Sharing platforms like Uber and Airbnb have brought a new level of convenience and affordability to many of life’s transactions. With the click of a button, you can find a cheap place to stay in a foreign city, rent an unused room in a home, or get a driver to pick you up in the rain. For providers, sharing services offer an easy way to earn extra money.
One of the reasons on-demand platforms are so cost-effective is because they operate largely outside existing insurance and regulatory frame-works. “Every one of these activities gives rise to an entire family of potential liabilities,” says Bob Hartwig, professor of risk management and insurance at the University of South Carolina. Insurance experts agree on one thing: People who provide services in the sharing economy often lack adequate protection.
Here’s how to minimize your risk: