As the gig economy continues to flourish, many individuals are turning to platforms like Instacart for flexible employment opportunities. However, with this flexibility comes the responsibility of managing one’s own insurance needs. Understanding the available insurance options is crucial for Instacart shoppers to ensure they are adequately protected while on the job.
Auto Insurance: A Personal Responsibility
Instacart classifies its shoppers as independent contractors, which means the company does not provide auto insurance coverage. Shoppers are responsible for securing their own insurance policies that cover delivery activities. It’s important to note that not all personal auto insurance policies extend coverage to commercial activities like deliveries. Therefore, shoppers should verify with their insurance providers whether their policies include such coverage or if additional endorsements are necessary. In some jurisdictions, commercial auto insurance may be required for delivery drivers.
Injury Protection for Full-Service Shoppers
Recognizing the risks associated with shopping and delivering, Instacart offers Shopper Injury Protection to its full-service shoppers. This coverage includes up to $1 million per incident for medical expenses, disability benefits, and survivor’s benefits in the event of a fatality. The protection applies to injuries sustained while actively shopping or delivering orders. In-store shoppers, on the other hand, are typically covered under workers’ compensation for any workplace-related injuries.
Healthcare Subsidies in California
In response to California’s Proposition 22, Instacart provides healthcare subsidies to eligible shoppers in the state. To qualify, shoppers must:
- Average at least 15 hours per week on the platform over a calendar quarter.
- Provide proof of enrollment in a qualifying health insurance plan.
The subsidy amounts are tiered based on hours worked:
- 15 to 25 hours per week: Eligible for 50% of the average Affordable Care Act (ACA) contribution.
- 25 or more hours per week: Eligible for 100% of the average ACA contribution.
Shoppers receive notifications regarding their eligibility and must submit the necessary documentation within specified timeframes to receive the subsidy.
Partnering with Stride for Health and Dental Insurance
To assist shoppers in finding affordable insurance options, Instacart has partnered with Stride Health. Through Stride, shoppers can access a variety of health, dental, and vision insurance plans tailored to independent workers. The platform simplifies the process of comparing plans and enrolling in coverage that suits individual needs and budgets.
Health Savings Accounts (HSAs) with Starship
Instacart has also collaborated with Starship to provide shoppers with access to Health Savings Accounts (HSAs). HSAs offer a tax-advantaged way to save for medical expenses, including copays, prescriptions, and over-the-counter medications. Funds contributed to an HSA roll over year after year, allowing shoppers to build a reserve for future healthcare costs.
Conclusion
While Instacart offers certain protections and partnerships to support its shoppers, it’s imperative for individuals to proactively manage their insurance needs. By understanding the available options and taking advantage of resources like Stride Health and Starship, Instacart shoppers can ensure they are adequately covered while enjoying the flexibility of gig work.
