Key Takeaways
- Match your policy to how vehicles are used: owned, hired/leased, or employee-owned.
- Don’t assume personal auto covers delivery – most policies have business-use gaps.
- Set liability limits that fit pharmacy delivery exposures and local requirements.
- Add physical damage coverage if your pharmacy owns vehicles (or wants stronger protection).
- Use endorsements and umbrella coverage to close gaps as your delivery program grows.
Pharmacies are discovering what many other businesses already have: people enjoy staying in the comfort of their own homes, even when it comes to picking up prescriptions. Pharmacy delivery has been booming, especially for patients who are home-bound, but it also introduces real risks, from accidents on the road to damaged deliveries and misdeliveries.
Many of these risks can be reduced with the right coverage, particularly commercial auto insurance. Use the tips below to help ensure your pharmacy, your drivers, and your delivery operation are properly protected in 2026.
Understand the Difference Between Owned, Hired, and Non-Owned Auto Coverage
Your coverage needs depend on what kind of vehicles your delivery program uses. Understanding the difference between owned, hired, and non-owned auto coverage is crucial, because the wrong setup can create costly gaps.
- Owned: Vehicles the pharmacy owns and allows employees to drive for deliveries.
- Hired: Vehicles the pharmacy leases or rents for business use.
- Non-Owned: Vehicles the pharmacy does not own – typically employee-owned cars used for deliveries.
If your pharmacy uses a mix of these, your policy should reflect that. This is one of the most common areas where businesses accidentally assume they’re covered when they’re not. A solid foundation starts with commercial auto insurance that matches how vehicles are actually being used day to day.
Consider Coverage Options for Employee-Owned Delivery Vehicles
When employees use their personal vehicles for deliveries, many assume their personal auto policy will respond the same way it would for normal commuting. In reality, business-use exclusions can apply, and even when coverage exists, limits may not be high enough for your operational risk.
To better protect the business and make delivery roles more attractive, consider a solution that helps ensure drivers have appropriate coverage, potentially with the pharmacy contributing toward the cost of coverage or building out non-owned coverage as part of your commercial insurance program. If you’re reviewing this as part of a broader insurance cleanup, it can be helpful to evaluate your overall business insurance portfolio at the same time.
Ensure That Your Liability Limits Are Appropriate for Pharmacy Delivery Services
Pharmacy delivery can come with heightened expectations around reliability, privacy, and risk management. On the auto side, local requirements may dictate minimum limits, and your contracts (or partners) may require higher thresholds than the state minimum.
Your liability limits should be sized to your delivery footprint, mileage, number of drivers, and the environments they drive in (busy urban areas vs. suburban routes, for example). If you’re unsure where to start, discuss your delivery program with your agent while reviewing commercial auto insurance so your limits match your actual exposure.
Add Physical Damage Coverage to Your Pharmacy-Owned Vehicles
If your pharmacy owns vehicles, liability coverage alone often isn’t enough. Physical damage coverage (typically comprehensive and collision) helps pay to repair or replace your vehicles after an accident, theft, vandalism, or weather-related loss—depending on the policy terms.
If a vehicle is essential to your delivery program, physical damage coverage can be the difference between a quick return to service and a major operational disruption.
Understand the Role of Endorsements and Umbrella Policies
As delivery programs grow, it’s common to need additional protection beyond the base policy. Depending on your operations, vehicles, and requirements, endorsements can help tailor coverage, and an umbrella policy can extend liability protection above your underlying limits.
If you’re expanding routes, adding drivers, or working with new partners, review your coverage at least annually, and any time your delivery operations change, to make sure you’re not relying on outdated assumptions.
Have Questions? Contact Charlotte Insurance
Want to learn more about commercial auto insurance for pharmacies that offer delivery? Contact Charlotte Insurance. Our agents can explain options, review your delivery setup, and help build a coverage plan that fits your business.