Crashed with a Courier? You Might Have Less Coverage Than You Think
At Edzant Price LLP, we regularly speak with individuals who are surprised to learn how little insurance protection may apply after a collision involving a gig economy delivery driver.
With the rise of part time or “on-demand” drivers contracting with app-based delivery service platforms, many of these platforms do not provide commercial auto coverage or liability protection for those third-party claimants involved in a collision with a driver who is actively working. To make matters worse, that same delivery driver’s own personal auto insurance may deny a claim if the vehicle is being driven to pick up an order, deliver an order or waiting for a new delivery assignment.
Recently, we spoke with a prospective client who carried only basic liability coverage on her own vehicle and no Uninsured/Underinsured Motorist (UM/UIM) coverage. She was struck by a driver insured through a well-known, reputable auto insurance carrier. However, the driver was delivering food and did not have the required delivery endorsement in place at the time of the collision.
Complicating matters further, the delivery platform the driver was working for provided no applicable commercial auto coverage or third-party liability protection. As a result, despite the other driver appearing to have insurance on paper, coverage issues left our client in a difficult position. She was left with a totaled vehicle and medical bills that she was forced to address on her own.
Situations like this highlight an often-overlooked issue: when traditional and commercial coverage both fall away, there may be no recovery unless additional protections are in place on the injured person’s own policy. UM/UIM coverage is that protection.
UM/UIM coverage can be a critical safety net when the at-fault party’s insurance is unavailable, denied, or insufficient. Because coverage varies widely, it is important for drivers to understand what protections they actually have before an accident occurs.
If you or someone you know has been injured in a crash involving a gig economy delivery driver, it is important to evaluate both the accident facts and all available insurance coverage as early as possible. These details can significantly impact whether a viable claim exists and what recovery may be available.
