I was delivering dumplings on 2nd Avenue, riding a Zoomo e-bike at about 18 mph. A pedestrian stepped off the curb looking at their phone, and we collided. She broke her wrist. I was fine, but two weeks later, I got a letter from her lawyer demanding $75,000. I called my Renters Insurance. Denied. I called the Delivery App. Denied. I was personally on the hook for the full amount.
Key Takeaways
- Renters Insurance Hates Motors: Standard homeowners and renters policies exclude liability for “motorized land vehicles.” If it has a throttle or goes over a certain speed, you have no coverage.
- Apps Offer Low/No Liability for Bikes: Unlike cars, many delivery apps do not provide automatic liability insurance for cyclists in all markets.
- You Are the Asset: If you don’t have insurance, they will garnish your future wages.
- Specialty Insurance is Cheap: You can buy dedicated e-bike liability for roughly $20/month.
The “Why”: The Motor Vehicle Exclusion
This is the most common surprise for urban delivery workers. You assume your Renters Insurance (which usually covers you if you accidentally hurt someone) applies here.
It doesn’t.
If your e-bike has a throttle or exceeds roughly 15-20mph (Class 2 or 3), insurance carriers classify it as a “motor vehicle.” However, you can’t register it with the DMV, so you can’t get auto insurance for it. You fall into a regulatory black hole: too fast for home insurance, too unregulated for auto insurance.
[IMAGE: Graphic comparing Class 1, 2, and 3 e-bikes and their insurance status]
The Investigation: Finding Coverage
I tried to insure a Class 2 E-bike for business use in NYC. Here is what I found.
1. Lemonade / Standard Renters Insurance
- The Verdict: Denied.
- My Analysis: I read their policy. It specifically excludes liability for any vehicle with a motor unless it’s a wheelchair or a slow golf cart. Using it for business (delivery) adds a second exclusion that voids coverage instantly.
2. The Delivery App (e.g., GrubHub)
- The Verdict: Unreliable.
- My Analysis: Some apps have started adding cyclist protection, but it is often “excess” only, or varies wildly by city laws. You cannot rely on this to protect your personal assets.
3. Specialty E-Bike Insurance (Oyster, Velosurance, Sunday)
- The Verdict: The Holy Grail.
- My Analysis: These companies specifically insure e-bikes. I quoted a policy with Velosurance that included $100,000 in liability and theft protection for the bike itself.
Comparison Table: E-Bike Liability Options
| Policy Type | Liability Limit | Business Use Covered? | Est. Cost |
| Renters Insurance | $0 (Excluded) | NO | N/A |
| Auto Insurance | N/A (Can’t Register) | N/A | N/A |
| Specialty (Oyster/Velo) | $100k – $300k | YES (Must select) | $25/mo |
Step-by-Step Action Plan
- Check Your Bike Class: If it has a throttle, assume your renters insurance is void.
- Buy Standalone Liability: Go to a specialist like Oyster or Velosurance. Make sure to check the box for “Business Use” or “Courier.” It costs a few dollars more but ensures the policy actually pays out.
- Wear a Camera: In a “he-said, she-said” with a pedestrian, the cyclist always loses. A GoPro on your helmet is your best defense against false injury claims.
- Verify App Coverage: Email your delivery app support and ask: “Does your policy provide Third Party Liability for bicycle couriers in my city?” Save the email.
FAQ
What happens if I hit a luxury car?
Without insurance, you are personally liable. If you scratch a Porsche, you could owe $5,000 out of pocket. Bankruptcy is often the only way out for uninsured couriers who cause major accidents.
Does my health insurance cover me if I crash?
Yes, your health insurance covers your injuries, but it does not cover the pedestrian you hit or the car you scratched.
Does CitiBike/Rental bike include insurance?
Usually, no. The user agreement for bike-share systems puts the liability 100% on you. If you hit someone on a CitiBike while delivering, you are paying for it.