A Waterloo-based insurance broker has started offering rideshare coverage, despite Uber and other ridesharing services still being illegal in the region.
 
Erb and Erb Insurance Brokers began selling the insurance packages developed by Aviva Canada earlier this month. This means Uber drivers can operate with insurance, even before the regional government has passed regulation for ridesharing services.
 
Since July 2015, Uber has operated in the Waterloo region, with many drivers operating without liability coverage. Even though passengers pay for the service, insurance companies will not cover the passenger and the driver if an accident happens.
 
The new insurance policy covers the gap between personal and commercial insurance and is an add-on to a driver’s existing policy for around C$430 yearly. It includes collisions, thefts and vandalism, as well as repair costs, injury benefits, and legal fees for both driver and passenger.  Everything from passenger pick-up to drop-off is covered.
 
Ridesharing services are illegal in Waterloo and many other areas in Canada, but the Edmonton government has passed a measure to allow such services to operate. Insurance plans for ridesharing are already approved in Ontario and are being lobbied for in Alberta. The booming growth of sharing companies such as Uber, Lyft and Airbnb are causing industry disruptions but creating great opportunities for brokers.