gig economy

Sharing services, most commonly offered via mobile applications, allow individuals to act as taxi drivers, hoteliers, etc. when it suits them, permitting clients to procure such services at a moment's notice. These business models leverage the global connectivity engendered by the proliferation of mobile applications, thereby allowing individuals to create and participate in their own micromarket economies. Since gig economy business models are disruptive in nature, they have been exposed to much greater litigation risk than traditional businesses, which may present higher exposure for insurers when compared with businesses of comparable size in more traditional industries. The host of new liability issues facing large companies participating in the gig economy gives rise to interesting and unpredictable risks and exposures for insurers across many coverage lines, such as general liability, auto liability, workers compensation, professional liability, and others.