TNC Endorsement

[TigerAgent]

I am giving a presentation about the Transportation Network Companies endorsement for ride sharing drivers and wanted to know if there are any agents that regularly write policies with this endorsement. Just wanting to know if there are ever any coverage gaps or pitfalls I should include in my presentation. Thanks!

 

[InsCommentary]

What endorsement is that? Many carriers have their own and ISO has two coverage endorsements, one for Period 1 only and the better one for Periods 1 and 2. Who is your audience?

One thing to make them aware of is that they are engaged in a BUSINESS and their exposure to liability may extend beyond the auto, depending on how they conduct themselves. Anyone in business for themselves needs a BOP or CPP that includes business liability beyond the auto exposure.

Also, if you read most of these endorsements, they refer to transporting people. If a TNC driver is also delivering food or merchandise, these endorsements may not work. In that case, they need a BAP written and rated for that exposure.

 

[VolAgent]

Also, if you read most of these endorsements, they refer to transporting people. If a TNC driver is also delivering food or merchandise, these endorsements may not work. In that case, they need a BAP written and rated for that exposure.

Funny you mention that. While I haven't read the endorsement, I was talking to someone at Grange and he mentioned it does cover things like UberEats. Based on the conversation, I believe it only covers period 1, when the app is on but no fare or on the way to a fare.

 

[InsCommentary]

Funny you mention that. While I haven't read the endorsement, I was talking to someone at Grange and he mentioned it does cover things like UberEats. Based on the conversation, I believe it only covers period 1, when the app is on but no fare or on the way to a fare.

I believe that's true. There would likely be coverage for UberEats during Period 1, but not Period 2. It's possible that Uber's BAP covers both Periods 2 and 3.

But, even if it does, the BAP provides no products or completed operations coverage. The driver picks up a boiled shrimp party tray at 11 a.m. in Phoenix in August, stops for an hour or two for lunch while the tray remains in the back seat, then delivers it. Good luck with that lawsuit, buddy.

Lyft has a page devoted to happy stories about their drivers going beyond the call of duty. In one case, the driver took a handicapped person to the grocery, went with them shopping, and put the food up at home. Great story, but there is likely a liability exposure beyond the auto.

Folks engaged in this activity are operating a business. Until someone develops a product for the exposure, they have coverage gaps. Not that they'd buy the product anyway.

 

[VolAgent]

I believe that's true. There would likely be coverage for UberEats during Period 1, but not Period 2. It's possible that Uber's BAP covers both Periods 2 and 3.

But, even if it does, the BAP provides no products or completed operations coverage. The driver picks up a boiled shrimp party tray at 11 a.m. in Phoenix in August, stops for an hour or two for lunch while the tray remains in the back seat, then delivers it. Good luck with that lawsuit, buddy.

Lyft has a page devoted to happy stories about their drivers going beyond the call of duty. In one case, the driver took a handicapped person to the grocery, went with them shopping, and put the food up at home. Great story, but there is likely a liability exposure beyond the auto.

Folks engaged in this activity are operating a business. Until someone develops a product for the exposure, they have coverage gaps. Not that they'd buy the product anyway.

Ignoring your other valid points for now. He said the gap exists in period 1, app on but waiting. I have seen other posts, blogs, articles saying there is coverage on the way to pick up a fare and while transporting the fare. As I recall, the coverage was lower on the way to pick up than with a fare.

 

[TigerAgent]

In my area Uber and Lyft are just getting off the ground and im not even sure if Uber eats is available yet, but you do raise some good points. It is my understand that during period 1 the minimum liability with the endorsement goes to 50/100/25 even if the base policy is lower, and during periods 2 & 3 liability goes to a cool million. Can anyone confirm this?

 

[InsCommentary]

Ignoring your other valid points for now. He said the gap exists in period 1, app on but waiting. I have seen other posts, blogs, articles saying there is coverage on the way to pick up a fare and while transporting the fare. As I recall, the coverage was lower on the way to pick up than with a fare.

Both ISO endorsements cover Period 1 while waiting for a fare. Once a fare is accepted, Period 2 begins and the ISO "limited" form no longer provides coverage. Coverage doesn't require a passenger.

But even the definition of TNC could be problematic for UberEats because the language was drafted before it was ever announced, as I recall:

"Transportation network platform" means an online-enabled application or digital network used to connect passengers with drivers using vehicles for the purpose of providing prearranged transportation services for compensation.​

I don't know if Uber uses the same app or network for passengers and food/merchandise transportation. If not, then the system is not used to connect "passengers" with drivers.

 

[VolAgent]

Both ISO endorsements cover Period 1 while waiting for a fare. Once a fare is accepted, Period 2 begins and the ISO "limited" form no longer provides coverage. Coverage doesn't require a passenger.

But even the definition of TNC could be problematic for UberEats because the language was drafted before it was ever announced, as I recall:

"Transportation network platform" means an online-enabled application or digital network used to connect passengers with drivers using vehicles for the purpose of providing prearranged transportation services for compensation.​

I don't know if Uber uses the same app or network for passengers and food/merchandise transportation. If not, then the system is not used to connect "passengers" with drivers.

I was referring to there is no coverage from Uber or Lyft in Period 1. Also, I don't believe they use the ISO form as he specifically said, many with a TNC endorsement do not coverage things such as UberEats, we do.

I will have to look later for the endorsement.

 

[InsCommentary]

In my area Uber and Lyft are just getting off the ground and im not even sure if Uber eats is available yet, but you do raise some good points. It is my understand that during period 1 the minimum liability with the endorsement goes to 50/100/25 even if the base policy is lower, and during periods 2 & 3 liability goes to a cool million. Can anyone confirm this?

Are you talking about Uber's BAP rather than a PAP insurer's forms? I believe Uber provides minimum limits that go to $1M if there's a passenger in the car, but I haven't looked at their policy in a long time. I believe it's available on their web site. When I looked it was a straight ISO BAP. The last time I looked, the Uber BAP didn't provide any physical damage coverage, something that's an option with the ISO forms except that they provide no coverage of any kind for Period 3.