Insuring the Sharing Economy: Existing Models, New Models, Traps and Mitigation of Gaps, Westlaw
By Tad Devlin, partner, & Stacey Chiu, law clerk, both at Kaufman Dolowich & Voluck in San Francisco, published in Westlaw June 2017.
The number of Americans participating in the sharing economy (aka the “gig economy” or “collaborative consumption”) is growing exponentially. Insurers have been nimble and creative in responding to the changing landscape of the sharing economy, gig workforce, and particular risks associated with these new business models. This article explains the different modes of commerce, corresponding insurance and potential gaps to help mitigate risk and plan ahead. The article also reviews the rise of “on-demand insurance” designed for the sharing economy and new insurance market entrants Slice and Metromile, which seek to provide disruptive models of insurance coverage for the sharing economy and its community.