Insurance Question

[Cpech56]

Jimmy Johns has delivery drivers, is Jimmy Johns covered if one of those drivers gets into a fender bender and has his own insurance on his car? Or does Jimmy Johns also have to purchase insurance for their drivers?

Terribly worded so I hope you understand my question. Basically asking if I were the manager of Jimmy Johns and my drivers had personal insurance on their vehicles and showed proof of it do I need to purchase insurance on top of that for them to deliver?

 

[cyflier]

I assume Jimmy Johns would have the driver list them as an additional insured on the drivers personal policy. I would also assume Jimmy Johns would require the driver to have a certain limit of insurance not just the minimum allowed by law. Jimmy Johns would probably also have a supplemental policy to cover above and beyond what the drivers wouldn't in case a large loss.

 

[Cycsk]

Planning to sue a Jimmy Johns driver?

 

[cyhawkdmb]

Typically your standard Personal Auto Insurance does not protect you if you are doing deliveries. If I was running a business where I needed to insure individuals with auto insurance, make them get Commercial Auto insurance.. Not Personal Auto Insurance.. Clear?

On a General Liability policy, you should be able to get some coverage for owned and non owned autos. Just be up front and honest with your agent.

 

[zimman18]

Check into driver other car coverage, if personally owned vehicle is being used. If not, then company policy should already be taking care of it.

Most likely, in the incident that neither above are on the policy, a personal policy would kick into place and subrogate against JimmyJohns.

 

[cyhawkdmb]

Again.. Most companies in Iowa do not include delivery drivers as part of a personal auto policy. Needs to be commercial policy. If a agent knows that the insured is doing deliveries and rates them on a personal auto policy they are rating it wrong.

 

[JWIL4CY]

Most of the time the company (Jimmy John's in this case) relies on the driver to get his own personal insurance. When the driver has a claim the insurance company will pay the claim but then turn around and cancel the policy for material change in risk.

 

[Mtowncyclone13]

Spoke to my FIL and he said either JJ will require a commercial auto policy and either reimburse the employee or just require it as a condition of employment. He said his company would not pay damage claims arising from use as a delivery vehicle because their personal insurance plans specifically prohibit this claim.

If something were to happen my guess is the victim would sue Jimmy Johns and they would need to pay damages because it's their responsibility to ensure proper insurance coverage. Since delivery drivers are employees and not contractors they can't pass the buck, so to speak, back onto the driver.

Edit - just called a JJ where I know the manager back in MN and he said they require all delivery drivers to provide their own commercial insurance policy and they do not reimburse for this but the employee can write it off on taxes.

 

[LawyerClone]

Jimmy Johns has delivery drivers, is Jimmy Johns covered if one of those drivers gets into a fender bender and has his own insurance on his car? Or does Jimmy Johns also have to purchase insurance for their drivers?

Terribly worded so I hope you understand my question. Basically asking if I were the manager of Jimmy Johns and my drivers had personal insurance on their vehicles and showed proof of it do I need to purchase insurance on top of that for them to deliver?

You're asking the wrong question. 1st, Jimmy Johns (or, more specifically, the local franchise) is responsible in addition to the driver if a driver causes an accident in performance of their work duties. The driver "having insurance" isn't good enough. How much do they have? From the lawyers perspective, I don't care where it's coming from. If I have a driver with $75k of insurance, but I have $150k of damages, I want Jimmy's franchise (or their insurance) to pay the balance.

So if you're the manager, you're always going to want additional insurance. Most drivers aren't paying for 500k in insurance. Also, you're banking that you will always check to make sure the insurance has been renewed, paid, etc. It's not a substitute for your own insurance.

 

[Cpech56]

You're asking the wrong question. 1st, Jimmy Johns (or, more specifically, the local franchise) is responsible in addition to the driver if a driver causes an accident in performance of their work duties. The driver "having insurance" isn't good enough. How much do they have? From the lawyers perspective, I don't care where it's coming from. If I have a driver with $75k of insurance, but I have $150k of damages, I want Jimmy's franchise (or their insurance) to pay the balance.

So if you are the manager, you're always going to want additional insurance. Most drivers aren't paying for 500k in insurance. Also, you're banking that you will always check to make sure the insurance has been renewed, paid, etc. It's not a substitute for your own insurance.

Okay, so as the manager would I be smarter for me to pay for additional insurance for a few drivers or to use a company car and pay to insure it and make sure all deliveries are done out of the company car?

I guess I'm a little confused and it comes as no surprise, as I am slow as shi t when it comes to stuff like this.

Basically a close family friend of mine that owns a couple sandwich shops, not jimmy johns btw I simply used them as a reference. He is wanting to add delivery as an option to his business. He's wondering financially what the best way to go about that is. Just starting out it's hard to imagine he'll have many deliveries at first but that's besides the point as it only takes one for an accident to happen. Hopefully that makes sense, I just want to be sure I give him the best advice possible on what he should do. Whether to add commercial insurance to a company car or require a couple drivers to add commercial insurance to their current insurance.

 

[LawyerClone]

Okay, so *** the manager would I be smarter for me to pay for additional insurance for a few drivers or to use a company car and pay to insure it and make sure all deliveries are done out of the company car?

What you're really asking is a question for your insurance agent and or accountant. Your insurance agent will answer the coverage issues and costs of the insurance in both scenarios and your accountant on the tax treatment of company cars. If you don't do a company car, do you reimburse mileage? Does your insurance agent need a continually updated list of drivers? Things like that.

My *guess* is that you're going to have an overall policy on the drivers, but have them keep using their cars.

 

[troyisu]

Jimmy Johns has delivery drivers, is Jimmy Johns covered if one of those drivers gets into a fender bender and has his own insurance on his car? Or does Jimmy Johns also have to purchase insurance for their drivers?

Terribly worded so I hope you understand my question. Basically asking if I were the manager of Jimmy Johns and my drivers had personal insurance on their vehicles and showed proof of it do I need to purchase insurance on top of that for them to deliver?

I actually handled a claim very similar to this earlier this year involving a Pizza Hut driver. The driver was supposed to carry their own coverage, but the driver let the policy lapse...oops.

In this case, the local franchise had their own policy (who I am representing) through a different company. That carrier is now on the hook for the claim.

I think that is a pretty standard situation where the franchises carry their own policy for backup in situations like that.

 

[Erik4Cy]

Again.. Most companies in Iowa do not include delivery drivers as part of a personal auto policy. Needs to be commercial policy. If a agent knows that the insured is doing deliveries and rates them on a personal auto policy they are rating it wrong.

This.

(As a delivery driver 10 years ago and currently working for an insurance company.)

Whether JJs has anything supplemental on top of the individual having a commercial policy I would believe is up to them. The company I worked for never did when I delivered back in the day, hence why you don't see nice cars being used for delivery vehicles.

 

[besserheimerphat]

Okay, so as the manager would I be smarter for me to pay for additional insurance for a few drivers or to use a company car and pay to insure it and make sure all deliveries are done out of the company car?

I guess I'm a little confused and it comes as no surprise, as I am slow as shi t when it comes to stuff like this.

Basically a close family friend of mine that owns a couple sandwich shops, not jimmy johns btw I simply used them as a reference. He is wanting to add delivery as an option to his business. He's wondering financially what the best way to go about that is. Just starting out it's hard to imagine he'll have many deliveries at first but that's besides the point as it only takes one for an accident to happen. Hopefully that makes sense, I just want to be sure I give him the best advice possible on what he should do. Whether to add commercial insurance to a company car or require a couple drivers to add commercial insurance to their current insurance.

If you want to give him the best advice possible, why not tell him to talk to his insurance agent?

 

[Cpech56]

If you want to give him the best advice possible, why not tell him to talk to his insurance agent?

I have. Just trying to give him some more info on what he can expect, his insurance agent is gone until the 16th.

 

[cyhawkdmb]

I have. Just trying to give him some more info on what he can expect, his insurance agent is gone until the 16th.

Looks like he needs a new Agent... DM me his # and I will help him out!!

 

[Cpech56]

Looks like he needs a new Agent... DM me his # and I will help him out!!

lol, I'm sure his agent would pick up if he called. He's just being nice because he knows he's on vacation and doesn't want to bother him.

 

[cyhawkdmb]

lol, I'm sure his agent would pick up if he called. He's just being nice because he knows he's on vacation and doesn't want to bother him.

There should be someone at his office that can help, or relay the message.