Colorado COVID-19 Insurance and Coverage Related News

Summary prepared by Dino G. Moncecchi

• The Colorado Division of Insurance has issued DRAFT Emergency Regulation 20-E-03 Concerning Restrictions On Coverage For Use Of A Personal Automobile Or As An Additional Unnamed Driver On A Restaurant Commercial Automobile Policy For Food Delivery During Pendency Of Public Health Order 20-22.
  • The purpose of this emergency regulation is to ensure restaurant employees are able to continue to work by using their own insured personal automobiles for commercial food delivery during the current COVID-19 emergency and through the period of time in which PHO 20-22 is in effect.
  • To the extent a restaurant maintains a named driver commercial automobile policy, this regulation shall apply to all insurers that issue or renew the named driver commercial automobile policy.
  • This regulation shall not apply to persons who regularly deliver food as part of their employment, persons working for food delivery services, catering services or other services not impacted by the restaurant closure issued in PHO 20-22.
  • For purposes of a claim made involving a restaurant employee driving for the purpose of delivering food to restaurant patrons, the insurer shall conduct a reasonable investigation and if the following conditions are met waive or suspend the commercial use exclusion/exception from a personal automobile policy:
    • The employee was driving their own insured personal automobile, or was driving a non-owned automobile with express permission of the named insured and is not specifically excluded from coverage pursuant to Section 10-4-630, C.R.S.
    • The employee was directly delivering or returning from the delivery of food to a patron of the restaurant; and,
    • The employee was operating within the course and scope of their employment with the restaurant, even though food delivery by vehicle is not within their usual duties but under PHO 20-22 it has become a substitute job duty.
  • If the employee is operating a vehicle, within the scope of employment, that is insured under a restaurant’s commercial automobile policy, and to the extent the policy is limited to specific named drivers, the insurer shall waive any exclusion related to drivers that are not named under the policy.
    ***This order is still in the call for comments

Please check back often as this information is constantly evolving and changing. Contact us immediately if you need assistance.