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AB 523

Revises provisions relating to transportation. (BDR 57-1138)

2025 Regular Session

The bill lowers required active-service insurance to $1,000,000 for rides and monitored AVs, and shields delivery networks from vicarious liability if coverage is met.

Approved by the Governor. Chapter 5.
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Bill Summary · AB 523

AB 523 (BDR 57-1138) — Summary (2025 enactment)

Status & timeline
- Introduced: February 10, 2025.
- Passed both houses of the 2025 Legislature, enrolled, and approved by the Governor in 2025; chaptered into the 2025 statutes. (Legislative history shows committee and floor action in spring 2025 and final enrollment/presentation to the Governor.)

Purpose
- Revise Nevada law governing transportation network companies (TNCs), monitored autonomous vehicle providers, and establish definitions and liability rules for “delivery network companies.” The bill lowers certain minimum insurance requirements and provides statutory protection against vicarious liability for platform companies in specified circumstances.

Key provisions
1. Insurance minimums reduced
- Lowers the minimum transportation-network insurance required while a driver is actively providing transportation services from $1,500,000 to $1,000,000 (NRS 690B.470).
- Applies the same $1,000,000 minimum to monitored autonomous vehicle providers while operating a monitored autonomous vehicle.
- Other coverages for periods when drivers are logged into a digital network but not providing service remain (e.g., $50,000 for single-person BI, $100,000 for multiple persons, $25,000 property), as reflected in the statute.

  1. Definitions for delivery network companies

    • Defines “delivery network company” and related terms (driver, personal motor vehicle, delivery services, digital network, delivery service period) to govern app-based delivery platforms that connect customers to drivers.

  2. Vicarious liability protections

    • Provides that, under the bill, a delivery network company is not vicariously liable for acts or omissions of a driver that harm a person or property under any theory of vicarious liability or duty of care.
    • Likewise, a transportation network company is statutorily not vicariously liable for acts or omissions of a driver (or passenger) that cause harm.
    • The bill states that a delivery network company “shall be deemed to not control, direct or manage” a driver or the driver’s vehicle for purposes of this protection.

  3. Insurance condition for protection

    • For delivery network companies where a driver’s vehicle is a motor vehicle, the liability protection applies only if the company maintained a motor-vehicle insurance policy of at least $1,000,000 for liability to third parties during the delivery service period.

  4. Preservation of other legal claims

    • The bill expressly does not eliminate or foreclose other theories of liability or causes of action that may be available and proven under law.

Who is affected
- Delivery network companies (app-based delivery platforms), transportation network companies (ride platforms), monitored autonomous vehicle providers.
- Drivers who operate through those platforms and their insurers.
- Victims of crashes or other harms (insurance and causes of action remain available; vicarious liability claims against platforms are limited under the statute when conditions are met).
- Insurers (exposure/coverage obligations change with the revised statutory minimums).

Practical impact
- Reduces the statutory minimum primary insurance exposure for active-service periods from $1.5M to $1.0M, potentially lowering costs for TNCs and monitored autonomous vehicle providers (and affecting insurance market dynamics).
- Provides statutory safe-harbor from vicarious liability for platforms that meet the insurance condition, shifting responsibility primarily to drivers and available insurance coverage while preserving other legal remedies where appropriate.

Notes/clarifications
- Amendments during the legislative process refined definitions and scope (for example, earlier language about geographic limits and certain formulation changes were altered). The enacted text conditions the liability protection on maintenance of the required insurance and preserves other legal theories of liability.

Compiled from official sources — confirm details with the bill’s official record.

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