Every on-demand company is different but they all share (at least) two common exposures: technology professional liability and cyber liability. The possibility of a system failure or hacking attack is always there too and any on-demand company that has to shut down temporarily runs the risk of losing money and customers. Cyber extortion and ransomware appear in the headlines on a monthly basis.
And don’t forget about data breaches! These gems can cost companies millions of dollars in legal, forensic, and consulting expenses. Uber found this out first hand in 2016 when they had to put executives in front of congressional panels following a breach and the questionable handling of its fallout.
But there are also risks that are unique to each company. An on-demand car-sharing company will need to make sure it and its drivers have adequate auto insurance. A bike share company will need to have products liability insurance in case someone is hurt when a bike breaks. Many different types of companies use proprietary code that they’ll want to protect if someone sues for intellectual property infringement (or if someone infringes on their rights). An on-demand dog sitter will need to have the right general liability insurance in place in the unfortunate event that one of the pooches gets hurt.