Following the success of ride-sharing apps, web-based food delivery services have become increasingly popular in the past handful of years. They provide convenience to the customer, who can enjoy food from practically any restaurant delivered to their home, instead of just a few limited options; the participating restaurants see increased revenue from delivery-based sales without having to maintain their own delivery drivers; and delivery workers have the opportunity to earn money while deciding their own schedule and hours. But what happens when something goes wrong, and a delivery driver is involved in an automotive accident?
Unfortunately, this isn’t a rare occurrence. Due to the nature of app-based food delivery, drivers are called upon more often specifically when customers don’t want to venture outside to get food themselves – often in the dark, during bad weather conditions, or rush hour traffic. These drivers are under intense pressure to deliver their orders quickly in order to earn better customer ratings and higher tips. They are frequently traveling on unfamiliar roads in search of customer residences. Many delivery drivers put in long hours behind the wheel, increasing their risk of an accident. And in truth, a high proportion of delivery service drivers are younger or otherwise inexperienced behind the wheel, meaning they are more likely to make mistakes or errors in judgment while in the driver’s seat.
What happens when a driver for a delivery app causes a car accident? The answer is, it’s complicated. New Jersey is a no-fault state and your first recourse when injured in a car crash is your own PIP coverage, regardless of who is responsible for the accident. However, depending on your type of insurance policy and the severity of your injuries, you may be able to seek additional compensation from the insurance company of the party responsible for your accident. That’s where the matter becomes tricky. With businesses involving food delivery apps, the drivers are often considered independent contractors, not employees. If the person who caused your accident was the delivery driver for your local pizzeria and therefore an employee of the restaurant, it would be a much simpler matter to say yes – under vicarious liability, the business is responsible for the actions of their employee while on the clock and performing job duties, and therefore the restaurant’s insurance applies here.
However, apps like DoorDash, GrubHub, and Uber Eats operate under different rules – both separate from conventional employers, and different from one another. GrubHub, for instance, does not offer any sort of insurance policy for its drivers. Under the argument that drivers are independent contractors, GrubHub denies any responsibility for their actions and leaves the driver and their personal insurance policy to handle any accidents that ensue while the driver is making deliveries. While New Jersey law does require ride-sharing companies to provide insurance to their drivers, the law hasn’t quite caught up to imposing the same requirements on delivery service apps.
DoorDash and Uber Eats, by contrast, do offer limited liability insurance coverage to their drivers, which applies to any accidents that take place during the window of time between the driver accepting an order on the app and completing the order (either by delivering it successfully, canceling it, or unassigning it). If a DoorDash driver is logged into the app and waiting for an order to come in when they are involved in an accident, their own personal auto insurance applies. Uber Eats does offer separate liability coverage of up to $50,000 that applies when their drivers are between deliveries, though this coverage applies only when the driver’s personal insurance is inadequate to cover the damages.
What does this mean in practice for an injury victim seeking compensation after an accident with a delivery app driver? Generally, your first step in pursuing compensation from the at-fault party will be to file a claim against the driver’s personal auto insurance policy. Regrettably, a majority of New Jersey drivers don’t carry more than the bare minimum legally mandated insurance coverage, so if your claim against the delivery driver’s insurance succeeds, their policy limits may fall well short of the damages they have inflicted. In addition, as the driver was using their personal vehicle for commercial work, your claim may be denied outright. If this happens, and the driver was contracted with a company that provides liability coverage, you can then submit a claim under that policy. (Under DoorDash’s liability insurance, having a letter of denial of claim from the driver’s personal insurance is a necessary first step to initiating the claim process.) The good news is that these liability policies often carry a lot of coverage, as high as $1,000,000 per accident – but the bad news is that because of these high stakes, the insurance companies involved will often fight hard to deny claims made against them.
Due to the legal complexities involved in seeking compensation for injuries caused by an independent contractor, and the need to file claims against multiple insurance policies, it’s all the more vital for you to reach out to an experienced auto injury attorney as soon as possible after your accident. Your attorney can navigate the issues of liability while you focus on healing.
Contact MyNJInjuryLawyer Howard P. Lesnik
If you or a loved one suffered an injury in an accident in NJ, you should contact an attorney familiar with handling these claims. An experienced NJ Injury Lawyer will know how to obtain medical records, videos, photographs, experts, locate witnesses and contact the insurance company so you can make a claim for your injuries.
My NJ Injury Lawyer Howard P. Lesnik, Esq. offers complimentary strategy sessions to address any issue or questions you may have for your injury claim in NJ.
Please contact NJ Injury Lawyer Howard Lesnik, Esq., immediately if you were involved in an accident. I personally handle NJ personal injury cases on a regular basis. Please contact me now by email, by phoning 908.264.7701, or by completing the form to the right to schedule your complimentary 30-minute strategy session. Call me direct and I will answer 5 questions that you have about your potential claim.
