Committee advances bill requiring delivery apps to carry coverage for drivers while logged in

The Business & Utility Subcommittee voted unanimously to send House Bill 2175 to the full committee after a lengthy floor review of insurance gaps for drivers who use delivery apps.

Representative Travis, sponsor of the bill, said the measure mirrors the 2015 Transportation Network Company framework and fills a coverage gap for drivers using personal vehicles to make deliveries. "This bill provides a comprehensive regulatory framework and insurance coverage requirements for delivery network companies," he said, describing minimum liability limits and when DNC coverage must apply.

The legislation defines two key periods: a "delivery available" period beginning when a driver is logged on and eligible to receive requests, and a "delivery service" period that begins when a driver is en route to pick up and continues until the requested goods are delivered. Under the amendment discussed in committee, DNCs or drivers must maintain minimum limits of $100,000 for bodily injury and $25,000 for property damage during covered periods.

Members pressed the sponsor and invited witness Alli Lynch of the American Property Casualty Insurance Association on whether the bill bars plaintiffs from suing both personal and commercial carriers; Lynch said, "this bill does not impact any of the statutes that relate to the ability to sue someone," adding that attorneys will typically pursue coverage under both applicable policies and let the carriers' terms determine ultimate responsibility.

Lawmakers also focused on the practical consequence of the app being "on" while drivers run errands. Lynch said the statute is intended to ensure a uniform floor of coverage because personal auto policies contain inconsistent commercial carveouts: "This bill requires the coverage to stand in the gap whenever you are engaged in a commercial endeavor." Members discussed an untimely amendment option to narrow the coverage window to pickups only, but the committee proceeded with the version that covers the delivery-available period and the delivery-service period as drafted.

Supporters said the measure protects victims and avoids uncovered claims; several members described the bill as filling a recurring litigation and claims gap when personal policies exclude commercial activity. Opponents raised concerns about potential overreach if companies must cover accidents that occur while a driver is logged in but not actively making a pickup; witnesses said platform terms and operational monitoring, plus the litigation process between carriers, would resolve disputed incidents.

The committee recorded a voice vote of nine yes, zero nays to advance HB2175 to the full committee. The bill now proceeds with the committee record that APCIA supports the amended language and that minimum limits proposed are lower than the TNC statute because the bill covers goods rather than the transport of passengers.