Food delivery apps like DoorDash and UberEats provide a service for both drivers and their customers. Drivers get a needed second or third income, and customers get meals delivered right to their doors. However, the additional driving means that the delivery people need extra auto insurance to cover their higher risk of accidents. At the same time, traditional auto insurance may not cover your vehicle if you are driving “commercially,” even if you are not considered an employee of the delivery company.
An experienced food delivery collision attorney with Fredson Statmore Bitterman, LLC can explain how insurance for food delivery app drivers in Bloomfield works, and what you should do to ensure your current vehicle insurance combines with the commercial insurance offered by most food delivery companies. Contact us today to learn more.
What are Some Types of Food Delivery App Insurance Policies?
Food delivery drivers must carry their own, New Jersey-compliant liability insurance to work with most delivery or rideshare programs. New Jersey requires “25/50/25” coverage, or a minimum of $25,000 personal injury liability per person. Since New Jersey is a “no-fault” state, you must also have Personal Injury Protection (PIP) if you are at fault and need medical attention.
Delivery drivers should consider any of these types of additional coverage:
Commercial Auto Insurance
Full-time drivers might want regular commercial coverage. Although more expensive, it protects you no matter when you are driving.
General Liability Insurance
This is an extension of your own policy and covers you against third-party claims.
“Pay-As-You-Go” Insurance
These types of policies let you pay for additional coverage only when you are delivering. This is recommended for part-time or occasional delivery drivers.
Rideshare/Delivery Endorsement
Also known as “gap coverage,” this is available from your insurer and added to your own insurance to bridge the period if you are in an accident before you have started your delivery.
Bloomfield food delivery drivers should weigh the relative costs of increased insurance against the monetary return from their delivery job. Commercial coverage may work for full-time drivers, but be too costly for part-time or casual drivers.
What Help Will Companies Provide?
Following several lawsuits against rideshare companies, most major rideshare and food delivery companies began providing liability insurance for their drivers, under specific conditions. A Bloomfield attorney from our firm can explain in more detail how this delivery driver insurance coverage works in your situation.
In general, this secondary third-party coverage only protects you when you are “on app,” meaning when you have accepted a delivery and are en route to your destination. Some companies interpret that to mean you must have picked up the food and left the restaurant or other provider.
DoorDash and Uber Eats provide up to $1 million in third-party coverage. Other popular food delivery apps do not provide any additional coverage. Since New Jersey is a no-fault state, you may need to exhaust your PIP coverage before you can file a claim against your company’s insurance. A personal injury attorney can help you file this type of claim.
Contact a Bloomfield Attorney to Learn More About Insurance for Food Delivery Drivers
If you need legal assistance with your food delivery app drivers’ insurance, the attorneys at Fredson Statmore Bitterman, LLC can give you advice on the best way to proceed. If your case must go to trial, our attorneys have the legal knowledge to help you get the best settlement possible in your case. Contact us today for a free and confidential consultation about insurance for food delivery app drivers in Bloomfield.
