(Bloomberg) — Uber Technologies Inc. and other ride-sharingcompanies that let people arrange transportation in private carswould be required to boost insurance for drivers under legislationsent to California Governor Jerry Brown.

While the 76-year-old Democrat hasn't said whether he'll signthe bill, his administration helped draft the compromise measurethat was approved late yesterday by lawmakers.

Under the proposal, ride-share companies operating in the mostpopulous U.S. state would have to provide at least $200,000 ofinsurance when a driver is on duty and $1 million of coverage whenthe driver has picked up a customer.

“This just shows that innovation does not need to trump consumerprotection,” said state Assemblywoman Susan Bonilla, a Democratfrom Concord who wrote the bill. “In California, both canprosper.”

Lawmakers and regulators in states from Illinois to Coloradohave been working to define when San Francisco-based startup Uberand competitors such as Lyft Inc. and Side.Cr LLC are liable foraccidents. Uber is seeking to attract drivers and win confidencefrom potential passengers as it expands. The company was valued at$17 billion in June after it raised $1.2 billion in a financinground.

Uber and Lyft had opposed the legislation when it was introducedbecause it required $500,000 worth of coverage when a driver islooking for business. They dropped their opposition after thecoverage minimum was reduced.

Bonilla introduced the bill in February, about two months aftera driver who received requests through Uber crashed into a familyon a San Francisco crosswalk, killing a 6-year-old girl. Uber saidthe company shouldn't be held liable for irresponsible driving by aman it described as “independent.” The family sued Uber inJanuary.

With assistance from Kelly Gilblom in New York.