On-demand insurance for the sharing economy

By October 18, 2016

The New York-based startup Slice has just announced the launch of its on-demand insurance service perfectly adapted to the needs of independent workers in the sharing economy.

Metromile, Sure., Trov… Many different startups are now offering on-demand insurance. Slice, a startup created one year ago in New York, has also entered the growing market of on-demand insurance but chose to address an original target: the independent workers created by the sharing economy.

Traditional insurance policies, which are often expensive and meant for a long-term coverage, no longer fit the needs of people working in the collaborative economy. Indeed, Uber drivers or AirBnB hosts only need coverage when they are actually working, often for a very short-term, for instance when they are driving or renting their home for a few days.

Slice wants to meet these new needs. After raising almost four million dollars last March, the startup has just released its first on-demand insurance service for hosts using platforms like AirBnB or Homeaway. In just a few clics via the app, hosts can get professional insurance to cover the time period they are renting their home, in case any damage caused by their guests should occur. This service will cost them from four to seven dollars a night, with a coverage limit of two million dollars.

Slice has been granted the insurance license in several U.S. states and will further deploy its on-demand service in the country, before launching new services to provide tailor-made insurance for rideshare platforms like Uber or Lyft. One could venture to say that by targeting a market as important as the sharing economy in the United States, which accounts for 45 million workers this year, the future of the New York-based startup looks bright.

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