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Ghost Kitchen Delivery Operations: Auto Liability for Virtual Brands

HNOA coverage considerations for ghost kitchens and virtual brand delivery operations.

Ghost kitchens and virtual brands have exploded, often operating multiple delivery-only concepts from a single location. When you're running delivery operations for several brands, understanding your auto liability exposure becomes critical. Here's how HNOA coverage applies to ghost kitchen and virtual brand delivery operations.

Unique HNOA Considerations for Ghost Kitchens

  • Multiple brands, one operation: Delivery volume may be higher than traditional restaurants
  • Delivery-only model: 100% of revenue depends on delivery execution
  • Third-party platforms: Most ghost kitchens use delivery apps
  • Own delivery: Some use their own drivers for premium service

When You Need HNOA

HNOA coverage is needed when:

  • Employees use their own vehicles for any business purpose
  • Managers make supply runs, bank deposits, or errands
  • You rent or borrow vehicles for large orders
  • You have any in-house delivery operation

Third-Party Delivery and HNOA

When using delivery platforms (DoorDash, Uber Eats, Grubhub):

  • Platform drivers are not your employees - their auto liability is not your concern
  • You don't need HNOA for platform drivers
  • You're still liable for food quality and packaging
  • Platform contracts define liability allocation

Frequently Asked Questions

Do I need HNOA if I only use third-party delivery apps?

Only for other business driving. If managers or employees ever use personal vehicles for business purposes (supply runs, banking, errands), you need HNOA for that exposure. The platform delivery itself doesn't require HNOA because those drivers work for the platform, not you.

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