Requires food delivery network company to maintain certain automobile insurance.
The legislation requires that while drivers are available for delivery requests, they must be covered by at least $50,000 for individual bodily injury, $100,000 for total incident bodily injury, and $25,000 for property damage. When drivers are engaged in actual deliveries, the insurance coverage requirements increase significantly, necessitating coverage of at least $1,500,000 for liabilities arising from death, bodily injury, or property damage. This change aims to ensure adequate financial protection for drivers and public safety.
Assembly Bill A2793 aims to establish comprehensive insurance requirements for food delivery network companies and their drivers in New Jersey. The bill mandates that both the driver and the food delivery company must maintain specific automobile insurance coverage levels while operating within the framework of a food delivery service. This includes maintaining liability insurance during the time the driver is logged onto the service's digital platform, whether they are actively delivering food or waiting for requests.
A noteworthy aspect of the bill is the level of insurance required, which may raise concerns among food delivery companies about increased operational costs. Critics of the bill might argue that the proposed insurance requirements could deter individuals from becoming delivery drivers or lead to higher delivery fees for consumers. On the other hand, proponents argue that these insurance requirements are essential for protecting drivers and customers alike, especially in a rapidly growing industry that has faced scrutiny over worker rights and safety.
The bill also stipulates that food delivery companies must provide written disclosures to drivers regarding their insurance coverage and the implications on their personal insurance policies. This aims to clarify responsibilities and ensure that drivers are informed about the extent of their protection while operating under a food delivery network. The effective date for this legislation is set to be six months after its enactment, allowing time for food delivery companies to adjust to the new requirements.