Airbnb provides a marketplace for service providers and service users. Lodging is their service. Airbnb has created an insurance product that, while not perfect, provides significant comfort to homeowners, renters, hosts and guests alike. The Host Protection Insurance Programme IS an insurance product. It covers liability of the homeowner in case a guest is injured. The Airbnb Host Guarantee covers the host if a guest damages the house. (If you rent out your house, you normal home insurance will probably not cover damage intentionally caused by a guest). If a lamp in the house falls on a guest and breaks their leg, the insurance product will be activated. If the guest picks up the lamp and breaks it against the wall, the Host Guarantee is activated. Aside from the actual policy terms and conditions, everything is available, in plain sight, on their public website. No sign in is required. I applaud Airbnb and Apollo insurance. They are changing with the times.
Uber provides a marketplace for service providers and service users. Transportation is their service. Unlike private houses, automobiles must have insurance to operate legally on the road. Taxi Drivers, the “Uber” drivers pay for commercial insurance. It is quite normal to pay over $10,000.00 a year in commercial insurance premiums in Toronto. That is for a single driver. Compare that to $2,000.00 ( more or less) for a personal car insurance policy. Uber claims to have a 5 million dollar commercial insurance policy. Try finding who and what it covers on their website. Most likely, that covers Uber. Not the drivers and not the passengers. The passenger can sue Uber, if Uber was negligent.Unfortunately, Uber has no responsibility regarding the actual car ride (they are only a marketplace).
UberX drivers are probably not paying for commercial insurance. Unfortunately, personal insurance policies do not cover paying passengers. Uber knows this. The Insurance companies know this. The government knows this. It is not a surprise and they are all “working” on something. But that is the problem. Uber, insurance companies and the City of Toronto continue to allow anyone to hire UberX drivers when they know there is a high chance the cars are uninsured. Uber claims all UberX rides are insured in Canada. Until I see that Insurance Policy that names the passenger and the driver as an “insured”, my opinion is they are not insured.
Airbnb has created a real solution. Uber is working on it. But why is UberX continuing to run while “they are working on it”? The laws requiring mandatory insurance are there for a reason. Apparently, some corporations are more equal than others.
If you or your clients have a dispute with any insurance company I’d be happy to talk.