Uber, Airbnb and VRBO may increase your personal liability risk
We live in a digital world that now allows us to share everything from our car, bike, boat, apartment and even our home with total strangers. Smartphones, and the applications that can be added, offer many useful tools, but some of these things create new and increased liability for you. Before you decide to jump into the sharing economy consider the following:
· Do these sharing sites have the ability to protect your confidential information? Many times you are giving your credit card information to companies that may not have the ability to protect it.
· If you use Airbnb to sublease your apartment, you might check your lease. Many lease agreements have “no sublease” clauses that do not allow for this kind of activity. Also, some big cities are now actually considering outlawing the Airbnb services as it reduces hotel/motel taxes.
· Uber offers a taxi service where individuals can offer rides to those who subscribe. Are you confident that these individuals have had proper background checks? Are they experienced drivers? Do they have the correct insurance? Remember, even in states that have mandatory auto insurance laws, over 25% of drivers don’t have insurance.
· Personal auto insurance issues should be considered if using your car for hire. There is a big difference in the auto insurance world between a car pool for work and being paid to deliver people.
· If you rent your primary home to others, it may limit your personal insurance coverage. Call our office for a review.
The use of the new sharing economy will most likely continue and may be a good way to make money. However, if you have an uninsured claim, the cost may be much greater. Be aware that using these services may increase your risk of loss. Mid States Insurance Agency has two separate and distinctive departments with separate goals:
We are a full service independent insurance agency with the ability to help with all lines of insurance from personal auto, home, umbrella, boat, motorcycle, life and health, to the business owner with complex needs. We represent many of the TOP insurance carriers and are available to listen, learn and guide you though your insurance needs. We will take a comprehensive approach to your insurance that considers the best balance of coverage and cost. We are proud to be licensed in Illinois, Kansas, and Missouri.