Ride-sharing company Uber Technologies Inc., has reached its current standing as a leader in its industry because of the importance it gives to insurance, says Andrew G. Simpson of Insurance Journal. In its latest regulatory filing, the company states that they ‘depend heavily’ on many types of coverage to address numerous risks they face.
In fact, reports reveal that the company has around $3 billion in insurance reserves towards the end of 2018. This is significantly higher than its 2017 figures in which it recorded $2 billion, which in itself is a momentous increase when compared to 2016 figures.
A cursory review of its website shows that it requires prospective drivers to have coverage if they prefer to use their own cars. Moreover, it says that drivers can have perks such as health insurances for drivers and their family.
Other types of insurances Uber and its driver’s avail include automobile liability, comprehensive and collision, as well as physical damage coverages. It also has coverage for uninsured and underinsured drivers.
‘Many potential liabilities’
According to Simpson, the company is constantly in the risk of undergoing a number of potential liabilities. It is facing various sources of legal issues every day with the risk of vehicular accidents, injuries, passenger assaults, and other similar incidents. In addition to operational risks, the company is also in danger of encountering cyber issues and damages to its brand and reputation.
With these threats to its operations and business, Uber relies on insurance to cover possible losses. In the recent filing, Uber reports that it suffered a $3 billion loss for its operations in 2018. This is compared to its $11.2 billion revenues on that same year. The company’s total operating losses $10 billion in the last three years.