The world is ever-changing and the insurance market is working hard to keep up. Most of you are aware of the increased popularity of ride-sharing services like Uber and Lyft, among others. They are redefining the way we think about transportation.
That being said, more people are signing up to be drivers for these services. Here is where the insurance issue lies. Most companies, including the ones we represent, take the position that this is a “Livery Conveyance” and is excluded in the policy. “Livery Conveyance” is insurance-speak for “taxi service” or “car for hire”, meaning that there is no coverage while you are being paid to transport people in exchange for money. The exclusion would take place from the time you are on the clock to take a passenger until the time you drop off the passenger.
Bottom line is this – you have NO COVERAGE at all for yourself or your vehicle while you are driving for any ride-sharing service. We have heard of endorsements to the policy that are being developed to address this, but none that are readily available at this time.
This is a major consideration when you weigh all of the pros and cons before you consider working with Uber or Lyft.