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'Gig Economy' Guarantees

By Nicole M. Zayac

“Gig economy” businesses provide a platform that enables those desiring services (customers) to connect with those willing to provide these services (contractors). The company providing the means of connection generally has little direct involvement in the services on offer, operating instead as a software company or network facilitator. Much has been written lately about this recent business concept that appears to be changing the way people work, and the nature of traditional jobs. Some of these companies have already become familiar household names ' Uber, Lyft, Airbnb and TaskRabbit ' and new companies that embrace this business model continue to emerge.

Because the gig economy business model is new and rapidly evolving, the legal and regulatory structures for customer and contractor protection remain in their nascent stages. Some issues, such as the insurance requirements applicable to transportation network companies (e.g., Uber or Lyft), and the development of insurance products to address their needs, are already being addressed by regulators and legislatures.(Similarly, workers' compensation issues relating to the employee-contractor distinction, which are outside the scope of this article, are being addressed through regulatory and court processes.) Others ' particularly the tension between the companies' disclaimers of liability and their desire to provide some protections to their customers ' have not yet come to the forefront of public attention.

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