- June 25, 2021
- Posted by: Stratford Team
- Category: Business
Ride-sharing services such as Uber and Lyft have refashioned the private transportation market. The rise in ride-sharing makes getting to where you need to go easier than ever before — but not without risks.
One of the biggest issues facing this industry involves the type and amount of insurance coverage that ride-share companies provide for their drivers. The main question: in the event of an accident, who pays? The answer is not as clear as you might think.
Companies like Uber and Lyft are legally classified as Transportation Network Companies. TNCs do not own any of the vehicles. Rather, they simply facilitate transactions between a hired driver and passenger via a mobile app. This ownership loophole creates an opportunity for TNCs to deny insurance coverage to their fleet, unlike other ride services such as taxicabs and limousines.
In 2016, the National Association of Insurance Commissioners adopted…
