Auto Insurance And The Gig Economy: New York Freelancers’ Guide – The rise of the gig economy means that not only workers but also their insurers are having to adapt. Take out third-party liability insurance, which will pay if, for example, a courier hits and injures a pedestrian. An employee driving a company van will be covered under a standard commercial insurance policy. But “gig” couriers, when they want to work and use their own cars, often have to insure themselves. Even if they have personal insurance, it usually won’t pay for accidents that happen while traveling for work.

Among the companies looking to fill this gap is Zego, which has sprung up to serve scooter couriers like those who work for food delivery service Deliveroo. Deliveroo and its rivals require proof of insurance from couriers, but had no easy way to check it was valid. Couriers, meanwhile, were often reluctant to pay steep premiums. Harry Franks, formerly of Deliveroo and co-founder of Zego in 2016, spotted an opportunity and convinced insurers that a different model could be profitable.

Auto Insurance And The Gig Economy: New York Freelancers’ Guide

Auto Insurance And The Gig Economy: New York Freelancers' Guide

Zego now brokers third-party liability insurance for couriers working in Britain for almost a dozen different companies, such as Amazon or Quiqup (with plans to expand to Ireland and Spain). Couriers pay according to working hours. Coverage starts when they activate the messenger app on their phone and stops when they log out.

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Many gig workers want to opt out of third-party cover and purchase cover for themselves, such as sickness. For platforms that claim their workers are independent contractors, not employees (and thus not liable for payroll taxes), such specialized insurance is a way to offer some of the benefits normally associated with employment without compromising that point.

A good example is the insurance that Uber, a ride-hailing company, now offers through insurance broker Aon in many American cities. Drivers can choose to be insured against illness, disability and death at a rate of $0.04 per kilometer. Where it is offered, Uber has raised the rate paid to drivers by the same amount, further reinforcing the semblance of a work allowance. For regulatory reasons, drivers must participate. But a similar deal between Uber and AXA, the French insurer, provides accident, sickness and third-party liability cover for all couriers in nine European countries for Uber’s food delivery arm, UberEATS, without. must join and free of charge.

Uber’s policies for its drivers in Ontario through Intact, a local insurer, and a similar offering from Uber rival Lyft through Aviva in Toronto combine personal and third-party coverage. Both have a three-step approach. The first starts when a driver launches the Uber (or Lyft) app. The second, with higher coverage, starts when the route is accepted. The third is from the time passengers are picked up until they are dropped off. These schemes are similar in structure to commercial fleet policies, points out Aviva’s Mamta Kohli, but differ in their sporadic nature.

Some Gig-Economy insurance schemes are even more ingenious. AXA’s scheme for users of BlaBlaCar, the French long-distance carpooling service, covers repairs and provides alternative transport if the car breaks down. American car-sharing startup Clutch has a commercial-insurance policy that covers users not only in one of its cars, but also when they borrow a friend’s car. This breaks the usual pattern of commercial policies being associated with specific vehicles and only personal policies being associated with individuals.

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Such innovation is not always easy for established insurers. Their software systems may be so old that policies have to be printed out in standard form and amended with a typewriter, says Gillian Slyfield of Aon. Regulators may be slow to adopt new arrangements. And for a company that pays by the hour and relies on employees who own their own equipment, insurance can be too much of an expense. Ms. Slyfield complains that some advertise coverage they don’t actually have.

In the long term, insurers face a more fundamental challenge: disintermediation. Airbnb, a platform for booking accommodation in private homes, has offered a “host guarantee” against theft and vandalism since 2011. Although it works like insurance, no specialist company is involved. Airbnb handles payments itself. Uber’s Curtis Scott boasts that the company is “probably the most educated insurance buyer ever.” It does a lot of the math for pricing and allocating its insurance risk and has a potential sales platform in the form of its app. The next step for Uber and its peers may be to expand their gig offerings into insurance.

This article appeared in the Finance & Economics section of the print edition under the title Your policy arrives in two minutes Gig Economy Motor Insurance European Study The first report to assess and forecast the motor insurance market for the European giant economy Big market opportunities. For gig economy auto insurance…

Auto Insurance And The Gig Economy: New York Freelancers' Guide

Fast-growing markets are hard to come by during the COVID-19 pandemic. Thus, the Gig Economy Motor Insurance European Study is pleased to announce. its latest report, which analyzes and predicts a major opportunity for commercial lines insurers serving so-called “gig workers.”

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The car insurance market, which caters for last-mile food delivery, courier and private and public hire taxi services, is set to explode over the next 10 years, reaching €5.8 billion in premiums by 2030.

The Gig Economy Motor Insurance European Study is the first comprehensive study of the European market for scooter, car and van insurance for last mile delivery in both the employee and self-employed markets. It brings 220 pages of insight, data, analysis and forecasts to 2030.

As a result of national lockdown restrictions imposed in Europe, demand for e-commerce and related delivery services has increased over the past 12 months, accelerating plans to expand last-mile food delivery and courier services as they become part of everyday habits. as well as the demands of businesses and families.

A perfect example of this is Deliveroo, a food delivery service provider in the UK. In 2020, it added 20,000 new restaurants, it doubled its delivery workforce and plans to expand into 100 new towns and cities.

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However, providing worker mobility to European conferences presents significant challenges for underwriters: short-term contracts, unpredictable workloads, drivers’ inability to pay high premiums, and high frequency and severity of claims. Some of these drivers are employed by a last-mile provider, while others are self-employed. Most commercial lines insurers are ill-equipped to deal with this complexity, diversity and unpredictability of risks.

A special type of usage-based insurance (UBI) is emerging to better cover these risks: on-demand insurance (ODI) policies that adapt to the daily patterns of gig workers. Both traditional insurers such as AXA and Wakam and new insurance companies such as Inshur, Qover and Zego are beginning to address this market.

The research gives you unparalleled insight into the impact of how this fast-growing construction industry is poised to impact the commercial lines insurance market. The new policies will start in the second half of 2024, the earliest the government accepts the recommendations. From the Platform Workers Advisory Committee. PHOTO: ST FILE

Auto Insurance And The Gig Economy: New York Freelancers' Guide

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The Evolving Role Of Gig Work During The Covid 19 Pandemic

SINGAPORE – Workplace injury compensation and Central Provident Fund (CPF) payments are in place for app-based hawkers, private hire car drivers and freelance delivery workers.

In a major step to uplift the more than 73,000 platform workers here, the companies that hire them must provide standardized insurance protection for those injured during work hours.

As for CPF contributions, they will only be mandatory for those below 30 years of age. For everyone else, there is a choice to opt in or not.

The new policies will start in the second half of 2024 at the latest, after the Cabinet accepted the recommendations of the Platform Workers’ Advisory Committee on Wednesday.

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The committee was tasked with looking at strengthening protections for gig workers in 2021 and is made up of government and industry players, as well as workers and academia.

In a nearly 60-page report, the committee said the tighter insurance and CPF measures are meant to ensure platform workers receive basic protections commensurate with the level of control platform companies have over their work.

They currently fall in the gray area between full-time employees and the self-employed, as they can determine the number of hours they work, but cannot set their own prices or build their own customer base.

Auto Insurance And The Gig Economy: New York Freelancers' Guide

The changes will bring their basic protection in line with employees in other sectors who are currently protected under the Work Injuries Compensation Act (Wica) and must contribute jointly to the CPF.

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With the change, insurance for platform workers will be forced to cover the same three areas under Wica, where coverage for them now depends heavily on the goodwill of the platform company and is uneven across platforms. The three areas are medical expenses, loss of income, and lump sum compensation for permanent disability or death.

Meanwhile, the CPF co-investment rate will take five years to reach parity with other sectors, the committee said, starting from a lower point and increasing to

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