Uber and conveyance

[etimer]

"ISO Personal Auto Policy, there is no coverage for an insured’s ownership or operation of a vehicle while it is being used as a public or livery conveyance, except that the exclusion does not apply to a share-the-expense car pool. "

Now enter Uber and Lyft. I was on a Linkedin site and there was a post saying things such as -- "Entrepreneurs and innovators are known for not paying too much attention to playing by the rules." The same gentleman was saying that ISO should make an exception and cover Uber and Lyft on their PAP.

Forty years ago I was in the contract delivery business and had a commercial policy. Therefore I took the opposite opinion and considered the idea that, if you want to play in the taxi sandbox, you should be willing to pay the freight (premium for commercial policy). I know the cost to a new business often stinks but that is how insurance rating works. Should individuals with a PAP subsidize the rather high liability business, of public conveyance?

Then you read articles like --

"Lyft pulling up stakes unless paid ride rules change. Less than a week before new regulations regarding paid rides in Houston take effect, one of two companies that launched in the city is preparing to stop providing rides rather than use a city-required procedure to conduct background checks.

“We’ve made the very difficult decision that if Houston doesn’t amend its process, we’ve decided we have no choice but to pause operations,” said David Estrada, vice-president of government operations for Lyft."

So the company doesn't want to do back round checks? Would anyone want their young daughter getting into a strangers car and nobody has checked into the drivers history.

Such a practice gets you this --

Uber driver in Orlando arrested for groping passenger. ORLANDO --

A driver for the Uber ride-sharing service in Orlando has been arrested after police said he inappropriately touched a woman he picked up while on the job.

Orlando police said the victim's boyfriend requested an Uber driver to pick up his girlfriend last Friday, Sept. 19, and meet him at an agreed location.

Police said Botros then stopped the vehicle and placed his hand inside the victim's blouse. The woman told the driver several times not to touch her and to take her to her destination, where her boyfriend was waiting for her."

There is no guarantee that even a back round check would stop a driver from going to the dark side, it sure would weed out drivers that have a history."

Erie is ready to make an exception on the conveyance subject and are trying it out in two States. Hm? Why don't we just make an exception for all people that use their vehicles in commercial endeavors. The electrician with that dual wheeled truck, that has his trailer full of equipment attached to the ball could go into the PAP pool. Maybe ISO doesn't know what is going on and they should accept all commercial endeavors in the PAP.

Just do away with the BAP and throw everyone into the PAP pool. Stop the well honed underwriting of identifying risk and trying to prepare competitive pricing.

To me it seems that Uber and Lyft want all the business, all the money without participating in the other side, the cost of doing business side. I mean if the company isn't willing and ready to pay for a back round check is telling. It is telling because it shows a lack of responsibility.

Maybe the liability portion of my homeowners policy is ready to take over my E&O coverage?

I've spent time today reading court cases about the pizza delivery drivers using personal insurance. The cases vary from State to State and it is a gray area. If people carried the correct type of insurance for the risk we wouldn't find questions such as this --

"Last Sunday I was hit, and my car totaled, by a Pizza Hut delivery driver. His personal insurance told me that because he was on the clock he is not covered. So that falls back to my insurance, but I don't think I should have to pay my deductible just because some kid ran a stop sign. I'd like to find out if he is insured by Pizza Hut while on the job. "

I think I read that Papa John's makes their drivers get a commercial policy.

Just some things to consider on this winter day.

[rcenters]

On the pizza delivery driver part - would most personal carriers pursue a subrogation against the uninsured driver and/or the pizza restaurant itself? If not, why not? Is it because the pizza restaurant would not likely be found liable? (I know why they might not pursue the uninsured kid doing the delivery, because he may have no money to recover).