Food Delivery Companies Not Subject to State UM Mandate

Portier, Inc., the parent company of Uber Eats (Uber Eats), and its insurer, James River, recently won an appeal in Superior Court of New Jersey, where the judges ruled that food delivery companies like Uber Eats are not subject to the mandate for transportation network companies to carry the statutory minimum for uninsured motorist (UM) coverage. The case is Malzberg v. Josey et al., 2022 N.J. Super. LEXIS 125 (N.J. Super. Ct. 2022).

Shortly after Scott Malzberg began using his personal motorcycle to deliver orders for Uber Eats, he was struck by a vehicle driven by Caren Josey. Malzberg’s resultant hospital and other medical bills exceeded the coverage available from Josey’s personal auto policy. He turned to Portier’s business auto policy with James River to cover the excess. Unfortunately for Malzberg, the policy applicable to Uber Eats did not provide UM coverage. James River moved for summary judgment; a judge granted the motion and dismissed Malzberg’s claim against James River with prejudice. Malzberg appealed.