A bill, authored by Assemblywoman Susan Bonilla, which clarifies insurance coverage plans for transportation network companies (TNC) and requires important disclosures to TNC drivers that ensure all parties are aware of the insurance policy coverage in place, was approved by the Assembly this week.
“While I am in full support of new innovative business models, we must ensure that drivers and consumers are protected,” said Assemblywoman Susan A. Bonilla (D-Concord). “As transportation network companies (TNC) have grown, gaps in insurance coverage have been identified. This bill addresses the concern and clearly defines when commercial activity begins and ends, and who is responsible for coverage at all times.”
AB 2293 will do four things:
1. Require TNCs to disclose to drivers upfront that their personal insurance may not apply when engaging in commercial TNC activities.
2. Define in statute that TNC activities begin once the “app” is turned on and the TNC services end when the “app” is turned off.
3. AB 2293 clarifies that the TNC business company insurance is the primary insurance coverage.
4. Require TNCs’ liability insurance to defend their drivers when the driver has a claim or accident.
“Ultimately, this measure achieves a balance between important consumer protections and maintaining an environment where transportation business innovation can thrive.”
AB 2293 will be heard next in Senate policy committee.