Pittsburgh-area woman learns hard way not all delivery drivers carry the correct insurance
PITTSBURGH (KDKA) — From packages to groceries to dinner showing up on our doorsteps, we live in a fast-paced world with non-stop deliveries.
But one Pittsburgh-area woman recently learned the hard way that not all delivery drivers carry the right insurance.
At the end of a long Fayette County driveway sits a mom of three stuck with a big bill. Alicia Bergstedt called KDKA Investigates after a simple grocery delivery turned into an emergency.
"I went outside and started carrying in the groceries and my husband started running in and said you have to call 911 now," said the Dunbar resident.
The delivery driver veered off Bergstedt's driveway and crashed into the gas meter, breaking the high-pressure line and shooting gas all over the street.
Thankfully, no one was hurt and the police report shows the driver had insurance.
"I didn't think anything else of it until the next day when the claims adjustor for her insurance company called me and very bluntly just said, 'We're not covering it. She was driving for business,'" Bergstedt said.
Turns out, Bergstedt stumbled into an insurance blind spot. Her grocery delivery driver worked for Walmart's Spark Driver platform, a network of independent contractors who deliver to Walmart customers.
She carried personal auto insurance, but as soon as she started driving for work her insurance company said any incident wasn't covered.
KDKA Investigates learned Spark doesn't carry commercial liability coverage for its drivers. The company requires its drivers to get enough insurance to meet state requirements. But when it comes to add-on commercial or delivery protection, Spark doesn't require it or check to see if its drivers carry it.
Bergstedt feels this is an oversight on the part of the company.
"I feel bad for her because she's in a position where even though I don't intend to sue her, I can't stop the insurance companies from suing her," Bergstedt said.
Since the delivery driver is not protected, Bergstedt feels she's not immediately protected and is now stuck with a muddy mess. The crash broke the gas line underground, meaning the fix could run $20,000. Bergstedt said It's left her with no choice but to pay her homeowner's deductible and get the gas turned back on.
"I'm still waiting to hear back from my homeowner's insurance on if they're going to cover it or not," she said.
KDKA-TV's Meghan Schiller asked: "How much are you out so far?"
"Five thousand dollars," Bergstedt said.
Bergstedt also pointed out that property damage is one thing, but what about simply driving on our roads?
"It's all of these delivery drivers that are on the road, as soon as they accept the order, they're not covered anymore," Bergstedt said.
KDKA Investigates learned unless a delivery driver seeks out additional coverage or makes sure the company they work for carries a commercial policy, they're at risk as they accept an order.
"They could do some sort of due diligence to make sure these people are covered with the proper insurance," Bergstedt said. "They could care about their employees and the people that they're delivering to with a really simple check. They're already checking to make sure they have insurance, why not make sure they have the right insurance?"
KDKA Investigates learned this insurance blind spot doesn't just impact Walmart's Spark, but all delivery companies.
Grubhub
Grubhub does not require drivers to carry additional insurance, which could lead to the same issue outlined in the above story.
"Under their partnership agreement with Grubhub, drivers are required to maintain insurance that satisfies all state and local requirements and provides coverage for all activities connected to performing delivery services. We encourage drivers to handle any claims with their insurance provider," a Grubhub spokesperson told KDKA-TV
DoorDash
DoorDash said it was the first national delivery program to offer occupational accident insurance to Dashers at no cost to them, with no opt-in or application required.
DoorDash requires all Dashers to maintain up-to-date insurance, and it offers excess liability insurance, which applies to accidents that occur while Dashers are on active delivery.
That insurance is free to Dashers and they are automatically enrolled. To learn more about DoorDash's occupational accident policies, check out this page.
Uber
Delivery drivers are required to carry their state minimum personal auto coverage. Uber maintains insurance through a third-party insurance company on behalf of delivery people in the event of an accident while on a delivery trip. More information on the insurance policy can be found here.
Amazon
Delivery Service Partners are required to carry commercial, business automobile and cargo liability insurance policies. Amazon Flex delivery partners must maintain the required insurance for delivering packages in their area.
In addition to personal coverage, Amazon provides delivery partners with the Amazon Commercial Auto Insurance Policy at no cost. This policy includes auto liability coverage, uninsured motorist/under-insured motorist coverage, and contingent comprehensive and collision coverage.
Postmates did not respond to KDKA-TV's request for comment.