It usually starts with someone trying to help. A bakery runs out of napkins. A restaurant needs more containers. A staff member offers to grab supplies on the way in, or drop something off to a customer on the way home. It feels like a quick favor and that's exactly why it gets missed.
Most restaurant, bakery, and café owners do not think they have an auto exposure unless there is a company car, delivery van, or formal driving operation involved. But if someone is driving on behalf of the business, even in their own car, the business may still have risk.
And that risk can leave the building before anyone has stopped to think about it.
The Personal Auto Assumption
A lot of owners assume that if the employee is driving their own car, the employee’s personal auto insurance will handle it. Sometimes that may be true. Other times, it may not be that simple.
Personal auto policies are not designed for every kind of business use. If the trip was connected to work, there may be limits, disputes, or gaps the owner did not expect.
That is where Hired & Non-Owned Auto coverage comes in. This coverage is designed for situations where a business does not own the vehicle, but still has an exposure because a personal, rented, or borrowed vehicle is being used for business purposes.
For hospitality businesses, this can be easy to overlook because the exposure does not always look official. There may be no delivery fleet, no branded vehicle, and no formal route. Just someone trying to help.
It Is Not Just About the Policy
Insurance matters, but it is not the only thing owners should think about. There is another practical question that often gets overlooked: Who is actually behind the wheel?
If an employee is driving for work, the business should have some understanding of whether that person is qualified to drive. In California, negligent entrustment and negligent hiring claims can look at whether a business knew, or should have known, that a driver was not fit or properly licensed. In McKenna v. Beesley, for example, the court looked at whether there was a reasonable effort to check a driver’s license status before allowing someone to drive in connection with the work. For business owners, the practical lesson is simple: it may not be enough to say, “I didn’t know.”
That does not mean every small business needs a complicated system. It does mean owners should know who is driving, why they are driving, and whether the basics have been checked.
The California EPN Piece
For California businesses with employees who drive for work, the Employer Pull Notice Program may be worth discussing.
The EPN program allows participating employers to monitor certain driving-record activity for enrolled drivers, including license suspensions, revocations, accidents, and convictions.
Not every bakery, café, or restaurant has the same requirements. But if employees are driving for the business, even occasionally, it is worth asking whether the current process is enough.
What to Review
Instead of starting with, “Do we own any vehicles?” a better question is: “Does anyone ever drive for the business?”
If employees ever drive for work-related tasks, it is worth reviewing:
- Whether Hired & Non-Owned Auto coverage is included in your policy
- Who is allowed to drive for work-related tasks
- Whether employee licenses are being checked
- Whether personal vehicles are being used for errands, deliveries, or catering
- Whether employees are required to carry certain personal auto limits
- Whether you have a written policy for employee driving
- Whether the EPN program makes sense for your California business
This is not about distrusting your team. It is about protecting the business they are helping you build.
At DiNicola Insurance Services, we help restaurant, bakery, café, and hospitality owners look at how their business actually operates, not just what is listed on a policy. The everyday details are often the ones that matter most when something goes wrong.
Before the next supply run, catering drop-off, or “I’ll just grab it on my way in,” make sure your business is protected when the work leaves the building.