With the surge in use of Uber around the world, it was only a matter of time before insurers started responding to the risk of having everyday people take on passengers for hire. The main problem that they are addressing is Liability Coverage.
You see, while Uber says that they have insurance coverage (I’ve read $5,000,000 CGL limit), this doesn’t translate to YOU having $5,000,000 liability when you take on a passenger. In fact, Ontario auto private passenger insurance policies specifically exclude carrying passengers for hire and if you are found in breach of this, your coverage is void. So imagine an accident with multiple passengers… you are on the hook for allot of money.
All this is slowly changing though. Aviva just announced:
To all broker partners across the country
Responding to the growing use of ride-sharing services and the need to protect both passengers and drivers, Aviva Canada is excited to announce the launch of coverage for drivers that carry paying passengers in their own vehicles.
The coverage will become available for Ontario drivers in early February, and is a simple addition to an Aviva-insured personal auto policy. Aviva will be working with regulators across the country to make the solution available in other provinces in the coming months.
“With ride-sharing on the rise, consumers have new options available to them, however there is a gap in insurance coverage which potentially leaves them without appropriate protection and benefits. When consumer needs change, we must evolve our insurance solutions to respond,” said Greg Somerville, President and CEO of Aviva Canada. “We’re excited to offer a simple and affordable solution within a driver’s existing personal auto policy, thereby providing drivers and passengers with absolute peace of mind that they have insurance coverage while ride-sharing.”