Personal lines automobile policies do not typically provide coverage for vehicles used for commercial purposes, like food delivery. As a result, in the absence of any other action, many of the anticipated temporary food delivery drivers would be uninsured.
However, it would be impractical and untimely for these drivers to temporarily obtain coverage for this limited purpose. Therefore, the Office of the Commissioner of Insurance (OCI) orders that Insurers shall not deny a claim under a personal auto policy solely because the insured was engaged in delivering food on behalf of a restaurant impacted by the restaurant closure.
This order shall apply to all personal auto policies in effect on or after March 17, 2020, and shall apply to all claims that arise from an occurrence beginning on March 17, 2020. This order shall remain in effect until the public health emergency order is lifted, in whole or in part, to permit restaurants to resume normal operations.
This coverage is not required to be afforded to drivers who otherwise have coverage for deliveries through their personal policy or another policy. This coverage also does not apply to drivers working for a transportation network company or similar delivery company. This coverage is only afforded to delivery drivers who do not have such coverage and this coverage does not stack with any coverage that is currently afforded.
Hired and Non-owned Auto Coverage
It is common for restaurants who employ delivery drivers who use their own car to obtain hired and non-owned auto coverage for liability incurred by those drivers. This is often offered as a rider to a commercial general liability policy. Since many of the restaurants who may begin delivery services did not anticipate the need for this coverage, it is likely that their commercial general liability policy will not include a hired and non-owned auto coverage rider. OCI further believes that it would be impractical and untimely for these restaurants to shop for coverage that includes coverage for non-owned autos.
For these reasons, all insurers who provide commercial general liability coverage to a restaurant to notify their restaurant insureds that hired and non-owned auto coverage is available if requested. If the insured restaurant requests hired and non-owned auto coverage, the insurer shall, either through a rider or stand-alone policy, provide this coverage to any insured restaurant.
This order shall apply to all commercial general liability policies in effect on or after March 17, 2020. The coverage afforded shall be effective upon the date it is requested. Insurers who offer retroactive coverage may request that the insured certify that they have not incurred any potential claims in the period of retroactive coverage. This order shall remain in effect until the public health emergency order is lifted, in whole or in part, to permit restaurants to resume normal operations.
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