Ride-sharing company Uber has reached an agreement with major insurance companies on a model bill that would cover drivers anytime they are working.
"It's a national agreement with a number of major insurance carriers to come together and agree on some negotiated insurance language for state legislation of transportation network companies," said Meghan Joyce, general manager of Uber East Coast. "We can use (the agreement) to provide clarity to insurance across the nation."
Uber and Lyft — which also signed the agreement — have been criticized for gaps in insurance coverage, as well as blurring the line between personal and commercial insurance policies. The agreement, which will be sent to state legislators across the country, provides lawmakers with a compromise both sides have already agreed to.
"Auto insurance carriers, Transportation Network Companies, and trade associations stand together in support of this insurance legislation, and encourage you to utilize this language," the letter to legislators says.
Uber and Lyft have faced scrutiny from cab drivers and local governments that want regulations for ride-sharing companies to put them on a level playing field with taxi companies.
Gov. Charlie Baker's administration is in the middle of its own regulatory process, and expects to file a bill in the coming weeks.
Bill Pitman, a Baker spokesman, said: "The administration continues to engage with municipalities, industry leaders and public safety advocates as it works to draft a statewide regulatory framework that embraces innovation and enhances the safety of riders and drivers."
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