Licensed Delivery Vehicle?

Business By brea1026 Updated 31 Mar 2010 , 2:50am by sweetcakes

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brea1026 Posted 29 Mar 2010 , 8:10pm
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Hi! So I am doing it!! I just applied for my llc and am meeting with the owners of the kitchen rental space on Wednesday. I have a few questions that I am hoping to get some help with.

As I was doing some research today I found something on about not using a personal vehicle for delivering food products. I am sure that this basically means what I think it does, but does anyone else have any input on this issue? We currently have 1 vehicle- a van that we use for everything. I am assuming that I will need to get another vehicle for when I deliver my cakes. =9( Not an expense that I am excied about.


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leah_s Posted 29 Mar 2010 , 8:41pm
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Meh . . . I use my regular vehicle.

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jillmakescakes Posted 29 Mar 2010 , 10:23pm
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It is my understanding that if you are involved in an accident while on a cake delivery, your insurance company doesn't have to pay as the vehicle was being used in a manner inconsistent with the policy.

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spring Posted 29 Mar 2010 , 11:44pm
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Insure it as your delivery vehicle...or as a commercial vehicle.


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bettinashoe Posted 29 Mar 2010 , 11:54pm
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Your personal auto policy will not cover your commercial delivery activities. You will need to purchase a commercial auto policy which you should get along with your commercial liability policy. If you are in an accident, your personal auto insurance company could indeed exclude both collision (damage to your vehicle) and liability (damage to the other vehicle and/or bodily injuries) under your personal auto policy. It's not a chance you want to take.

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indydebi Posted 30 Mar 2010 , 12:09am
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Agree with all of the above. It doesn't have to be a separate vehicle, it just has to be insured properly .. with a commercial auto policy.

Some things to know before you contact your agent for a comm'l policy (some things may differ by state, so check with your agent). On my comm'l policy:

- It was 3 times the rate of a personal policy. (comm'l is higher risk. People are more likely to sue and sue for more money if it's a business than they are if it's "just a person".)

- On a personal policy, I can hand the keys to my neighbor and if she's in a wreck she's covered because she's driving my car with my permission. On a commercial policy, that's not the case. Any person who drives the delivery vehicle must be listed on the policy as a driver.

- If your agent tells you that your personal policy will cover you "for a little bit" of business delivery (as I've seen in numerous threads on here), tell him to get a number and put it in writing. When you're facing a $250,000 lawsuit is NOT the time to find out he meant $100 a month worth of business and you figured $1000 a month was "a little".

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PieceofCakeAZ Posted 30 Mar 2010 , 8:42am
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You are correct Brea , according to the Maricopa County Health Code:

Personal vehicles (passenger cars, sport-utility-vehicles, open bed trucks, station wagons, etc.) are prohibited for use with a food catering operation.

That's why we bought a Chevy HHR Panel. It has no back seats and the back is all rubberized, they even sell the metal screen to separate the front from the back. It is a near perfect cake delivery vehicle,

I can however tell you that 90% of the cake companies here (even the licensed ones) deliver in passenger vans and SUVS, so I wouldn't worry about it. Unless they start cracking down on the 100+ unlicensed cake places in the area I can't see them picking on a licensed company for delivering in a passenger vehicle. Just my .02

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CookieMeister Posted 30 Mar 2010 , 2:36pm
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Originally Posted by jillmakescakes

It is my understanding that if you are involved in an accident while on a cake delivery, your insurance company doesn't have to pay as the vehicle was being used in a manner inconsistent with the policy.

My full time job (my cookie business is on the side) is the HR/Risk manager for a pizza restaurant group, and this depends on the state. Barring coverage for commercial purposes is not legal in all states. And some insurance companies don't have this clause. Other companies will remove the clause but you have to pay additional premiums. You need to check with your agent.

But you still have to check your health dept. jurisdiction to see if you can use a personal vehicle for delivery.

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sweetcakes Posted 31 Mar 2010 , 2:50am
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when my son wanted to take on a job of delivering pizza i found out through our insurance company that his vehicle would need commercial insurance. needless to say he couldn't take the job. if you deliver the newspaper you should have it, if you deliver the phone book you should have it. if you deliver anything the vehicle must have commercial insurance, and it isn't cheap. i no longer put my cake on board signs on my van. DH hubby wants me to get a HHR panel too, it sure does look like a perfect cake van.

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