Transportation Network Company / Shared-Economy

Are you already in the livery business or looking to be the next Uber, Lyft or DoorDash company? Insurance is a mandatory requirement for all for-hire businesses, including rideshare, TNC, and other shared-economy type business models.

As your research has probably showed you, shared economy is a niche industry and finding experienced brokers to help is a must. There are few insurance companies for shared economy, and we have secured company appointments with all of them.

After a thorough review of your business plan, American Business Insurance Services will walk you through every necessary step to secure a customized auto insurance policy for your new peer-to-peer transportation company.

At American Business Insurance Services, we have over 35 years of experience insuring public autos such as taxis and limos, as well as other business auto fleets. Over the past decade, we have evolved with the transportation industry and adopted technology that will take us into the future with you. Through a marriage of transportation insurance know-how, APIs that interface your application to our customized transportation insurance policies, and new markets that nobody else has, we are the right fit for your new venture!

The key to these transportation insurance policies is that these companies are looking for peer-to-peer structures. We are referring to shared-economy type of platforms such as Uber, Lyft, HyreCar, and even AirBnB (though not transportation). So, you provide the platform that dispatches and manages everything, and the people that use your platform share their information with each other.

Because we have a staff of dedicated in-house programmers, this gives us the ability to literally design any kind of transportation insurance product that you could dream of. Billing, vehicle changes, driver changes, vehicles on and off platform, periods 1,2,3, and even our proprietary Period X™ and Period 0™ (ask us about this) can be covered and billed on a per mile, per day, per anything basis! Not only that, we even have auto insurance carriers that we work with that can integrate their SDK into your application and increase or decrease driver insurance premiums based on how safe your drivers are month-to-month! You control the price.

We know, we know, we are totally geeking out over here. What in the world kind of auto insurance broker gets excited about SDK’s, per-mile insurance, and TNC companies? Our company! Give us a call or fill out the quick form above – let’s talk about transportation insurance solutions for you!

Want to learn more about starting your own TNC business? Click here for A Detailed Guide To Getting your TNC off the Ground.

Below is a list of different types of peer-to-peer transportation company insurance available and an explanation of what those types of auto insurance policies cover.

Auto Liability Insurance

Auto Liability, a mandatory insurance, protects you and your auto business from financial losses when you are involved in an at-fault automobile accident. Traditional transportation insurance policies are issued on a scheduled auto basis, which means the vehicle must be on the policy at the time of loss for coverage to apply. If your Transportation Network Company (TNC) is found liable for an at-fault accident, your TNC would pay to fix the damaged vehicle, for medical bills of the passengers in that vehicle(s), and also for the medical bills of the passenger(s) in your own vehicle. Your P2P transportation insurance policy would also pay for court and legal expense fees if a third party decides to file a lawsuit against you in regards to an auto accident.

  • Auto Liability limits are issued with either a Combine Single Limit (for example the insurance policy written for $500,000 will pay a maximum of that amount per claim) or as a Split Limit. In most cases, Auto Liability would be applicable on a periodical basis. Period 1 would have the lowest coverage/ limits, Period 2 state min, and Period 3 maximum liability available through the insurance carrier. Customization would be applicable based on the individual need of each company’s structure.
  • Auto Liability covers Bodily Injury & Property Damage to other party
    • o If written as a Split Limit, there are different limit amounts for each auto liability coverage: Bodily Injury Per Person / Max Bodily injury per accident / Max Property Damage per accident. For example, a policy with a split limit of $100,000/300,000/50,000 would pay a maximum of $100,000 bodily per person, per accident with a maximum of $300,000 bodily injury per accident (no matter how many people are in the car). The last number, $50,000 is the maximum that the auto insurance policy would pay for property damage to others.

Physical Damage Insurance

Physical Damage insurance coverage protects shared vehicles from damages, whether or not the driver is considered at fault for an accident. This Physical Damage insurance is important if leasing or financing a vehicle, since you have an outstanding loan or lien on the vehicle. This auto coverage is mandatory if your company wants to protect their vehicle from damages, whether the driver is considered at fault or not, and also protects the loan or lienholder on the vehicle if not owned outright. All Physical Damage insurance policies have a deductible that usually ranges from $500 to $5,000. Physical Damage insurance is written either on a Comprehensive & Collision basis or Collision & Specified Perils. Below are definitions for each type of Physical Damage insurance policies:

  • Comprehensive Physical Damage: covers damage to the vehicle caused by events that are out of your control, such as theft, vandalism, fire, accidents with animals, weather/acts of nature, and more
  • Collision Damage Protection: covers damage to the vehicle caused by the scheduled driver. It also allows faster repair of the vehicle if involved in a not-at-fault accident because you can file the claim with your insurance company and start seeking payments to get the vehicle fixed if damages are over the listed deductible. If the other insurance company accepts liability, the TNC policy deductible is waived and the insurance company will subrogate (collect money) from the at-fault party. If there were no collision coverage, in order to get the car fixed, you would have to wait for the other party to accept liability and/or pay for the damages yourself while the claim process happens.
  • Specified Perils: covers damages resulting from specific events only that are pre-defined within the insurance policy, such as fire, theft, lightening, windstorm, smoke, and more