Requires delivery network company to maintain certain automobile insurance.
The bill establishes minimum insurance coverage levels that are notably higher during the delivery process. While drivers are logged in but not actively delivering, they must maintain at least $50,000 for bodily injury per person, $100,000 per incident, and $25,000 for property damage. However, once a delivery is accepted, the coverage must escalate dramatically to at least $1.5 million in liability coverage. These mandates are considered to enhance safety and protection for both drivers and consumers in the gig economy surrounding delivery services.
Senate Bill S2273 requires delivery network companies and their drivers in New Jersey to maintain specific levels of automobile insurance. The legislation defines 'delivery network company' as any entity that operates a digital platform to connect customers with drivers for the delivery of goods. Under this bill, both the delivery network companies and drivers must secure insurance that covers drivers while they are logged into the network and during deliveries. The proposed insurance must include various types of coverage, including liability, personal injury protection, and uninsured motorist coverage.
Some potential areas of contention may arise regarding the financial burdens placed on drivers, many of whom may struggle to afford the required levels of insurance. Critics could argue that such high coverage limits may dissuade individuals from working as drivers for delivery companies, thereby constricting the labor pool within this sector. Furthermore, concerns might also be raised about the adequacy of existing personal automobile insurance policies in relation to coverage during periods of network engagement prior to delivery hooks.
In ensuring drivers have adequate insurance, the bill aims to prevent scenarios where accident claims might be filed against drivers without sufficient coverage. It mandates that delivery network companies must provide drivers with written disclosures regarding insurance requirements before they can accept delivery requests, promoting awareness among those entering the delivery profession.