Third-party delivery has transformed the restaurant industry. DoorDash, Uber Eats, Grubhub, and other platforms now account for a significant portion of many restaurants' revenue. But when a third-party driver causes an accident while delivering your food, what liability sticks to your restaurant? The answer is more complicated than you might think.
The Independent Contractor Shield
Third-party delivery platforms classify their drivers as independent contractors, not employees. In theory, this means:
- The platform is not vicariously liable for driver negligence
- The restaurant is not liable because the driver doesn't work for them
- The driver is personally responsible for their own actions
In practice, plaintiffs' attorneys are creative about finding ways to attach liability to deeper pockets.
When Restaurants Face Liability
Even with third-party delivery, restaurants can face claims in several scenarios:
1. Food Quality and Safety
You're still responsible for the food itself:
- Food poisoning from improperly prepared or stored food
- Allergen contamination
- Foreign objects in food
- Temperature violations before handoff to driver
Coverage: Products liability under your GL policy covers food-related claims.
2. Negligent Packaging
If improper packaging contributes to injury:
- Hot beverages spilling due to inadequate lids
- Sharp containers causing cuts
- Packaging failures that lead to burns or contamination
Coverage: Potentially covered under products liability.
3. Negligent Selection of Platform
A novel but emerging theory: if a restaurant selects a platform known for poor driver screening or high accident rates, could the restaurant share liability for delivery accidents?
This theory hasn't gained significant traction, but it illustrates how plaintiffs look for any connection to liable parties.
Your Contract with the Delivery Platform
The agreements you sign with DoorDash, Uber Eats, and others contain important provisions:
Key Contract Terms to Review
- Indemnification clauses: Who indemnifies whom for various types of claims?
- Insurance requirements: What coverage does the platform require you to carry?
- Insurance provided: What coverage does the platform maintain?
- Limitation of liability: Are there caps on the platform's liability to you?
- Dispute resolution: How are claims between you and the platform handled?
Platform Insurance Coverage
Most major delivery platforms carry their own insurance that covers:
- Driver auto liability while on delivery
- General liability for platform operations
- Commercial auto for company-owned vehicles
However, coverage limits, deductibles, and what exactly is covered varies by platform. Don't assume their coverage protects you.
Hybrid Delivery Operations
Some restaurants use both third-party platforms and their own delivery drivers. This creates complex liability scenarios:
- Own drivers: You need commercial auto or HNOA coverage
- Third-party drivers: Platform's coverage is primary for driver negligence
- Both: Make sure there are no gaps when switching between delivery methods
Claims You Might Still Face
Even though third-party drivers aren't your employees, you could be named in lawsuits for:
- Food-related injuries (your clear responsibility)
- Packaging-related injuries
- Contribution claims from the platform seeking to share liability
- Joint and several liability theories in some states
- Apparent agency theories (did the driver appear to work for you?)
Frequently Asked Questions
Do I need HNOA coverage for third-party delivery?
Generally, no. HNOA (Hired and Non-Owned Auto) covers vehicles you hire or employee-owned vehicles used for your business. Third-party delivery drivers are working for the platform, not you, so HNOA doesn't apply to their driving. You need HNOA if you have your own employees making deliveries.
What if a third-party driver assaults a customer?
This is the platform's problem, not yours, assuming you didn't do anything to facilitate it. Your GL policy excludes assault and battery claims anyway. The platform's background check and screening procedures would be at issue.
Should I require proof of insurance from delivery platforms?
Yes. Request certificates of insurance from any platform you work with and keep them on file. This documents that the platform has coverage in place. Your broker can help you review the certificates to understand what's actually covered.