Restaurants that operate delivery vehicles, catering vans, food trucks, or send employees on errands need commercial auto insurance — personal auto policies exclude business use, leaving owners personally exposed. A typical restaurant commercial auto policy runs $1,500–$4,500 per vehicle annually, with higher premiums for active delivery fleets. Who this is for: restaurant owners, operators, and managers purchasing or renewing vehicle coverage for any vehicle used in business operations.
TL;DR — Key Takeaways
- Personal auto policies contain a livery/commercial use exclusion that voids coverage the moment a vehicle is used for business deliveries or catering runs.
- Restaurants using employees' personal cars for delivery need Hired and Non-Owned Auto (HNOA) liability — this is a separate coverage from commercial auto and is frequently overlooked.
- Minimum state-required liability limits are almost always too low for a restaurant operation; most lenders and landlords require at least $1,000,000 Combined Single Limit (CSL).
- Food trucks require both commercial auto coverage and a separate inland marine or mobile food unit policy for the cooking equipment.
- Adding drivers with poor MVRs (Motor Vehicle Records) can increase restaurant fleet premiums by 20–50% or trigger carrier non-renewal.
What Does Commercial Auto Insurance Cover for a Restaurant?
Commercial auto insurance for restaurants covers liability and physical damage for vehicles owned or operated in the course of business. The policy structure mirrors a personal auto policy but is underwritten on business-use classifications and typically offers higher available limits.
| Coverage Component | What It Pays | Typical Limit Range |
|---|---|---|
| Bodily Injury & Property Damage Liability | Third-party injuries and property damage caused by your vehicle | $500,000–$1,000,000 CSL |
| Hired Auto Liability | Liability when you rent or lease a vehicle | Matches primary limit |
| Non-Owned Auto Liability (HNOA) | Liability when employees use their personal vehicles for business | $500,000–$1,000,000 CSL |
| Collision | Damage to your vehicle from a collision | ACV or stated value |
| Comprehensive | Non-collision damage (theft, fire, weather) | ACV or stated value |
| Medical Payments / PIP | Occupant medical expenses regardless of fault | $5,000–$25,000 per person |
| Uninsured/Underinsured Motorist (UM/UIM) | Covers your vehicle/occupants hit by an uninsured driver | Matches liability limit |
| Roadside Assistance / Rental Reimbursement | Towing, temporary replacement vehicle | Optional endorsement |
Note on ACV vs. Replacement Cost: Most commercial auto policies settle physical damage on an Actual Cash Value (ACV) basis — meaning depreciation is applied. Agreed Value or Stated Value endorsements are available for newer or specialty vehicles like refrigerated vans.
Why Personal Auto Won't Cover Your Restaurant Deliveries
Nearly every personal auto policy sold in the United States contains a business use exclusion (sometimes called a livery exclusion). Under this exclusion, the policy does not apply to bodily injury or property damage arising from the use of a vehicle to carry persons or property for a fee, or for any regular business purpose.
Common restaurant scenarios that trigger the exclusion: - An employee drives their own car to make pizza deliveries. - The owner uses their personal truck to pick up supplies from a restaurant depot. - A manager drives a company van to deliver a catering order. - A food truck owner drives the truck between service locations.
In each case, a personal auto insurer can — and routinely does — deny the claim after discovering the vehicle was used for business. The denial can leave the restaurant owner personally liable for all damages.
Hired and Non-Owned Auto (HNOA): The Coverage Most Restaurants Miss
HNOA extends liability coverage to your restaurant for accidents involving vehicles you neither own nor lease:
- Hired Auto: vehicles you rent for business use (a cargo van rented for a catering weekend, for example).
- Non-Owned Auto: personally-owned vehicles driven by employees on restaurant business — the most common gap for delivery operations.
HNOA does not pay for physical damage to the employee's vehicle; it covers only the liability your business faces if that employee causes an accident while on the clock. HNOA is typically available as an endorsement on a Business Auto Policy (BAP) or as a standalone policy for restaurants that have no owned fleet.
Cost of HNOA standalone (illustrative range): $400–$900 per year depending on the number of drivers, delivery volume, and territory.
What Factors Drive Restaurant Commercial Auto Premiums?
| Rating Factor | Impact on Premium | Notes |
|---|---|---|
| Number of vehicles | Increases with each unit | Multi-vehicle discounts available at 3+ vehicles |
| Vehicle type / GVW | Heavier vehicles cost more | Cargo vans >10,000 lbs may require DOT filing |
| Driver MVRs | DUI/at-fault accidents can add 30–80% | Carriers run MVRs annually at renewal |
| Radius of operations | Wider radius = higher premium | Local delivery (under 50 miles) rated separately from regional |
| Annual mileage per vehicle | More miles = more exposure | Estimated at binding; subject to audit |
| Use classification | Delivery > service > commute | Delivery fleets rated as highest-use |
| Deductible | Higher deductible reduces premium | Common range: $500–$5,000 per occurrence |
| Loss history (3–5 years) | Prior at-fault claims raise rates | Clean history earns preferred tier pricing |
| Safety programs / telematics | Can reduce premium 5–15% | Some carriers offer usage-based programs |
How to Get Commercial Auto Coverage for Your Restaurant in 5 Steps
-
Inventory every vehicle and driver. List all owned, leased, or regularly borrowed vehicles by VIN. Collect driver's license numbers and dates of birth for every employee who drives on behalf of the restaurant — carriers will pull MVRs on all listed drivers.
-
Determine your coverage needs. Decide whether you need owned-auto only, HNOA, or a combination. If you have a food truck, note that it requires separate endorsements or a second policy for the cooking equipment.
-
Gather your business information. Carriers will ask for annual gross revenue, number of vehicles, estimated annual mileage per vehicle, delivery radius, and three to five years of loss runs.
-
Request quotes from multiple carriers. An independent agent can access specialty markets that standard personal-lines insurers cannot. Delivery-focused restaurants and food trucks often end up with specialty commercial auto programs rather than standard ISO forms.
-
Bind coverage and issue Certificates of Insurance (COIs). Landlords, franchise agreements, event venues, and commercial clients frequently require a certificate naming them as an Additional Insured. Confirm COI turnaround time with your agent before binding — same-day issuance is standard at Morrow.
Real-World Example: Catering Company Delivery Fleet, Texas
This scenario is illustrative and does not represent a guarantee of specific premiums or outcomes.
The operation: A full-service catering company operating out of Austin, TX with three owned cargo vans (each under 10,000 lbs GVW) and six delivery drivers. Annual mileage: approximately 45,000 miles across all vehicles. Delivery radius: 75 miles. No prior at-fault claims in five years. One driver has a speeding ticket from three years ago.
Estimated annual premium: - Commercial auto liability ($1,000,000 CSL): ~$3,200/year for three vehicles - Physical damage (collision + comprehensive, ACV basis, $1,000 deductible): ~$1,800/year - HNOA endorsement (covers additional personal vehicles used for overflow deliveries): ~$600/year - Estimated total: ~$5,600/year for the full program
Key coverage decisions: The owner elected a $1,000 collision deductible to reduce premium. HNOA was added because two drivers occasionally use personal vehicles for last-mile catering drops. The owner declined rental reimbursement since the business owns three vans.
Texas-specific note: Texas requires every business vehicle to carry at least the state minimum auto liability limits (currently 30/60/25), but it does not mandate the higher commercial-specific limits that apply to for-hire motor carriers. In this case the owner's equipment lender required $1,000,000 CSL as a loan condition, and the event venues required the same limit on their vendor agreements.
Frequently Asked Questions
Does my restaurant need commercial auto if we only use a delivery vehicle occasionally? Yes. Frequency of business use does not affect the exclusion in a personal auto policy. Even a single delivery in a personal vehicle can void coverage in the event of an at-fault accident. Any vehicle used for business purposes should be scheduled on a commercial auto policy or covered under an HNOA endorsement.
Are third-party delivery drivers (DoorDash, Uber Eats) my liability? Generally, no — drivers using app-based platforms carry their own commercial or rideshare coverage through those platforms. However, if your restaurant employs in-house delivery drivers or uses a hybrid model (app plus in-house), you need your own commercial auto and HNOA coverage for the in-house component. Confirm with your agent how your specific delivery model is classified.
How much commercial auto insurance does a restaurant need? Most restaurant operators should carry a minimum of $1,000,000 Combined Single Limit (CSL). Contract requirements from landlords, food distributors, and event venues commonly specify this threshold. Restaurants with larger fleets or higher-value catering contracts should discuss umbrella/excess liability with their broker, which can extend limits to $2–5 million for a relatively low additional premium.
What is a Certificate of Insurance and how quickly can I get one? A Certificate of Insurance (COI) is a one-page document summarizing your active coverage — limits, carriers, policy numbers, and effective dates. It is not an insurance policy and does not extend coverage, but it satisfies third-party proof-of-insurance requirements. Morrow can typically issue COIs same-business-day upon request.
Does a food truck need commercial auto insurance? Yes. A food truck is a motor vehicle and requires commercial auto coverage while being driven. However, the cooking equipment, generators, and food inventory inside the truck are typically excluded from a commercial auto policy. A separate inland marine policy or mobile food unit endorsement covers the equipment while the truck is stationary at service locations.
What happens if an employee gets into an accident in their personal car while making a delivery for me? The employee's personal auto insurer will likely deny the claim under their commercial use exclusion. Your HNOA coverage would then respond for the liability your business faces from that accident. Your employee would be left without physical damage coverage for their own vehicle — this is why restaurant owners should communicate this risk to employees who use personal vehicles for business and consider compensating accordingly.
Can I add a new driver to my commercial auto policy mid-term? Yes. Most commercial auto policies allow mid-term driver additions. The carrier will pull the new driver's MVR and may adjust the premium if the driver has a poor record. Some carriers require all drivers to be listed and approved before they operate a business vehicle.
Are delivery vehicles rated differently than service vehicles? Yes. Insurers classify vehicle use at the time of underwriting. Delivery use (carrying goods to customers) is rated at a higher exposure level than service use (driving to job sites) or commercial use (driving to/from a business location). Misclassifying a delivery vehicle as a service vehicle is a material misrepresentation that can void coverage at claim time.
Why Morrow for Restaurant Commercial Auto
-
Independent agency, multiple carriers. Morrow is an independent commercial P&C agency that places restaurant auto with multiple admitted and specialty carriers — not a captive agent limited to one market. That means competitive quotes across programs that understand delivery operations, food trucks, and catering fleets.
-
Restaurant industry specialization. Morrow works across the hospitality vertical and understands how delivery operations, food trucks, and catering models affect underwriting. We know which carriers rate HNOA favorably for mixed delivery models and which exclude it.
-
Same-day COI issuance. Vendor agreements, event venues, and commercial landlords routinely need certificates on short notice. Morrow issues COIs same business day for active policyholders.
-
Claims advocacy. If a delivery driver is in an at-fault accident and the carrier initially values the third-party vehicle below market, Morrow's team advocates directly with the adjuster on your behalf — we don't disappear after binding.
-
Annual fleet reviews. Driver rosters, vehicle lists, and delivery radius can change fast in a restaurant operation. Morrow conducts annual policy reviews to prevent mid-term gaps or surprise premium audits at renewal.
Get a Quote for Your Restaurant's Commercial Auto
Ready to protect your delivery fleet or catering vehicles?
Request a commercial auto quote from Morrow — most restaurants receive bindable quotes within one business day.
Or call us directly: [Morrow to confirm phone number]
Trust strip: Morrow (Afthonea Inc, DBA Morrow) is a licensed independent commercial insurance agency. [Morrow to confirm licensed states and NPN.] We place coverage with A-rated admitted and surplus lines carriers. [Morrow to confirm carrier panel.] [Morrow to confirm reviews/ratings platform and score.]
Related Pages
- Restaurant Business Insurance — Industry Overview
- General Liability Insurance for Restaurants
- Workers Compensation for Restaurants
- Food Truck Insurance
- Commercial Auto Insurance — Product Overview
- What Is Hired and Non-Owned Auto Insurance?
- Commercial Auto Insurance Cost Guide
Author: Written by the Morrow Commercial Insurance Content Team, reviewed by a licensed P&C insurance professional with experience in commercial auto and hospitality industry placements.
Published: June 2026
Last updated: June 2026
Sources: - Insurance Information Institute (III) — Commercial Auto Insurance (iii.org) - National Association of Insurance Commissioners (NAIC) — Commercial Lines Policy Forms and Filing - ISO (Insurance Services Office) — Business Auto Coverage Form (CA 00 01) - Texas Department of Insurance (TDI) — Commercial Auto Insurance Requirements - Federal Motor Carrier Safety Administration (FMCSA) — Financial Responsibility Requirements for Motor Carriers - National Restaurant Association — State of the Restaurant Industry (for fleet and delivery statistics context)