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Self-Insuring: What You Should Know

Self-Insuring: What You Should Know

The sharing economy has changed the way that businesses and individuals look at the world. If you need a ride you may no longer hail a cab, but use an app on your phone to call a car. If you have unexpected expenses, you may sign up for a crowd funding site. If your business seems too small to get insurance, you may band together with other small businesses to get insurance for your group. This outside the box thinking, while admirable, does present some challenges when it comes to insurance and those unexpected expenses it is meant to cover. Underwriting Can Be Tricky A number of crowd-sourcing type self-insurance vehicles have begun to hit the market in response to increasing health insurance premiums. These can be used an alternative to traditional health care plans, and may even fulfill the Affordable Care Act requirement for insured individuals at a reduced cost. What’s not to like about that? Many of these programs have strict application requirements, which are submitted online. Applicants are pooled into groups with like individuals: similar age, similar health status, certain activity levels, etc. Premium investments are dependent on these factors, so some applicants may fudge the numbers a bit in order to qualify for lower cost. The pool of resources in these groups is significantly smaller than that of an insurance company, which may not be underwriting the group coverage. Dishonest individuals make the same small payments as everyone else, but use far more of the resources. They may eventually be found out, but have used more than their fair share of the premium pool, causing...
Discrimination and the Sharing Economy

Discrimination and the Sharing Economy

The United States has, over many decades, grappled with discrimination issues. The current social and political climate with regard to racial discrimination, age discrimination, gender identity, and even sexual orientation only seems new because the media and the Internet make it seem so. Earlier this year a transgender woman was denied a room by an Airbnb host. A blind woman with a service dog was denied a ride by an Uber driver. Fortune.com recently wrote about all forms of discrimination in the sharing economy. There is a murky line between federal anti-discrimination laws such as the Civil Rights Act of 1968 and the rights of private citizens to decide with whom they will interact.  Cases are making their way through various state and federal jurisdictions trying to determine where one person’s rights end and another’s begin. Despite the unanswered questions of legality, lawsuits on the topic are being filed every week. If you drive for a ridesharing service or list your home on a homesharing site, this is what you need to know about insurance coverage in the event of a discrimination claim. Auto Insurance & Discrimination Is there coverage for discrimination on your auto insurance policy? This one has an easy answer: there is no coverage for discrimination under the Personal Auto Policy (PP0001). The liability portion of the policy states it will pay for bodily injury claims as the result of an auto accident and does not contemplate non-accidental injury. In additional, there is an exclusion for intentional injury, as well as the standard exclusion for injury caused by vehicles being used as livery or public conveyance....