We first and foremost suggest that you make sure using Uber fits within your organization’s transportation policy.

The best form of transportation is using a third-party that has adequate insurance, like a bus company. Using a bus company assumes the driver has been vetted, and there is usually adequate insurance from the bus company. We understand that utilizing a bus service is not always possible or affordable.

The issue with Uber, Lyft, and similar ride-share arrangements is that they have a very strict indemnity and hold harmless provision with the drivers, which basically states that Uber/Lyft is not responsible or would offer very low limits for any accident. Thus, the driver would have to look to his/her own personal auto coverage, but personal auto policies do not cover for-hire operations, and it is unlikely that the driver is paying for a special auto endorsement to cover him when on duty as an Uber/Lyft driver. Therefore, payment for an injury sustained in an Uber/Lyft vehicle would most likely fall upon your organization’s liability policy. However, we agree that using Uber or Lyft is probably better than allowing members to drive other members/guests around town.

Be sure to check with your national organization that will have a risk management policy regarding the use of these types of services.