Daniel Learns About Insurance: The Birds!

Is anywhere safe when the Birds attack?!?!

Universal Pictures

In the 1963 classic Hitchcock movie The Birds, a wealthy California socialite gets caught up in an attack from hundreds of birds and must try to survive their vicious and out-of-theblue attacks. Cut to May 2018, when out-of-the-blue, electric scooters from California began popping up on the streets of Nashville.

These scooters, ridiculously called, "shared urban mobility devices," were placed on city sidewalks and available for rent through mobile apps. Within days, they were zipping their way through traffic, cutting off cars and passing pedal taverns with ease. But just a week into their arrival, two young ladies from the Knoxville area were scootering along when a car struck them, knocking them from their Birds and landing them both in the hospital. The driver fled the scene, and a bright spotlight was immediately cast on electric scooters.

After some contentious discussion between Bird and Metro

Nashville, many of the scooters were confiscated. Others were moved down interstate 40 to Memphis. Memphis took a more proactive approach, laying down some ground rules and regulations for the scooter launch. The scooters became a big hit in Memphis, and one ER doctor claims that the result has been an increase in ER visits. Methodist University Hospital Medical Director in Emergency Department Dr. Jeff Harris told WMC5 News that, "I've seen several injuries from the scooters. There's all ranges. A lot [of the injuries] are just cuts and bruises from falling. Most significantly head injuries from people not wearing a helmet."1

A Return to Nashville Streets

In late August, Nashville's Metro Council voted 29-1 to allow the electric scooters to return to the city's streets. The only caveat being that new regulations would be in place for any company wanting to deploy "electronic or motorized scooters and bicycles." To that end, a permitting process has now been established for these companies.

The regulations also include several aimed at safety, including strongly encouraging helmet use for the scooters, and

guidelines about yielding to pedestrians, and compliance with rules of the road. If a scooter or bike is found parked on a public right-of-way such as a sidewalk, then the company can be fined $25 with the option of passing that fine to the user. There are additional mandates for on-board GPS on vehicles, regular inspection and maintenance and education of users on how to use the vehicles. 2

Once those rules were in place, Birds returned the streets and a competing business – Lime – also brought their scooters to town. Now there are scooters strewn across the streets and sidewalks of the downtown neighborhoods.

Is There Coverage for Riders?

Across the country, electric scooters have been both popular and dangerous. Crashes and injuries have followed in the cities where Birds have landed. There are even personal injury attorneys already running ads for legal action. So, are these riders covered? Is Bird creating liability for its riders?

The Bird rental agreement includes a waiver of liability, and states that, "Your automotive insurance policies may not provide coverage for accidents involving or damage to this vehicle. To determine if coverage is provided, you should contact your automotive insurance company or agent." So, are your insureds who ride electric scooters covered for physical damage and personal liability?

Recently, the Big "I" Virtual University addressed this topic. Their consensus? "Personal Liability from an HO or Renters policy is unlikely to cover this use because they'd be excluded as 'motor vehicles.' Some motorcycle policies covering an owned motorcycle or scooter might extend Liability to nonowned scooters, but even then the insurer may argue that shared vehicles might be available for the insured's regular use. Some Personal Umbrellas might not require underlying coverage, generally when a vehicle isn't included in the definition of 'recreational vehicle,' and could drop down to provide 3rd party Liability. The damage to the [scooter] exposure might be under $1,000 and manageable without insurance." 3

Tell your insureds to stay safe, and watch out for the Birds!

1 - per "Bird scooter crashes causing an uptick in ER visits" via http://www. wmcactionnews5.com/story/38824169/bird-scooter-crashes-causing-anuptick-in-er-visits/ 2 - per "Bird scooters coming back to Nashville as Metro Council finalizes new rules" via https://www.tennessean.com/story/news/2018/08/21/bird-scooters-coming-back-nashville-metro-council-finalizes-new-rules/1057845002/ 3 - per Big "I" Virtual University VUpoint Newsletter Vol. 19, No. 19 - Issue #456 - Friday, September 14, 2018 at https://www.independentagent.com/ Education/VU/Pages/VU-point/Briefs/AAE.aspx