E-scooters: Increase in demand and insurance risks

E-scooters: Increase in demand and insurance risks | Insurance Business Australia

E-scooters: Increase in demand and insurance risks

As the demand for e-scooters continues to rise, the insurance risk that they present is increasing in tandem, according to Gallagher Bassett.

The popularity of e-scooters in Australia has resulted in an increase in the development of insurance liabilities and related issues.

Gallagher Bassett clarifies that car insurance does not cover e-scooters. Therefore, a car insurance policy would not cover any property repairs or medical expenses that come with e-scooter accidents.

“Get into an accident when you’re riding your e-scooter, and you may have to pay out-of-pocket for any property damage or medical expenses that occur because of the accident,” Gallagher Bassett said.

“If you damage another person’s property with your e-scooter, you may be held liable for any repairs. The same goes with if you injure a pedestrian and your liability for any medical expenses incurred.”

E-scooter renters also sign a waiver to give up the right to sue an e-scooter company in case of an accident or injury. However, it does not eliminate insurable risk.

“Even with signed wavers, there are other insurance risks that rental companies will face. Some examples include e-scooter riders hitting a pedestrian, getting injured while riding, creating trip hazards for people passing by on the street, or limiting access for disabled people,” Gallagher Bassett said.

“Understanding what insurable risks that e-scooters present can help you. You’ll gain an understanding of how to better manage insurance claims made by electronic scooter riders.”