Gig economy insurance company Zego creates new policy for cab drivers forced off the road by Alpha’s bankruptcy
Following the bankruptcy of unrated Alpha, gig economy insurance provider Zego has come up with a new 30 day insurance policy for private hire drivers.
Alpha’s collapse led to vast queues outside broker offices in London last week, as cab drivers scrambled to purchase new cover.
Many had paid for their annual premiums up front and were worried about the cost of buying insurance again, especially after losing business while forced off the road.
It is estimated that up to 700 taxi drivers and 10,000 minicab drivers have been affected.
Zego’s 30 day policy was written in under 48 hours, as a response to the crisis.
It offers drivers the option to get back on the road quickly, without having to make an annual commitment.
Harry Franks, CEO & co-founder of Zego, said: “Zego has always been about enabling the gig-economy to continue, legally and safely, to the benefit of those drivers involved. With this in mind, we simply could not sit by and watch whilst drivers were left without cover and unable to do their jobs.
“The new monthly policy sits in-between our existing annual, and flex (hourly) private hire products, meaning we can now cover the full range of gig-economy drivers’ insurance needs. Annual for full-time, monthly for seasonal, and hourly for part-time drivers. All accessible and managed from within the Zego mobile app.
“The fact that we have been able to launch a new product in just 48 hours is testament to the team’s hard work, our agile tech-tech driven setup and strong relationship with our capacity providers.”
Last week, it was revealed that Carrot customers with Alpha had been seamlessly transferred to Aviva.
The UK’s Financial Services Compensation Fund (FSCS) has now confirmed that it will protect ‘some’ policyholders in the UK.