Latest Developments in the Food Delivery Services

The demand for food safety management standards and a complete cyber risk management strategy because third-party exposures increase data breach risk.

FREMONT, CA: An increase in new delivery and carry-out services has been a lifeline for many restaurants to continue serving customers, keep employees employed, and maintain a revenue stream.

Incorporating third-party delivery services into a restaurant's business model has become increasingly attractive in recent years. While convenience has become increasingly advantageous, significant liability concerns are associated with third-party delivery, including exposures to contaminated illnesses, cyber risks, and auto accidents. If an employee gets involved in a motor vehicle accident while driving for work, the employee's auto insurance will respond and pay for damages first.

After the liability limits on the employee's auto policy have been reached, the injured party may seek compensation from the restaurant. Even if a restaurant's only option is to have non-owned auto coverage rather than operate its fleet, there are methods to mitigate the associated risks. Personal vehicle usage should be limited whenever feasible. Employers should document their driver policies and procedures in a written program. Policies should require employees to obey all laws, require the use of seat belts, restrict the use of communication devices except in emergencies, and prohibit the use of alcohol and legal and illegal substances that could impair their ability to drive safely.

The qualifications of drivers should be the same as if they were operating company vehicles. It is essential to ensure proper driver training and to document that each driver has received training on the company's distracted driving policy. Auto and workers' compensation hazards should be mitigated through training. Employees using a personal vehicle for business purposes should be required to verify insurance and assurance that business use is not excluded from coverage. The employer must keep a current copy of the declarations page for the employee's auto insurance policy. Transferring a more significant proportion of the risk by imposing higher limits is a practice that should be strongly considered.

Multiple factors increase the risk of injury for the delivery personnel. Individuals who drive on the job are statistically more likely to be injured or slain in a motor vehicle accident. The uncontrolled environment associated with delivering products increases the likelihood of slips, trips, and falls among delivery personnel. There is a risk of injury due to the theft of products or money. The claim will be factored into the experience modification calculation when an employee sustains an injury. It will harm the claims history, thereby increasing premiums.

Demand adherence to industry standards for food safety management; creating a comprehensive cyber risk management strategy because third-party exposures increase the risk of a data breach. There are numerous advantages to adding delivery service options to a restaurant's menu; a review of insurance coverages and risk controls is required. There are many additional risks and best practices when using third-party delivery service providers. It is essential to include robust indemnification clauses in contracts that transfer liability for any claims arising from a consumer's use of the services to the third-party delivery service.