Committee advances bill requiring delivery platforms to cover drivers when personal policies exclude commercial use

Representative Travis presented HB 21-75, a proposal to create a comprehensive insurance backstop for delivery network companies (DNCs) such as DoorDash, Uber Eats and Shipt, saying the measure aims to close gaps where drivers’ personal auto policies may exclude coverage for commercial use. "That's what we're trying to do here," the sponsor said, emphasizing the bill mirrors earlier rules for transportation network companies.

DoorDash legislative counsel Jordan Bailey told the committee the company supports clear statewide insurance standards but opposed the bill as drafted because it would require platform-provided auto insurance during a period when a driver is merely logged on and has not accepted a delivery. "During this time, drivers have not agreed to perform any work...they may be commuting, running errands, or dropping off kids at school," Bailey said, warning that applying coverage during that window risks fraud and covers noncommercial activity.

Uber representative Brad Nail said DNCs should provide a backstop so that uninsured losses are not left to drivers when personal policies exclude commercial activity. "We must have the DNC providing some backstop coverage," Nail said, arguing the bill uses a vetted model from NCOIL and other states to address potential coverage gaps.

Leader Cochran offered an amendment that would limit platform responsibility to the period beginning when a driver accepts an order and ending at delivery, which DoorDash indicated would address its concerns. Sponsors and several members countered that narrowing the window would restore the coverage gap the bill intends to close. The committee debated whether the bill’s defined "delivery availability period" (which the sponsor and supporters say is tied to a platform-defined "eligible" status) or a stricter "accepted order" start is the correct statutory trigger.

The committee voted on Cochran’s amendment (coded 017121); the clerk reported 7 ayes, 13 nays and 1 present not voting, and the amendment failed. The committee then voted on HB 21-75 as offered; the clerk reported the roll call in the transcript as 14 ayes, 1 nay and 6 present not voting, and the bill was advanced to Calendar and Rules.

Next steps: The bill will proceed to Calendar and Rules for scheduling on the floor calendar. Stakeholders including platforms, insurers and consumer advocates indicated willingness to continue technical negotiations on definitions and timing if the bill moves forward.