Insurance for On-Demand

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Overview

On-demand economy is a simple concept based on the idea of supplying consumers with a product or service they’re familiar with, but providing it faster and more intuitively than the industry ever has. Driven in part by the ease of use provided by app-based platforms.

On-demand companies are often grouped with shared economy companies, and in most cases the terms are synonymous. The shared economy refers to companies who offer products that are shared among users/members. AirBnB, Getaround and Jump Bikes are all examples of this, but so are Uber, Lyft and SideCar.

All of this leads to an industry that is projecting exponential growth. By some estimates, shared economy companies could be generating revenues of $335 billion globally as soon as 2025. Emerging markets are more accessible to on-demand companies and many of these markets are ready and willing to join the fun.

Often the backbone any on-demand company is data, and with that comes some inherent risks. Any services provided through digital platforms have the ability to fail. That means a third party like a customer can suffer a loss, financial or otherwise. Additionally, unique risks are posed depending on the service offered that can range from customer injury to theft.

 

Why is Insurance for On-Demand Organizations Important?

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.

Data Breach

Data breaches are when sensitive information is data is copied, transmitted, viewed, stolen or used by an individual unauthorized to do so. IBM study estimated that the average cost for companies who are victims of cyber attacks is a whopping $141 per record. Just look at what happened to Uber in 2016 when 57 million users data was stolen.

Cyber Attacks

On-demand companies are often victims of cybercrime such as DDoS attacks and randsomewear attacks. These attacks can lead to data being stolen or destroyed in addition to major service outages. According to a report from Kaspersky Labs the average cost of a cyber attack for enterprises grew from $1.2 million in 2016 to $1.3 million in 2017

System Failures

By nature on-demand companies are heavily reliant on back end & front end systems and third party services providers like AWS for their applications, servers and data services. Any outages, downtimes or failures can result in lawsuits from customers and independent contractors who rely on their platforms to run their business.

On-Demand Insurance Frequently Asked Questions

Types of On-Demand Companies that need insurance

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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.

John Olson, Assistant Vice President, Customer Success

Meet your specialist

Prior to joining Founder Shield in 2018, John worked as a Broker in the Reinsurance space, facilitating global coverage for multinational insurance carriers.  Since then, John has helped to build out and maintain the insurance programs for some of Founder Shield’s largest clients in the Auto and Gig Economy space, while recently taking on a larger role for our FinTech practice. Working on our Customer Success team, he works directly with insureds on facilitating and streamlining robust programs for our clients through a collaborative approach.

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Latest On-Demand
Insights


December 5 • Cyber LiabilityErrors & OmissionsGeneral LiabilityRisk Management Tips

3 Risks an On-Demand Services Company Needs to Consider

Update: We’ve released a new whitepaper examining the Sharing Economy industry. We dive into the insurance landscape, legal climate and how to approach risk management...


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November 20 • Insurance Pro Tips

5 Policies to Help Skyrocket Your On-Demand Company

Mid-market companies face unique risks as they evolve and grow, especially emerging on-demands. These policies can help to skyrocket your on-demand company.


August 19 • Worker's Compensation

Beware: On-Demand Company Workers Compensation Costs

Update: We’ve released a new whitepaper examining the Sharing Economy industry. We dive into the insurance landscape, legal climate and how to approach risk management...