Insurance Brokers Association of Ontario issues warning on risks associated with ridesharing programs

The Insurance Brokers Association of Ontario (IBAO) is warning UberX drivers and passengers of the risks associated with ridesharing programs.

In a press release on Thursday, the IBAO, a not-for-profit association representing and serving the interests of over 12,000 independent p&c insurance brokers in Ontario, said that there are “a number of myths that suggest insurance coverage would be recognized should an UberX driver or an UberX passenger be involved in a collision.”

“The simple fact is that UberX is a new concept that Ontarians are embracing quickly, both as drivers and as passengers,” said IBAO president Michael Brattman in the release. “At this time, drivers and passengers should know that there is no existing endorsement for a personal lines policy that is available today that would guarantee them coverage or protection in the event of a collision during an UberX experience.”

If the driver is working under a standard/basic personal auto insurance policy and they have not informed their insurer or broker that they were using their vehicle for commercial purposes, coverage would likely not be extended, the IBAO said. UberX drivers would be properly covered through the Facility Association under their taxi commercial auto policy. This is what is available today for drivers today.

IBAO also reminded Ontarians that auto insurance coverage is a complex product and when an injury occurs after a collision, it grows more complex. “When you layer UberX on top of the grey zone between personal insurance and commercial insurance, the complexity compounds further,” the association cautioned.

“We are encouraging insurers and regulators to find coverage solutions that specifically protect ridesharing opportunists,” Brattman suggested, adding that the association is developing an education session for brokers to be released next month that focuses on how to communicate these risks to their consumers – both the passengers and the drivers. “We would like to work with UberX to further understand the coverage they say they provide to their drivers,” concluded Brattman.