Sharing economy companies in mobility rentals and subscriptions, as well as short-term rentals, should make the extra effort to understand their insurance risks and advocate for themselves with carriers. This is important because insurance costs can be a significant expense for these types of businesses, and by demonstrating a proactive approach to risk management, companies can negotiate more favorable pricing and policy terms.
Firstly, insurance costs can be a significant expense for these types of businesses, and by demonstrating a proactive approach to risk management, companies can save money on their premiums. By showing carriers that they are responsible and effective in managing risk, companies can negotiate more favorable pricing and policy terms.
Secondly, because these types of businesses often operate in a regulatory gray area, carriers may be hesitant to offer coverage or may offer coverage at a high cost. By working to understand their unique risk profiles and making their case to carriers, companies can help to bridge the gap between the insurance industry and the sharing economy.
Finally, insurance coverage is critical for protecting these businesses from financial losses due to unforeseen events, such as accidents or lawsuits. By taking a proactive approach to risk management and ensuring they have appropriate insurance coverage, sharing economy companies can protect their financial stability and reputation, and ensure they are able to continue operating in the long term.