If states serve as laboratories for future federal policies, South Carolina one that is blazing the trail for workers’ comp coverage for the gig economy. Currently, Uber and Lyft ride-sharing services don’t provide mandatory workers’ compensation for drivers injured on the job.
Uber in South Carolina-one of eight states–will start offering workers’ comp type insurance in the form of a state personal injury policy. It will be optional for drivers who will pay -3.75 cents/mile for up to $1 million of coverage. Passengers will pick up the tab as Uber will jack up fees in the state.
The gig economy is transforming the temporary staffing landscape, but one of the benefits to employers and consumers is the absence of burdensome regulations, including workers’ comp.
It remains to be seen whether this will catch on in all markets and possibly lead to more stringent workers’ comp requirements. If that becomes the case, then LeastStaff has many workers’ comp and general insurance solutions to keep your insurance rates as low as possible.