By: Candice E. Iheme, Esq.
If you, like most reasonable people, assume that Uber Eats will provide insurance coverage to delivery drivers in New Jersey who are injured while making deliveries, you would be wrong.
As it currently stands, no law in New Jersey requires food delivery service applications to provide insurance coverage to delivery couriers.
July 7, 2023- Hopelawn, NJ
Unfortunately, pursuant to current New Jersey law, Uber Eats and all food delivery services managed by mobile applications have no legal obligation to provide insurance coverage to delivery drivers who are injured on the job.
If you are injured while making deliveries on a bike, scooter, or motorcycle, then you may be left on your own. At this time, it is uncertain whether other food service delivery apps will provide insurance coverage to delivery couriers.
HOWEVER, everyone contracted by these companies should make sure to review their employment agreements and any policy they have to sign before making a delivery.
Please do not end up like many people who get grievously injured in an accident by someone who has no (or very limited) insurance just to find out that the company you are working for will not help you.
*Please note that if you are driving for UberEats specifically and you are doing so in an automobile, Uber MAY afford you insurance coverage, but they are not required to.*
The Legalese
In 2017, New Jersey enacted the Transportation Network Company Safety and Regulatory Act (N.J.S.A. 39:5H-1 et. seq.) ("TNIC"). This law requires rideshare companies, such as Uber and Lyft, to afford $1.5 million in underinsured motorist insurance coverage to drivers and passengers. This coverage is applicable whenever a "network company driver is providing a prearranged ride." See N.J.S.A. 39:5H-10.
The issue, which became prevalent in Malzberg v. Josey, 473 N.J. Super 537 (2022), is that this law does not address insurance coverage for food delivery services.
In Malzberg, a case of first impression, the Appellate Division held that "[n]othing in the statutory text or legislative history of the [TNIC] suggests that the Legislature intended to regulate app-based food delivery services." Malzberg at *540. The Court held that currently, there is no obligation for these operators to provide insurance coverage to food delivery drivers.
The driver in Malzberg was delivering food on a motorcycle when he was injured.
In other words, the only law in NJ that forces Uber and Lyft to provide insurance coverage to drivers does not apply when the driver is making a food delivery.
Let me give you a scenario:
Janie is a single mother who does not drive and makes food deliveries on a bike to help pay her bills. She does not have health insurance because she cannot afford it. One day, she is hit by a motor vehicle while making a delivery.
The motor vehicle was clearly at fault. However, the motor vehicle's insurance coverage has lapsed. The delivery service company will not provide insurance to her because they do not have to. Janie is now injured, cannot work, and has no insurance coverage to pay her bills.
This happens every day.
Some of our most vulnerable citizens are the ones who will suffer as a result of this large gap in the law. Think about it: will citizens who have ample money and resources be delivering food for Uber Eats on a bike or motorized scooter?
Or will it be the people who truly need money and are willing to risk their lives so that they can afford to live in this expensive state? This gap in the law is horrific and must be rectified.
The purpose of this article is to spread the word about this lack of protection for some of our most vulnerable citizens.
It is also a call to action to the New Jersey Legislature; please enact a law requiring the operators of food service delivery mobile applications to provide insurance coverage to their delivery couriers.
It is horrific that these operators have the ability to profit off of the backs of the indigent and then can legally refuse to help them or provide them with resources when those people are injured while helping the operators make a profit.
Candice Iheme is a personal injury attorney at the Haddad Law Firm in Hopelawn, New Jersey. She specializes in helping preserve the rights of victims of automobile accidents, medical malpractice, landlord negligence, premises liability, and beyond. If you or a loved one was injured due to someone else’s negligence, please call 732-933-3535 and ask for Candice for a FREE consultation.
