The legitimization of ride sharing by the California Public Utilities Commission last year was a massive victory for the share economy and for the likes of Uber, Lyft and Sidecar. As with all share economy models, the question of how much liability the platform provider carries arose and was addressed with a  $1 million insurance policy requirement.

But then came a New Year’s incident in which a mother was walking home with her two young children and was hit by an Uber driver. One child was killed. Another injured. The family sued Uber. Uber claimed since there was no active fare in the vehicle, they weren’t liable.

The latest is that the family has now taken the fight to state government, where AB2293 would require ride sharing companies to provide insurance coverage from the minute the ride sharing app is switched on until it’s switched off, regardless of whether there’s an active fare ongoing.

Ride sharing companies hate the bill because it would amount to higher insurance costs, given that there’s a lot of time that its drivers are just roaming the streets waiting to pick up passengers. Taxi lobbies dislike it because the bill would further legitimize an industry that is cutting into its market.

Ride sharing has seen amazing growth in the last 18 months and all startups are pulling in more VC. The services are loved by consumers and are here to stay. The grey area of whether there’s liability while a driver roams the streets looking for fares is one that needs to be addressed. And given the strong success so far of ride sharing, and the reality that many drivers have effective shifts—times when they’re on the clock and driving for a service—it would seem reasonable that these startups should take some responsibility for their behavior during that time.

No one wants regulation, particularly in an industry that is innovative and finding its feet. But the right thing to do for the industry is to acknowledge that its drivers roaming the streets are putting themselves in a position to pick up a fare and provide revenue for the driver and the ride sharing company. Ride sharing companies bear responsibility for that period.