Short answer: Under Business and Professions Code §7455, added by Proposition 22, delivery and rideshare network companies in California must provide occupational accident insurance for app-based drivers while they are online. It covers at least $1,000,000 in medical expenses and pays disability benefits of 66% of average weekly earnings for up to the first 104 weeks after an injury. It also includes accidental death benefits for dependents. It is not a substitute for your own auto policy, and it has gaps.
What §7455 requires
| Coverage | Minimum | Source |
|---|---|---|
| Medical expenses from an injury while online | Up to at least $1,000,000 | B&P Code §7455(a)(1) |
| Disability (lost income) | 66% of average weekly earnings from all network companies, for up to the first 104 weeks, with weekly minimums and maximums set under Labor Code §4453(a) | §7455(a)(2) |
| "Average weekly earnings" | Total earnings from all network companies in the 28 days before the accident, divided by four | §7455(a)(2)(B) |
| Accidental death | For spouses, children or other dependents | §7455(b); CDI notice |
| Third-party auto liability (delivery companies) | At least $1,000,000 per occurrence during engaged time when the car isn't otherwise covered | §7455(f)(1) |
The gaps to know
- Online but personal. §7455(d) says the coverage isn't required for an accident while you're online but outside engaged time if you're engaged on another platform or doing personal activities.
- Your own car isn't covered. Occupational accident insurance pays for your injuries, not damage to your vehicle. Collision for your car comes from your own auto policy.
- Your personal auto policy may exclude delivery. Many personal policies exclude driving for pay. Ask about a delivery or rideshare endorsement. See rideshare and delivery driver insurance.
- Several apps at once. If more than one company's insurer covers an accident, the insurers share the cost pro rata, according to §7455(d).
Checklist
- Find each app's insurance summary in its driver help center.
- Tell your auto insurer you deliver, and ask about an endorsement.
- Keep screenshots showing you were online or on a delivery at the time of any accident.
- Consider disability insurance for injuries that happen off the app.
Frequently asked questions
What does Prop 22 occupational accident insurance cover?
Medical expenses up to at least $1,000,000 and disability payments of 66% of average weekly earnings for up to 104 weeks, for injuries while online, plus accidental death benefits for dependents (B&P Code §7455).
Does it cover damage to my car?
No. It covers your injuries. Damage to your car depends on your own auto policy.
Am I covered between deliveries?
Coverage applies while you're online, except when you're online but outside engaged time while engaged on another platform or doing personal activities (§7455(d)).
Does my personal auto policy cover deliveries?
Many personal policies exclude driving for pay. Ask your insurer about a delivery or rideshare endorsement.
Alishahi Insurance · 439 N Canon Dr, Penthouse, Beverly Hills, CA 90210 · (877) 711-4545 · CA License #4348151. General information only. Not legal, tax or financial advice, and not a coverage determination. Coverage depends on policy language and underwriting, and rules vary by state.