Call Us Call Us! (970) 352-9500 (800) 752-6034

Public Service Announcement! Companies have no legal responsibility to provide insurance for independent contractors!!

Imagine earning some extra cash as an Uber driver for New Year’s Eve. Things are great at $25 an hour, but you get into an argument with a rider and he reacts with physical force. Two damaged teeth and one expensive surgery later,
you are stuck with medical bills and unable to work, only to find Uber has no legal obligation to provide you compensation.

As an independent contractor with Uber, able to set your own hours and riders, you are on your own when hurt while on the job. In an interesting comparison, most American taxi drivers are also independent contractors, but still receive Workers’ Compensation in most states, including Colorado,
because of the high risk of the job.


This is the danger of the “Sharing Economy.” Also known as the gig-economy or freelance economy, companies in this field often do not disclose
a lack of Workers Compensation Insurance. This is a huge deal when many employees in this type of business have never been a part of a sharing economy before, and do not realize that their take-home pay has to cover the things that traditional employers would take care of, which includes insurance protection.

Part of the problem is
Worker’s Compensation, as an insurance plan, does not make sense for this type of job.  How can the insurance cover lost wages when you set your own hours, obtain income from several different sharing economy based companies, or have unclear on-site hours like AirBnB hosts?

As an insurance agency, writing Worker’s Compensation daily, we cannot help but wonder what kind of protections we can provide an independent contractor.
We suggest obtaining a quality personal auto insurance policy. If your policy options exclude business use, look into getting a commercial driver’s license for commercial auto insurance instead. Potentially, we can find new polices tailored to the sharing economy with partners like MetLife. Call use today and we can discuss the details with you!

Forbes’ Sharing Economy and Worker’s Compensation Article

Posted 11:00 AM

Share |


Lori said...
Another fact: Uber passengers may want the diver to cover their medical bills if there is an accident. Driving commercially on a personal auto policy can get messy!
FRIDAY, JANUARY 15 2016 11:03 AM

Post a Comment
Required (Not Displayed)

All comments are moderated and stripped of HTML.
Submission Validation
Change the CAPTCHA codeSpeak the CAPTCHA code
Enter the Validation Code from above.
NOTICE: This blog and website are made available by the publisher for educational and informational purposes only. It is not be used as a substitute for competent insurance, legal, or tax advice from a licensed professional in your state. By using this blog site you understand that there is no broker client relationship between you and the blog and website publisher.
Blog Archive
  • 2018
  • 2017
  • 2016
  • 2015
  • 2014
  • 2013

View Mobile Version
© Copyright. All rights reserved.
Powered by Insurance Website Builder