Senate panel advances delivery‑app insurance standard after industry pushback
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Summary
Lawmakers moved a bill to apply rideshare‑style insurance rules to app‑based delivery services during active delivery periods; DoorDash and Shipt said the draft improperly covers logged‑in but inactive time and would raise costs for drivers and companies.
Sen. Taylor presented SB 24‑58 to extend insurance requirements like those that govern transportation network companies (Uber/Lyft) to delivery network companies (DoorDash, Instacart, Shipt). "Right now, delivery network companies are not statutorily required to maintain certain insurance during delivery availability periods; this bill fills that gap," Ally Lynch of the American Property Casualty Insurance Association told the committee.
Industry witnesses said the bill's definition of the "delivery availability period" would require companies to provide coverage during time when drivers are logged in but not actively undertaking deliveries. "On DoorDash, drivers can log in, review opportunities, and reject every order. During that time they are often commuting home or running errands — that is not commercial activity," Adam Nickus of DoorDash argued. Mark Smith of Shipt made a similar point, saying the bill as drafted applies a rideshare‑centric model to a different business model and could increase costs for workers and consumers.
Sponsors pushed back that logging into an app indicates availability for hire and should trigger coverage. The committee adopted amendments and advanced SB 24‑58 to calendar (7‑2). Chair noted the bill preserves consumer protections but industry asked for clearer definitions to avoid unintended coverage obligations.
