Insurance

Restaurant Insurance in the DoorDash Age

Not long ago, if a restaurant offered delivery, it meant hiring a driver, insuring a vehicle, and taking responsibility for the food's journey to the customer's door.

That world is largely gone.

Today, more than 590,000 restaurants and food businesses have partnered with DoorDash alone, and the platform handles over 7 million orders every single day in the United States.1

Third-party delivery didn't just change how food gets to customers. It changed who carries the risk.

The shift happened fast.

DoorDash launched in 2013. By 2020, pandemic-era dining restrictions helped push delivery into overdrive, and order volume nearly tripled in a single year. Restaurants that once managed their own delivery fleets handed that responsibility to gig-economy drivers overnight. The overhead disappeared. But as any business owner knows, the cost didn't go away. It just shifted to another part of the balance sheet.2

Here's what restaurant owners need to think through with their insurance agent:

Risk 01 — Liability

Third-party liability gaps

When a DoorDash driver causes an accident or injures someone in transit, coverage questions can get complicated.

Your policy may not extend to incidents involving drivers you don't employ but who are carrying your product.

Risk 02 — Food Safety

Food safety and spoilage claims

You prepared the food. If a customer gets sick, they may still come to your restaurant, regardless of what happened during delivery.

Your general liability coverage needs to reflect this expanded exposure.

Risk 03 — Cyber

Cyber and data liability

Orders placed through third-party apps involve customer data. A breach on the platform could trigger claims that reach your business.

Many restaurant policies weren't written with this risk in mind.

Risk 04 — Reputation

Reputational and product liability

A bad review tied to a cold or damaged delivery can feel like a small problem until it isn't.

You may want to revisit your product liability coverage since you have less control over the final mile.

Outsourcing delivery removed a logistical headache but introduced risks many policies weren't built for.

If you haven't reviewed your coverage since adding a third-party delivery partner, reach out to your insurance agent and walk through your current policy with fresh eyes. The delivery landscape changed quickly. Take steps to help your coverage keep pace.

1. DemandSage.com, October 31, 2025.
2. Skillademia.com, April 7, 2025.

Have A Question About This Topic?

Thank you! Oops!

Related Content

The Lowdown on Those Free Credit Scores

The Lowdown on Those Free Credit Scores

What’s the deal with your yearly free credit report?

Think Flood Safety this Spring

Think Flood Safety this Spring

Floods are among the most frequent and costly natural disasters, especially in the Spring. Last year alone, excessive rainfall brought flooding to many locations, making it the deadliest for flooding since 2017.

9 Facts About Retirement

9 Facts About Retirement

Regardless of how you approach retirement, there are some things about it that might surprise you.