Committee advances bill setting $1 million insurance floor for ride‑hail and delivery companies

A Nevada legislative committee voted to pass Assembly Bill 523, a measure that reduces minimum liability insurance for transportation network companies and creates a statutory insurance framework for delivery network companies.

The committee — meeting as part of the Nevada Legislature — approved a work‑session motion to pass the bill after staff walked members through its provisions and industry representatives offered brief support. The motion passed unanimously.

The bill lowers the coverage requirement for transportation network companies (TNCs) such as Uber and Lyft from $1,500,000 to $1,000,000. It also creates a statutory framework for delivery network companies (DNCs) — described in testimony as companies that use apps to deliver goods or food, such as Uber Eats, Grubhub and DoorDash — and requires DNCs to carry $1,000,000 in coverage.

“It reduces that from 1,500,000.0 to $1,000,000 in coverage,” the bill presenter told the committee while walking through the measure’s sections. The presenter explained that the DNC provisions mostly provide definitions and then specify insurance requirements and claims processes.

Under the bill, if a DNC or TNC carries the $1,000,000 coverage required in the measure, the company would not be vicariously liable for the actions of its drivers. The presenter defined vicarious liability during the hearing as the principle that an employer can be sued “simply by operation of the fact that their employee did something wrong.” The bill removes that automatic vicarious liability so long as the company maintains the required insurance, but it expressly preserves other theories of liability: direct claims against the company remain available.

Section 4 of the bill limits the change in liability to causes of action that arise after Oct. 1 of this year; the presenter said the provision means ongoing cases or incidents that occurred before that date would not be governed by the new language.

Josh Griffin, testifying on behalf of Uber, thanked committee staff and stakeholders for negotiations and said the company supports the bill. “We stand obviously in in strong support of this bill and appreciate all the work that went into it,” Griffin said.

There were no callers or in‑room witnesses listed in support, opposition or neutral testimony during the official hearing record. After testimony and a short committee discussion, Senator Donate moved to pass the bill; Senator Hansen seconded. The committee chair called the question and the motion carried unanimously.

The committee recorded no amendments during the work session. The chair indicated she would file the committee’s floor statement and the Legislature will take up the bill on the floor in a subsequent step in the process.