We applaud the entrepreneurship of Our Clients and prospects, but when people perform “business activities” they need “business” coverage. we have three divisions here at Downey Insurance. personal, Commercial, Financial Planning
this is fresh off the press to exclude anything to do with ride sharing off of your personal auto policy.
ISO Personal Vehicle Sharing Exclusion
ISO created the Personal Vehicle Sharing Program Exclusion Endorsement PP 23 16 . It is specific and thorough…
“We will not pay any claim for injury or property damage under the policy, while Your Auto is being used in a personal vehicle sharing program. Such programs allow the use of your auto by a person other than you or a household member under an agreement and with payment to you”.
I would suggest that a Business Auto Policy does cover such an activity.
“if it smells like a duck and quacks like a duck … it’s a duck”.
here’s another way to look at it…one can be paid for allowing the use of one’s vehicle … an “innocent” sounding means of renting your vehicle to someone else.
You are then … Hertz/Avis in disguise! Someone pays to use their car. and here’s further exclusionary language …
“If you or someone on your behalf gives us false, deceptive, misleading or incomplete information in any application or policy change request and if such false, deceptive, misleading or incomplete information increases our risk of loss, we may refuse to pay claims under any or all of the Optional Insurance Parts of this policy. Such information includes the description and the place of garaging of the vehicles to be insured, the names of all household members and customary operators required to be listed and the answers given for all listed operators.”
There is a current court case in California involving an Uber transportation provider and the Uber organization. A driver who was “logged in” to Uber as available to drive struck and killed a 6 year-old girl in a cross walk. Uber is stating it is not liable because there was not an “active trip” at the time of the incident. The personal auto carrier is arguing that since their insured was driving around “logged in” to the ridesharing app, that he/she was providing a livery service at the time of the incident. What a mess!
Uber does state that if the primary insurance is not available, then their policy covers from the “first dollar.” This is a good thing
investigate just how well and quickly this Uber insurance will apply to an incident. and of course you;d want to see evidence of that policy… In the end, Remember an Insurance policy is a legal contract, with Legalese and specific intent. You cannot make a legal contract do something it was not designed to do; whether an Insurance contract or any other kind…
So Be Safe, rely on your Independent Insurance agent, who had multiple choices for you and great advice.
Charles I. Downey , CIC. President & CEO Downey Insurance Group headquartered in Marlborough, Massachusetts