New York Senate Bill S01162

New York 2025-2026 Regular Session

• Introduced: 1/8/25
• Refer: 1/8/25
• Engrossed: 6/11/25
• Engrossed: 6/12/25
• Refer: 6/12/25
• Refer: 1/7/26

Caption

Requires third-party food delivery services maintain insurance through a group policy that covers bodily injury or death arising out of or resulting from qualifying accidents involving a delivery person.

Impact

If enacted, S01162 will amend the General Business Law of New York and could significantly impact the insurance requirements for third-party food delivery services. Under the proposed law, the insurance must cover various types of individuals involved in qualifying accidents, including delivery drivers, pedestrians, and cyclists. This change is expected to create a safer delivery environment while providing necessary protections regardless of fault in accidents. The insurance coverage must be provided without deductibles and the costs should not be passed on to consumers.

Summary

Bill S01162 aims to address safety and liability issues in the rapidly expanding third-party food delivery service sector by requiring these services to maintain a group insurance policy. This insurance would cover bodily injury or death resulting from qualifying accidents involving delivery drivers while they are logged into the delivery platforms and transporting food from service establishments to consumers. The bill is a response to the growing number of delivery services and the associated risks, ensuring that drivers and the public are financially protected in the event of accidents.

Contention

There may be points of contention surrounding this bill, particularly regarding the financial implications for third-party delivery companies. Some opponents might argue that the mandated insurance could increase operational costs, which may result in higher service fees or altered driver compensation. Additionally, the stipulation that deactivation should not happen without clear documentation may cause tension between delivery platforms and their drivers, especially in cases where safety cannot be easily established. The bill also raises questions concerning the effects on delivery driver independence and their classification within the gig economy.