Uber details insurance policy at hearing

Sept. 10--An Uber spokesman testified at length Tuesday about the San Francisco company's insurance policies at a hearing before the Pennsylvania Public Utility Commission, detailing when drivers for the ride-sharing platform are covered. But a representative of the Pennsylvania Insurance Federation argued that the policies Uber seeks to provide are not adequate for the risk to drivers and passengers.

Uber and its rival ride-sharing company Lyft are both operating under temporary authority in Allegheny County after moving into the Pittsburgh area earlier this year. The ride-sharing companies connect drivers with passengers via smartphone apps. The fact that drivers are operating their own personal vehicles has led to questions about insurance coverage.

Both ride-sharing companies are seeking permanent experimental authority to operate in the county and other parts of Pennsylvania.

Henry Gustav Fuldner, Uber's risk management chief, testified Tuesday that the company does not plan to require its drivers to notify their personal insurance companies they are driving for a ride-sharing company. "We are not party to that agreement," Mr. Fuldner said, "and such notification would be unduly burdensome."

That kind of notification is not "customary" under other uses of personal automobiles in the course of business, he added, such as home health care workers or pizza delivery drivers.

Much like a similar hearing for Lyft last week, a large portion of Tuesday's testimony focused on three "stages" of coverage that Uber provides: When a driver has the app open and is logged in but does not have a passenger; when the driver is en route to pick up a passenger; and during the ride itself. Uber's insurance company is Richmond, Va.-based James River Insurance.

"As long as [a] driver has access to the Uber app, Uber provides coverage," Mr. Fuldner testified, but the first "stage" differs slightly from the second and third, since the risk is lower with no passenger in the vehicle.

Jonathan Greer, vice president of the Insurance Federation of Pennsylvania, said the coverage James River provides Uber drivers is not suitable.

"It's remarkably deficient," Mr. Greer said, "because they did not get a policy with James River and have no prior relationship James River. It's a much different relationship than they have with their personal auto insurer."

Today, the hearing for Lyft's permanent application resumes, and it also is expected to focus on issues of insurance.

The entire proceeding may not be valid for very long, as state Sen. Wayne Fontana, D-Brookline, has introduced legislation to create a new category of service for ride shares, which would be called transportation network companies.

The companies would be subject to PUC oversight and insurance requirements, among other things, under Mr. Fontana's proposed legislation.

The PUC chairman and commissioners have expressed support for Mr. Fontana's legislation.

Kim Lyons: [email protected] or 412-263-1241. On Twitter: @SocialKimly.

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