Gig workers in Indiana who drive for companies like Uber, GrubHub, and Instacart often face insurance coverage gaps while working. A new law aims to address this issue by requiring companies to provide adequate insurance coverage to their contracted drivers.
Currently, drivers who use their personal vehicles for gig work may not be covered by their personal insurance policies while working. Some insurance companies offer specialized policies for gig workers, but many explicitly exclude coverage for drivers using their vehicles to make money as contractors.
The new law, authored by insurance agent and state Rep. Matt Lehman, extends protections to gig workers delivering food and products for companies like DoorDash and Instacart. It requires companies to provide minimum coverage amounts for drivers during different stages of gig work: $50,000 per incident for property damage while marked available and $1,000,000 while making deliveries or en route to begin work.
Key Provisions of the New Law
- Companies like GrubHub may need to expand their insurance offerings in Indiana
- Drivers’ personal insurance policies cannot be required to deny a claim before the company’s insurance kicks in
- Minimum coverage amounts are set for different stages of gig work
The law aims to ‘level the playing field’ for gig workers and ensure they have adequate insurance coverage while working. It goes into effect in 2024.
Indiana Restaurant & Lodging Association CEO Patrick Tamm supported the legislation, stating it helps Hoosiers by ensuring coverage during delivery work. The law represents a significant development in addressing the complex insurance needs of gig workers in Indiana.
