For platform users
Insurance exists to protect you against financial risks. If you are providing goods or services using a Collaborative Economy platform, it's important that you have appropriate insurance in case something goes wrong. Many traditional insurance policies do not routinely cover you if you are engaged in commercial activity (that is, receive a payment for providing a good or service).
Even if a Collaborative Economy platform provides some level of insurance protection, you should not solely rely on this because of the exclusions that may apply. For example, you may find yourself in a position where your regular home-owner insurance is void because it covers residential use only.
Get in touch with your current insurer for clarification on whether your existing policy(ies) cover Collaborative Economy activities. If they do not, find a policy that does. The Insurance Council of Australia (ICA) has an online 'Find an Insurer' search tool that may help you.
If you need more help, consider contacting an insurance broker to help you find the best policy.
The way ride sharing premiums are calculated has changed from 1 April 2018.
From 1 April, for journeys starting in metro regions there will be a 10 cents-per-kilometre charge for CTP and 6.6 cents-per-kilometre for journeys that start in country regions. This only applies when the vehicle has a fare paying passenger.
Other than this, ride sharing operators will continue to pay a Class 1 premium like all other private passenger vehicles. This means they will continue to purchase their CTP Green Slip as usual.
The future of CTP insurance arrangements for the point to point industry (beyond December 2020 when the current arrangements are set to expire) is currently under consultation. A first consultation was released and options for new point to point CTP arrangement will be released in a further paper.
Information for new platform owners
If you have come up with a new, disruptive idea for a platform it is possible that an appropriate insurance policy does not yet exist on the market. If this is the case, you should consider contacting an insurance broker. A broker will help you identify your individual and business risks to help you decide what to insure, and how to manage those risks in other ways.
What do I need to do?
- Contact your current insurer and get clarification on whether your existing policy(ies) cover Collaborative Economy activities. If not, find a policy that does.
- Visit Understand Insurance to find helpful information on how to get the best policy.
- Find an insurer that provides cover for your needs – the ICA’s Find an Insurer search tool may help you.
- Read the product disclosure statement carefully to understand what is and isn’t covered – it is also important to note that the cheapest policy may not be the best one to suit your needs.
- If you can’t find a product that meets your needs, consider contacting an insurance broker who may be able to assist further.