As retailers and restaurants continue to deal with the impact of the Covid-19 pandemic, some have considered expanding their business model to include delivery services of food or merchandise. While it can be a great way to expand business offerings and serve customers who might be hesitant to shop in person, there are some important factors to consider before taking that leap. In today's Aegis blog post, we examine some of these factors.
Auto Liability Issues
In order to offer delivery services for restaurant meals or merchandise, businesses must utilize drivers using personal or company vehicles such as delivery trucks or fleet vans. In either instance, companies need the proper insurance coverage to protect against accidents or injuries that could occur on the road. If the employee drives a company vehicle, it should be covered under the Business Auto policy, but if they use their personal vehicle to make deliveries, the company should have Hired or Non-Owned Auto Coverage for added financial protection. Also, to ensure fleet safety, companies should request Motor Vehicle Report driving records for anyone driving on behalf of the company. The right kind of auto coverage can help protect employee drivers and the company in case disaster strikes.
Impact to Customer Satisfaction
Companies should also consider how their overall customer satisfaction could be impacted by offering delivery services. For example, restaurants should consider how well their dishes can travel by delivery, particularly if dishes are delicate or change temperature and texture quickly. A leaky, cold, or messy delivered meal could hurt a restaurant's reputation, so it's important to consider the food presentation when delivered. If good secure packaging and careful drivers can ensure that the food arrives as intended, then it can be a great way for restaurants and delis to expand their business. Likewise, retailers can make a great impact offering contactless deliveries for items such as groceries, clothing, hardware, and other essentials for customers who want to avoid in-person shopping.
Expanded Markets and Expenses
Finally, companies should consider if the costs associated with offering delivery services (such as fuel, added insurance needs, extra company vehicles, sturdier to-go packaging) is worth the potential increase in revenue by offering meals and merchandise deliveries to the area. For some companies that already have commercial vehicles for catering or deliveries, it's not much more added cost to expand into meal or merchandise delivery. For others, it can be a hefty investment before they see immediate rewards. It's important to weigh the costs compared to the potential expansion in markets and revenue.
Companies are trying all they can to stay afloat in the midst of a challenging economic time. But the right decisions can help a company not just stay afloat, but also thrive and expand while also helping customers get the meals and merchandise they want. Aegis Insurance & Financial Services is also committed to helping companies take the right next step in their business growth, by helping ensure all facets of the company are protected by quality Commercial Insurance. Contact our Aegis office today for more information about our line of Commercial Insurance policies, or fill out our online form for a free quote!