Using Uber or Lyft to Transport Patients/Clients
Increasingly, home care agencies are turning to Uber and Lyft to transport clients. What are the insurance coverage implications of doing so?
 
Most insurance policies for home care agencies include a coverage line ‘Non-Owned and Hired Auto’. Do Uber/Lift services trigger either coverage? Let’s look at a typical insuring agreement:
 
     Hired Auto Liability: The insurance provided under the Bodily Injury & Property Damage Liability coverage               applies to "bodily injury" or "property damage" arising out of the maintenance or use of a "hired auto" by you         or your "employees" in the course of your business.
 
     Non-Owned Auto Liability: The insurance provided under the Bodily Injury & Property Damage Liability                     coverage applies to "bodily injury" or "property damage" arising out of the use of a "non-owned auto" by any         person in the course of your business.

  PLEASE CHECK YOUR OWN POLICY TO DETERMINE YOUR COVERAGE! HAPPY TO HELP, E-MAIL [email protected]
 
With the definitions of ‘hired auto’ and ‘non-owned auto’ as follows:
 
     "Hired auto" means any "auto" you lease, hire, rent or borrow. This does not include any "auto" you lease,               hire, rent or borrow from any of your "employees", your partners or your "executive officers", or members of         their households.
 
     "Non-owned auto" means any "auto" you do not own, lease, hire, rent or borrow which is used in connection         with your business. This includes "autos" owned by your "employees", your partners or your "executive                   officers", or members of their households, but only while used in your business.
 
We can discard the non-owned auto section, as an Uber/Lyft vehicle does not meet the definition. But is an Uber/Lyft vehicle a ‘Hired Auto’? It depends.
 
To meet the definition of a ‘Hired Auto’, the vehicle in question must be leased, rented, hired or borrowed by you (the named insured) or your employees and used in the course of your business. That tells us that who arranges for the Uber/Lyft service is critical to coverage:
 
     If your employee arranges the Uber/Lyft, and your agency pays for it, we believe that coverage under most            ‘Hired Auto’ sections will be triggered.
 
     If your client arranges and pays for the Uber/Lyft, we believe that coverage WILL NOT be triggered.
 
Note that there has not yet been a coverage challenge in court on this issue. Inevitably there will be, and at that time we will know for sure. This is our best guess at this point.
 
Insurance policy wordings differ, sometimes substantially. Check the wording on your policy to determine if your policy will provide coverage!




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