Uber, Lyft and other ride-sharing services can make it easy to get a quick car ride or make some extra income, and they’re only becoming more popular. In fact, in the cities where these platforms are available, taxi ridership has declined anywhere from 10 to 30 percent. However, the convenience of ride-sharing isn’t without risks. Most ride-sharing businesses are in the early stages of development, and the popularity, risk management and compliance issues they’re facing are all in uncharted territory.Read More
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: