Few businesses or commercial models have come under as much fire as Uber in recent times, with nations from Bulgaria to Australia having moved to restrict the company’s operations.
Much of this has to do with Uber’s vague categorisation as a business, as it’s hard to determine whether it’s a tech venture or a private hire taxi firm. This leads onto other issues concerning the payment of its drivers, while representatives have also suffered at the hands of vague insurance coverage.
In the post below, we’ll explore this in further detail, while asking how businesses and drivers alike can avoid the pitfalls of commercial and professional car insurance.
Learning Lessons from Uber – Why Clarity is Key
While Uber and Lyft drivers may well think that they’re covered if they get into an accident, recent evidence suggests that this may not be entirely true.
The issue here is confusion surrounding the extent of coverage, as while representatives claim that coverage begins when the app is turned on, further investigating reveals that the effectiveness of insurance depends on what phase of the ride you’re in.
If there is a passenger in your car, for example, the full company policy will apply and provide coverage in excess of £1 million. If you’re searching for your customer or have just dropped off a passenger, you find that you’re only covered by a limited policy.
This means that you’ll need commercial insurance to plug this gap, and ensure that you’re comprehensively covered at all times while out on the open road.
Gap Insurance – Protecting your Company Vehicles at all Times
This issue underlines the importance of clarity when dealing with insurance, as employers and their drivers must collaborate to ensure the most comprehensive level of coverage possible.
This will involve a number of variable insurance products, including so-called GAP insurance. This refers to the actual difference between the value of an individual car and the balance owed on any financing repayments, and it will financially plug this void in the event of an accident or collision.
On a similar note, commercial firms may also want to take out extended warranties on their vehicles. This works particularly well with high value vehicles, as an advanced BMW warranty could help to protect against various faults that are rarely covered as part of standard policies.
This may be particularly effective when dealing with second hand cars, as this type of vehicle will typically be more likely to experience electrical or mechanical failings on a more frequent basis.
The Last Word
With these types of insurance product and a willingness to work closely with your employees, you can create comprehensive coverage across a diverse range of policies.
This removes the vagaries surrounding commercial vehicle insurance, while also protecting any investment that you’ve made in your cars, products or drivers.