To address concerns about potential accidents related to on-demand transportation services, Lyft announced that it will add more coverage to its existing insurance for drivers, according to TechCrunch.

Lyft explained in a statement: "While we do expect personal carriers to cover the time period prior to carrying a passenger, in order to erase any uncertainty, Lyft will now provide additional protection. This new protection will provide backstop coverage to drivers when they are in match mode and are not providing rides. We will be rolling this out state-by-state in the days to come."

Before, Lyft's insurance covered only the time when a passenger was riding a car. However, for the times that the driver had agreed to accept rides but the passenger has not yet been picked up, the liability here becomes unclear, the report stated.

The coverage issue was highlighted after an off-duty driver for Uber became involved in a fatal accident recently, the report added.

The US-based ride-sharing service included the additional coverage in a bid to comply with regulations and insurance carriers, TechCrunch reported.