M E M O R A N D U M

TO: Members of the Senate Commerce Committee

FROM: Hilary Chebra, Manager, Government Affairs, CCSNJ

RE:                         S-486 (Scutari)

The Chamber of Commerce Southern New Jersey (CCSNJ) would like to voice our concerns with S-486 (Scutari) which requires food delivery network companies and food delivery company network drivers to maintain certain levels of automobile insurance.

              As written, this bill would require delivery platforms and delivery drivers to carry underinsured and uninsured motorist coverage in the amount of at least $1,500,000. Additionally, the bill requires liability coverage of at least $50,000 for death or bodily injury per person, $100,000 for death or bodily injury per incident, and $25,000 for property damage. The coverage requirements are the same as those required in New Jersey for rideshare platforms and rideshare drivers.

The CCSNJ understands the importance of ensuring accidents are covered, however we are concerned that the bill does not take into account the differences between rideshare services and food delivery services. A food delivery driver does not transport passengers, and therefore the risks associated with delivering food and goods are far less than those of rideshare companies transporting passengers. Due to the difference in the risks associated with the different services, it is inappropriate to require delivery drivers and platforms to carry coverage equal to rideshare drivers and platforms.

The bill’s required minimum amounts for underinsured and uninsured motorist coverage in the amount of at least $1,500,000 is excessive in the delivery context. For rideshare services that coverage needs to be available to protect the third-party passengers who have hired the car for service in case of an incident, however for delivery services, the underinsured or uninsured protection needed is no different than those of any other driver in the state.

Additionally, the bill’s required minimum amounts of liability coverage of at least $50,000 for death or bodily injury per person, $100,000 for death or bodily injury per incident, and $25,000 for property damage should be decreased to reflect the differences between these services. In an event where a rideshare driver is responsible for an incident, the liability coverage must protect other drivers, pedestrians, and third-party passengers in the car. The amount of liability coverage for delivery service drivers should be adjusted to reflect the absence of third-party passengers.

For these reasons, the CCSNJ respectfully opposes S-486 (Scutari).