Regulatory changes on gig economy to impact liability insurance

Proposed regulatory changes for the gig economy could have an impact on businesses’ liability insurance, according to insurance brokerage Gallagher.

Many of the proposed changes – like the scheme set to go before the New South Wales government, which would enforce mandatory levies on gig services operators to contribute to a pool of funds for driver compensations - focus on protecting businesses' financial interests in the event that they face formal lawsuits or any third-party claims.

While well-intentioned, these schemes could potentially “fall short” in meeting gig services providers’ wider insurance coverage needs. As such, the brokerage has advised gig services providers to protect themselves by seeking the right insurance and policy wordings, including management liability, workers' compensation and personal accident cover, health and safety services, and rehabilitation in the workplace. 

Gallagher's Workplace Risk team helps its clients to “build in” risk management processes that apply to the gig economy model by:

• co-designing a work, health, and safety framework that provides a continuous road map for achieving safety management and governance for company officers and the business;
• building a fit-for-purpose incident reporting process (capturing accurate data is crucial); and
• advising on assurance activities such as lodging and reviewing corrective actions, investigations, and aligning these to benchmarks.

The insurance brokerage explained that identifying and reporting accurate data help businesses identify priority risk controls and design targeted training programs around these, taking on a more “mature” risk management approach within their operations at scale.

It advised gig economy businesses to focus on the return to work and rehabilitation space, noting that gig workers currently don't have access to help get them back to work.

“Usually much of the support that enables rehabilitation and a successful return to work comes from the employer, which is not available to gig workers,” it said.

Gallagher's Workplace Risk team helps gig services providers to build early intervention and workplace rehabilitation services providing workers treatment, recovery, and return-to-work pathways that achieve strong outcomes.

“This is primarily achieved through access to occupational therapists, access to self-help tools to guide gig workers through their recovery and return-to-work process, and connections to government support systems to manage their injury-related expenses,” Gallagher said.