We are continuing our discussion of transportation network company regulations in California. The state was the first to adopt regulations specifically for these ridesharing operations, and, it seems, those regulations are a work in progress.
The tricky issue is liability. The drivers use their own cars, and, initially, TNCs had not been buying commercial liability insurance to cover any accidents involving drivers carrying TNC customers. As we said in our Dec. 15 post, the driver's insurance wouldn't cover the accident either (no coverage for commercial enterprise). The state regulations required TNCs to purchase insurance.