respect for your culinary skills, taste in wine, steaks, fishing, you name it.   I generally am a lurker but I read all your posts.  (I am drinking a Moshin Pinot Halo Hill 2010, it's not a Rochiolli West Block but it will do)  I acknowledge you know how to cook chicken, which isn't as easy as everyone thinks, but I have to tell you as a trial lawyer I take umbrage.  Everyone hates us until their kid is run down by a drunk driver or their wife is injured by someone's carelessness.   There are crooked lawyers, quack doctors, evil guys on Wall Street and I am sure there are bad guys in whatever line of work you are in, hell I hear that there are even pizza guys that are no good,  but Trial Lawyer is a badge I wear proudly.  That being said if I could make a living making pizza maybe I'd give it up ...but there is a lot of competition her on Long Island.   

[Tscarborough]

Forget independent contractor, that won't fly and I don't even need to be a lawyer to tell you that.  You need to make sure that A) Your drivers are legally competent B) Carry personal insurance C) You document your driver safety programs, including substance abuse policy D) Make sure your business liability is both sufficient and current.

[Chicago Bob]

I wouldn't rely upon making your drivers "independent contractors" as opposed to employees.  The courts will generally look to see if they are treated as true independent contractors or not.  If you are telling them when to show up for work, paying them by the hour, they will be deemed your employees no matter what you call them. 

As far as people acting like they are hurt when they aren't, of course that happens. But 95% of the people who come to see me say "I'm not the type of person who sues but.... and then tell me how their lives have been turned upside down by someone else's carelessness.  The truth is most people are not scam artists.  The other truth is that most insurance companies don't treat folks right.  If insurance companies wanted to put guys like me out of business they could go to everyone who was in an accident say they were sorry and assure them they would pay all damages.  They don't. 

TXCraig1 I have the utmost respect for your culinary skills, taste in wine, steaks, fishing, you name it.   I generally am a lurker but I read all your posts.  (I am drinking a Moshin Pinot Halo Hill 2010, it's not a Rochiolli West Block but it will do)  I acknowledge you know how to cook chicken, which isn't as easy as everyone thinks, but I have to tell you as a trial lawyer I take umbrage.  Everyone hates us until their kid is run down by a drunk driver or their wife is injured by someone's carelessness.   There are crooked lawyers, quack doctors, evil guys on Wall Street and I am sure there are bad guys in whatever line of work you are in, hell I hear that there are even pizza guys that are no good,  but Trial Lawyer is a badge I wear proudly.  That being said if I could make a living making pizza maybe I'd give it up ...but there is a lot of competition her on Long Island.   

I like the way you think and, more importantly, the way you express your beliefs. My father was also an Attourney....there ARE honest, genuine men out there in all walks of life. Thanks for reiterating that trosenberg.

Robert

[patnugent]

I would hate to be either a pizza man or an attorney on Long Island...  Thats why I am a photographer and moved to weschester working in Manhattan(dealing mostly with big law/bank in the city)

Long island has a good slice game, but for a solid sit down place outside of a strip mall, it's lacking.

[Chicago Bob]

Well...haven't seen Mr. Nugent for a coupla weeks. Good to see you back posting friend....I like the perspective you you bring to your camera's eye....

[patnugent]

i'm always lurking, haha.  just dont get to cook as much as i'd like and dont feel like i should be commenting when i'm not cooking it.
however, as a young person who still has options, a pizza business is at or near the top of the list for my wife and I.  ties with a pet business(she does dog grooming as we are both animal people in general)