Las Vegas, NV — Nevada has passed Assembly Bill 523, amending state law (NRS 706A and related statutes) to significantly alter the liability landscape for rideshare and delivery companies such as Uber, Lyft, Uber Eats, Grubhub, and DoorDash.

Effective October 1, 2025, these companies must still carry substantial insurance, but their liability exposure is now reduced to $1,000,000 per incident and their vicarious liability for driver conduct is limited.

Key Provisions Of AB 523 Affecting Rideshare & Delivery Company Liability

The bill amends NRS 690B.470 to require:

“Every transportation network company or driver shall … provide … insurance … in an amount of not less than $1,000,000 for bodily injury to or death … and injury to or destruction of property … while the driver is providing transportation services.”

Attorney with gavel in hand, representing legal matters related to Nevada’s AB 523 Lowers Rideshare & Delivery Company Liability To $1 Million AB 523 also adds that:

“A transportation network company is not vicariously liable for any act or omission of a driver or passenger under any theory of liability or duty of care.”

Similar provisions now apply to delivery network companies. Under the new section of the law, a delivery network company:

“Is not vicariously liable for any act or omission of a driver under any theory of liability or duty of care,”
provided the company maintains a motor vehicle liability policy of at least $1,000,000 effective at the time of the incident. The statute also states that a delivery network company “shall be deemed to not control, direct or manage a driver or the personal vehicle of a driver.”

How AB 523 Changes Insurance Coverage For Nevada Accident Victims

Previously, Uber, Lyft, and similar platforms were required to carry $1.5 million in coverage and could face broader liability theories. Under AB 523, the insurance requirement is reduced to $1,000,000, and these companies are shielded from vicarious liability for their drivers’ actions — unless another independent basis for company liability can be proven (such as negligent hiring, defective policies, or direct wrongdoing).

For injured passengers, pedestrians, and other motorists, this change may limit the amount of insurance available to cover catastrophic injuries and make it more challenging to pursue the rideshare or delivery company directly. The impact of this change includes:

Insurance Coverage is Lower: Insurance claims are now reduced to $1 million instead of $1.5 million for required coverage. In most cases, $1 million is more than enough, but certain catastrophic injuries, especially when multiple victims are involved, could require additional compensation; Victims may still pursue other at-fault parties, additional coverages (e.g., UM/UIM), and direct-negligence claims against a platform.
Not as Easy to Directly Sue TNC: Under AB 523, if the required $1,000,000 per-incident policy is in place, a TNC is generally not vicariously liable for a driver’s acts. You can still pursue direct-negligence claims (e.g., negligent hiring/retention/policies) where supported. Practically, many claims will proceed against the driver and the required $1M policy—plus any other applicable coverages (e.g., UM/UIM)—but your total recovery isn’t automatically capped at $1M.
When Victims can Sue for Direct Negligence: While AB 523 protects TNCs from being vicariously liable, they can be held responsible if they were directly negligent, such as hiring a driver with a known violent history and that driver assaults a rider.
Delivery Driver Accident Limits: Delivery drivers for food/app delivery companies are also covered under AB 523, meaning the companies will not be held vicariously liable for accident injuries done by the driver as long as they hold $1 million of insurance at the time of the accident.

infographic that explains How AB 523 Changes Insurance Coverage For Nevada Accident Victims

What Riders & Injury Victims Can Do To Protect Themselves After An Accident

Uber app open on phone in a car, symbolizing the impact of Nevada’s AB 523 Lowering Rideshare & Delivery Company Liability To $1 Million for injury victims

Under Nevada’s new AB 523, there are more protections in place for the rideshare/delivery companies. As an injury victim, it is important to understand what you can do to protect yourself and ensure you receive the compensation you need to make a full recovery. To protect yourself and strengthen your claim:
Get immediate medical care, even if your injuries feel minor and follow all treatment recommendations.
Document the scene using photos, videos, license plate numbers, witness statements, and rideshare/delivery app screenshots.
Reach out to a skilled Nevada car accident injury lawyer to make sure your rights are protected.
Look into every insurance source, the driver’s personal insurance, rideshare/delivery company’s insurance, and your own personal auto policy.
Keep all of your records including medical bills, pay stubs, repair bills, and insurer correspondence.

How a Personal Injury Lawyer Can Protect You After a Rideshare Or Delivery Accident

At Benson & Bingham Accident Injury Lawyers, LLC, we’ve been closely following the changes to Nevada’s insurance laws under AB 523. These new rules can have a big impact if you’ve been injured in an accident with a rideshare or delivery driver. If this sounds like your situation, get in touch with us for a free consultation. We’ll walk you through your options and fight to protect your rights.