Pizza Delivery and Insurance in POS

Here is something that comes up every once in a while. . .  If you have delivery drivers, then you might be paying more in insurance than you need to.

Most insurance companies bill you based on total payroll hours for all employees working the store.  Delivery drivers are billed at a higher dollar per hour than kitchen prep or cashiers.  This is done because there is obviously more risk when an employee is on the road.  The problem here is the you are also paying the higher rate for that employee when they are not on the road as well.

For example . . .  Let’s assume your insurance company bills you at $2 per $100 in payroll for prep, cashier etc and then $7 per $100 for delivery drivers.

For this store, they did 7,000 deliveries and 2,830 hours on the road.  That is an average of 24 minutes per run.  Insurance should only be billed at the higher rate for that payroll that was on the road! By taking the total payroll for all delivery drivers and subtracting out the payroll amount for those 2,830 hours on the road, we can get a true figure of how much payroll should be billed at the higher rate.

In this case, it was an $1,100 savings in insurance!

If you have deliveries, see how we can help you with our XML ticket history report.



January 10th, 2013 by