Insurance for Micromobility

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Overview

Micromobility is an industry focused on evolving transportation — primarily, the first and last mile between your origin or destination and the primary public transportation hub. Whether you are offering bikes or scooters, dockless or docked, the goal is to provide an accessible, on-demand transportation alternative.

Micromobility has driven unprecedented investor interest in recent years, generating a number of market leaders. Automakers are also taking notice; consider the Ford-backed scooter-sharing platform, Spin. A small crew can deploy a fleet of GPS-enabled scooters or bikes in a mere few hours, requiring minimal maintenance and no infrastructure changes.

The industry is rapidly evolving, with many new entrants both at home and abroad. Market share is the name of the game, and often the key barrier to rapid expansion are insurance requirements at the city and state level.

E-Scooters

From the early days in Santa Monica, availability has expanded nationwide with many cities onboarding this mode of transportation. Companies like Bird and Lime have seen massive growth in the past two years, and many new entrant are launching in cities this year.

Bicycles (Dockless and Docked)

Since the introduction of the first domestic dockless bikeshare system in Seattle in the summer of 2017, cities and universities have quickly adopted and introduced programs. Users left their bike locks at home as 2018 saw 1.6K bikeshare systems worldwide.

Application Process

Launching a bike sharing or e-scooter fleet in a new city can be confusing, and having the right insurance can make or break your application with a city. We’ve mapped out the three key steps to ensure you have the right coverage and are positioned for rapid growth.

1

Initial Consultation

From San Francisco to Ft. Lauderdale, Chicago to Austin, cities require differing levels of coverage to operate within city limits. Founder Shield has amassed knowledge of the insurance requirements of all major U.S. cities and will review your Permit Application to ensure all areas are met. If you’re seeking to rapidly expand in the U.S. — no problem! We know exactly what program structure you need to effectively roll out.

2

Application Support

Save the back and forth, countless email chains, we know exactly what information is required to secure effective coverage. Only a few insurance carriers will touch the micromobility space, and we work closely with all of them! Our partners have the capability to provide a true worldwide solution — a critical element as you expand in the U.S. and abroad.

3

Scalable Coverage

Moving into a new market? Expanding globally? We assist in the reporting to ensure your program always reflects existing operations and offer true global capabilities. We partner with leading mobility and on-demand insurance carriers that craft custom policies designed to scale as you do. You focus on expansion, we’ll make sure insurance doesn’t become a barrier to growth.

What are the minimum insurance requirements?

It will depend on what city you plan to operate in, but typically you will need to meet the below requirements (with the city being named as an additional insured):

Insurance Requirements

General Liability

$1M per occurrence, $2M aggregate

HNOA

$1M per occurrence

Umbrella

$5M per occurrence

Performance Bond

Cities where these requirements apply

  • San Francisco
  • Los Angeles
  • Denver
  • Austin
  • Miami
  • Portland
  • Indianapolis
  • Seattle
  • Dallas
  • Chicago

Types of Micromobility Companies that need insurance

  • Operators
  • Telematics
  • Fleet Services
  • Personal Micromobility
  • Micromobility Platforms
  • Supply Chain & Manufacturers

Micromobility Frequently Asked Questions

The cost of insurance for micromobility companies will depend on several things, including the company’s size and development stage. Other factors include:

  • Exposures: risks being insured
  • Company practices: views on safety, compliance, and risk management
  • Program structure: the amount of deductible and willingness for a company to assume more risk
  • Claims history: the type and amount of past claims against the company

Get your free Micromobility Insurance Whitepaper

How it works

Finding insurance coverage doesn’t have to be painful. We aim to make the purchasing experience as streamlined & intuitive as possible.

1
Get a quote

Use our custom built online portal to get quotes fast. We automate clerical tasks that plague the traditional insurance brokerages, giving us more time to be responsive and alert to your company’s needs.

1
Get a quote

Use our custom built online portal to get quotes fast. We automate clerical tasks that plague the traditional insurance brokerages, giving us more time to be responsive and alert to your company’s needs.

2
Pair with a specialist

No two organizations are the same. Our team of coverage experts partners with your team to engineer your risk management strategy, together. We take the time to understand the intricacies of your company to get you the best possible coverage.

2
Pair with a specialist

No two organizations are the same. Our team of coverage experts partners with your team to engineer your risk management strategy, together. We take the time to understand the intricacies of your company to get you the best possible coverage.

3
Stay one step ahead

To do better, you need to know better. With changing political, technological, legal and economic landscapes, staying ahead of the curve is critical.

Our in-house team is tapped into the latest developments of your industry, proactively ensuring you’re covered.

3
Stay one step ahead

To do better, you need to know better. With changing political, technological, legal and economic landscapes, staying ahead of the curve is critical.

Our in-house team is tapped into the latest developments of your industry, proactively ensuring you’re covered.

Justin-Kozak, Vice President
Justin-Kozak, Vice President

Meet your specialist

Justin joined Founder Shield to take on the challenge of structuring insurance solutions for emerging industries. With a focus on management, professional and casualty lines of coverage, Justin has helped over 650 clients over the past 3.5  years secure a tailored insurance program focused not only on protection but also on growth and scalability. With expertise in mobility, IP, and financial services risk Justin has emerged as a prominent thought leader in the industry today.

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