Limousine Insurance Policy Information
Limousine Insurance. As a luxury transportation service provider, you have a lot riding on your business. Your goal is to make sure your clients feel pampered and arrive at their destinations on time. More importantly, you need to ensure that they are safe and sound throughout their entire journey.
That means you have to keep your limousine in tip-top condition and must ensure that you and/or your drivers are adhering to all safety regulations.
Limousine services offer luxurious chauffer-driven vehicles for hire. Some cater to corporations, transporting business executives to meetings, airports, or hotels. Others offer transportation to the general public for tours or special events such as proms, weddings, graduations, or funerals.
Limousines may carry up to a dozen passengers. Standard furnishings generally include audiovisual equipment, bars, intercom, privacy barrier from the driver, retractable roof, and tinted windows. Some tout more exotic "party" features such as a chandelier, dance floor, disco ball, hot tub, or karaoke machine.
While most chauffeurs are employees of the limousine service, some services use independent contractors.
Whether you own a single vehicle or a fleet, you've invested a lot in your limousines, and your business as a whole. What would you do if something happened to one of your vehicles, such as an accident, theft, or vandalism?
Would you be able to cover the cost of the expenses and recover from the financial devastation? With the proper limousine insurance, you can rest easy knowing that if something does go wrong, you'll be covered.
Limousine insurance protects your limo company from lawsuits with rates as low as $57/mo. Get a fast quote and your certificate of insurance now.
Below are some answers to commonly asked limo service insurance questions:
- How Much Does Limousine Insurance Cost?
- Why Do Limousine Services Need Insurance?
- What Type Of Insurance Do Limousine Services Need?
How Much Does Limousine Insurance Cost?
The average price of a standard $1,000,000/$2,000,000 General Liability Insurance policy for small limousine companies ranges from $57 to $99 per month based on location, services offered, number of vehicles, driver histories, sales and experience.
Why Do Limousine Services Need Insurance?
Though you make every effort to ensure that your drivers are cautious and you take proper measures to secure your limousines, you never know when a mishap will occur. One of your vehicles could be involved in an accident that results in physical injuries and property damages. A vandal could break into your parking lot and damage your vehicle, or burglar could steal one of your limousines.
The costs of these incidents can be astronomical. Can you cover such expenses on your own?
By investing in a limousine insurance policy for your limousine(s), instead of paying the above-mentioned expenses out of your own pocket, your insurance provider would assist with the payments. In other words, insurance can save you from serious monetary losses.
Not only does insurance provide financial security, but you're also legally required to carry it. If you fail to have your limousine(s) properly insured, you could be looking at legal trouble and potentially even lose your vehicle or business.
What Type Of Insurance Do Limousine Services Need?
The specific types of limousine insurance coverage you'll need to invest in vary and depend on a variety of factors, which is why it's important to speak to a reputable agent that specializes in commercial auto insurance.
With that said, however, there are certain types of coverage that all limousine owners will need to carry, including. Let's take a look:
In every state, limousines need to be covered by liability insurance. This type of coverage protects others from losses that may occur when the limousine you own is responsible for an accident. Additionally, this coverage will protect you from expensive legal expenses in the event that your vehicle is responsible for an accident that affected other individuals.
Liability insurance offers two main types of coverage:
- Bodily Injury: If anyone in an at-fault accident with your limo, liability insurance will cover the cost of any necessary medical care, such as ambulance fees, hospital bills, and recurring treatments that may be needed because of that were sustained, such as physical therapy. This part of your liability policy will also cover the cost of any pain and suffering accident victims may suffer, such as the funeral expenses of someone who may sustain a fatal injury.
- Property Damage: A liability insurance policy covers the cost of third-party property damages. If the driver of your limo is involved in an at-fault accident that damages someone else's vehicle, for example, your liability insurance will cover the cost of any necessary repairs to the third parties property.
When you purchase a liability insurance coverage, you'll need to select maximum limits for your policy, as well as a deductible. A reputable insurance agent can help guide you in selecting the appropriate limits and deductible amount.
If your limousine is involved in a collision, this type of coverage will pay for any necessary repairs. This includes collisions with other vehicles, roll overs, and standing objects, such as road signs.
This limousine insurance will cover the cost of any physical damages your vehicle may sustain that your collision insurance won't cover. This includes vandalism, severe weather events, and even damages that your passengers may cause to your vehicle.
Personal Injury Insurance (PIP)
Personal injury limo insurance covers the "first dollar" cost of medical expenses and, in some cases - lost wages. It is often called "Med Pay" or "no-fault" coverage because of the fact that it pays out claims regardless of who is at fault in the accident.
Uninsured And Underinsured Motorist Coverage
- Uninsured Motorist Coverage: Protects your drivers if they are in an accident with an at-fault driver who doesn't carry any liability insurance.
- Underinsured Motorist Coverage: Protects your drivers if they are in an accident with an at-fault driver whose liability limits are too low to cover the damage or medical expenses.
Limo Insurance Requirements
If your limo company hires drivers, you will need to meet state regulations for limousine insurance. Some of these regulations include requirements for certain amounts of bodily injury and property damage liability coverage, employment liability, and workers compensation.
Limo Service Risks & Exposures
Commercial Auto exposures are high. All drivers must have valid licenses appropriate for the types of vehicles being driven. MVRs should be checked regularly and be acceptable. Drivers should be familiar with routes and participate in regular training activities in order to maintain skills needed for driving in congested areas, at night, and during inclement weather. Drivers should be trained on how to respond in case of a medical emergency.
Random testing for alcohol and drug use should be required. Seatbelts and child safety seats should be required when the limousine is in motion. Vehicles must be properly maintained on a scheduled basis with maintenance records kept at a central location. Vehicles damaged in an accident may be difficult to replace, as furnishing them with comparable amenities may be expensive.
Premises liability exposures are limited because the public ordinarily does not have access to the office and garage. Off-premises exposure from contact with passengers usually comes under automobile liability, not general liability. There may be a liquor liability exposure if a bar is provided due to passengers becoming inebriated and injuring themselves and/or others. Drivers should be trained to require proof of age and recognize signs of inebriation.
Personal injury exposures, such as assault and battery or invasion of privacy, may include allegations against the taxi company for negligent hiring and supervision of drivers.
Workers compensation exposures can be high due to the potential for injury from automobile accidents. Drivers, who work alone, often after dark, can be injured by altercations with passengers. Handling passenger luggage and other belongings can result in strains, sprains, and back injuries. Limousines should be properly maintained, equipped with two-way communication devices, shields that separate the driver from passengers, surveillance cameras, a global positioning system (GPS), and safety equipment commensurate with weather conditions.
Driver training should include how to deal with inebriated or uncooperative passengers. Mechanics may be exposed to toxic fumes from refueling and repair operations. These should be done in well-ventilated areas. Exposure to asbestos may result from repairing brakes.
Property exposures are from office and dispatch operations. Ignition sources include electrical wiring, heating, and air conditioning systems. If limousines are stored and maintained on the premises, the fire exposure increases due to flammables including lubricants, oils, degreasers, and solvents.
These must be properly labeled, stored, and separated from one another. If welding is performed, tanks and gases must be handled properly and the operation must be separated from other operations by flash/welding curtains or performed in a separate room or building. Tires do not ignite quickly, but once ignited are difficult to extinguish and leave an oily smoke that permeates the entire area.
Crime exposures are primarily from employee dishonesty. Transportation is usually arranged in advance and paid for by credit cards. Background and criminal history checks should be performed on all employees who handle money. Billing, ordering, and disbursements must be done by different people. Outside audits should be conducted on a regular basis.
Inland marine exposures include accounts receivable if the service offers credit, computers, and valuable papers and records for customers' information, contracts with independent drivers, and driver's logs that may be required to meet federal, state, and municipal regulations.
Computers and satellite tracking systems may be used to track vehicles and maintain contact with drivers. All data must be duplicated and kept off site to be easily reproduced in the event of a loss.
Commercial Insurance And Business Industry Classification
- SIC CODE: 4119 Local Passenger Transportation, Not Elsewhere Classified
- NAICS CODE: 485320 Limousine Service
- Suggested ISO General Liability Code(s): 60035 Automobile Renting or Leasing Companies, 68001 Taxicab Companies
- Suggested Workers Compensation Code(s): 7382 Bus Co. - All Other Employees & Drivers, 8385 Automobile - Rental Co. - Garage Employees
Description for 4119: Local Passenger Transportation, Not Elsewhere Classified
Division E: Transportation, Communications, Electric, Gas, And Sanitary Services | Major Group 41: Local And Suburban Transit And Interurban Highway Passenger Transportation | Industry Group 411: Local And Suburban Passenger Transportation
4119 Local Passenger Transportation, Not Elsewhere Classified: Establishments primarily engaged in furnishing miscellaneous passenger transportation, where such operations are principally within a municipality, contiguous municipalities, or a municipality and its suburban areas.
- Aerial tramways, except amusement and scenic
- Ambulance service, road
- Automobile rental with drivers
- Cable cars, aerial: except amusement and scenic
- Cog railways, except amusement and scenic
- Hearse rental with drivers
- Limousine rental with drivers
- Sight-seeing buses
- Vanpool operation
Limousine Insurance - The Bottom Line
Work with your broker to to ensure that you're properly covered and get quotes for your limousine insurance based on your specific situation, risks, and risk tolerance.
Types Of Small Business Insurance - Requirements & Regulations
Perhaps you have the next great idea for a product or service that you know will appeal to your local area. If you've got a business, you've got risks. Unexpected events and lawsuits can wipe out a business quickly, wasting all the time and money you've invested.
Operating a business is challenging enough without having to worry about suffering a significant financial loss due to unforeseen and unplanned circumstances. Small business insurance can protect your company from some of the more common losses experienced by business owners, such as property damage, business interruption, theft, liability, and employee injury.
Purchasing the appropriate commercial insurance coverage can make the difference between going out of business after a loss or recovering with minimal business interruption and financial impairment to your company's operations.
Insurance is so important to proper business function that both federal governments and state governments require companies to carry certain types. Thus, being properly insured also helps you protect your company by protecting it from government fines and penalties.
Small Business Insurance Information
In the business world, there are many risks faced by company's every day. The best way that business owners can protect themselves from these perils is by carrying the right insurance coverage.
The The National Association of Insurance Commissioners (NAIC) is the U.S. standard-setting and regulatory support organization. Through the NAIC, state insurance regulators establish standards and best practices, conduct peer review, and coordinate their regulatory oversight.
Commercial insurance is particularly important for small business owners, as they stand to lose a lot more. Should a situation arise - a lawsuit, property damage, theft, etc. - small business owners could end up facing serious financial turmoil.
According to the SBA, having the right insurance plan in place can help you avoid major pitfalls. Your business insurance should offer coverage for all of your assets. It should also include liability and casual coverage.
Types Of Small Business Insurance
Choosing the right type of coverage is absolutely vital. You've got plenty of options. Some you'll need. Some you won't. You should know what's available. Once you look over your options you'll need to conduct a thorough risk assessment. As you evaluate each type of insurance, ask yourself:
- What type of business am I running?
- What are common risks associated with this industry?
- Does this type of insurance cover a situation that could feasibly arise during the normal course of doing business?
- Does my state require me to carry this type of insurance?
- Does my lender or do any of my investors require me to carry this type of policy?
A licensed insurance agent or broker in your state can help you determine what kinds of coverages are prudent for your business types. If you find one licensed to sell multiple policies from multiple companies (independent agents) that person can often help you get the best insurance rates, too. Following is some information on some of the most common small business insurance policies:
|Business Insurance Policy Type||What Is Covered?|
|General Liability Insurance||What is covered under commercial general liability insurance? It steps in to pay claims when you lose a lawsuit with an injured customer, employee, or vendor. The injury could be physical, or it could be a financial loss based on advertising practices.|
|Workers Compensation Insurance||What is covered under workers compensation insurance? This type of insurance protects a business and its owner(s) from claims by employees who suffer a work-related injury, illness or disease. Workers comp typically provides the injured employee with benefits to cover medical expenses, a portion of his/her lost wages, rehabilitation costs if applicable, and permanent partial or permanent total disability.|
|Product Liability Insurance||What is covered under product liability insurance? I pays an injured party's settlement or lawsuit claim arising from a defective product. These are usually caused by design defects, manufacturing defects, or a failure to provide adequate warning or instructions as to how to safely use the product.|
|Commercial Property Insurance||What is covered under business property insurance? General liability policies don't cover damages to your business property. That's what commercial property insurance is for. It protects all of the physical parts of your business: your building, your inventory, and your equipment, giving you the funds you need to replace them in the event of a disaster. If you work from home, you might consider a Home Based Business Insurance policy instead.|
|Business Owners Policy (BOP)||What is covered under a business owners policy (BOP)? This is a policy designed for small, low-risk businesses. It simplifies the basic insurance purchase process by combining general liability policies with business income and commercial property insurance.|
|Commercial Auto Insurance||What is covered under business auto insurance? This type of insurance covers automobiles being used for business purposes. This could include a fleet of business-only vehicles or a single company car. In some cases it might cover your car or your employee's car while they're being used for business. These policies have much higher limits, ensuring you can cover your costs if one of these vehicles gets into an accident.|
|Commercial Umbrella Policies||What is covered under commercial umbrella insurance? This type of policy is a sort of "gap" insurance. It covers your liability in the event that a court verdict or settlement exceeds your general liability policy limits.|
|Liquor Liability Insurance||What is covered under liquor liability insurance? It covers bodily injury or property damage caused by an intoxicated person who was served liquor by the policy holder.|
|Professional Liability (Errors & Omissions)||What is covered under professional liability insurance? This type of business insurance is also known as malpractice oe E&O. It covers the damages that can arise from major mistakes, especially in high-stakes professions where mistakes can be devastating.|
|Surety Bond||What is covered under surety bonds? Bonding is a contract where one party, the SURETY (who assures the obligee that the principal can perform the task), guarantees the performance of certain obligations of a second party, the PRINCIPAL (the contractor or business who will perform the contractual obligation), to a third party, the OBLIGEE (the project owner who is the recipient of an obligation).|
Who Needs General Liability Insurance? - Virtually every business. A single lawsuit or settlement could bankrupt your business five times over. You might also need this policy to win business. Many companies and government agencies won't do business with your company until you can produce proof that you've obtained one of these policies.
Business Insurance Required by Law
If you have any employees most states will require you to carry worker's compensation and unemployment insurance. Some states require you to insure yourself even if you are the only employee working in the business.
Your insurance agent can help you check applicable state laws so you can bring your business into compliance.
Other Types Of Small Business Insurance
There are dozens of other, more specialized forms of small business insurance capable of covering specific problems and risks. These forms of insurance include:
- Business Interruption Insurance
- Commercial Flood Insurance
- Contractor's Insurance
- Cyber Liability
- Data Breach
- Directors and Officers
- Employment Practices Liability
- Environmental or Pollution Liability
- Management Liability
- Sexual Misconduct Liability
Whether you need any or all of these policies will depend on the results of your risk assessment. For example, you probably don't need an environmental or pollution policy if you're running an IT company out of a leased office, but you would need data breach and cyber liability policies to fully protect your business.
Also learn about small business insurance requirements for general liability, business property, commercial auto & workers compensation including small business commercial insurance costs. Call us (855) 767-7828.
Additional Resources For Commercial Auto Insurance
Learn about small business commercial auto insurance which includes liability and physical damage protection for vehicles that are used for business purposes.
- Insurance Automotive Terms Glossary
- Amazon Delivery Drivers
- Ambulance Services
- Big Rig Truck
- Bobtail Non-Trucking Liability
- Charter And Tour Bus
- Commercial Auto
- Commercial Auto Liability
- Commercial Electric Vehicle Insurance
- Commercial Van
- DoorDash, GrubHub & Uber Eats Drivers
- Dump Truck
- Food Truck
- Freight Forwarder
- Household Goods Moving
- Motor Truck Cargo
- Non-Owned And Hired Auto Liability
- Owner Operator
- Pizza Delivery
- Tow Truck
- What Are Commercial Auto Insurance Endorsements?
- What Does Commercial Auto Physical Damage Insurance Cover?
The person injured in an vehicle accident may be a child, a wage earning single parent, a brain surgeon, or even a homeless person. The costs of the accident may be relatively small or run into the millions of dollars, depending on the victim and his or her injuries. Do you have the assets to handle such costs?
Trucking operations in this chapter are among the most heavily regulated in the country. All are subject to multiple types of regulation including municipal, state and federal. The regulations are necessary because potential for severe property damage and/or bodily injury is extremely high.
All carry cargo that if not handled appropriately could have serious consequences to the cargo owner and/or the public at large. Those that carry people must prove that they keep their equipment in good condition and that employees operate in a safe, sober manner.
The insurance company pays amounts an insured is legally obligated to pay as damages because of bodily injury or property damage and certain types of pollution events covered by this insurance caused by an accident and resulting from ownership, maintenance or use of covered vehicles.
The obligation to pay is triggered only by accidental occurrences involving vehicles covered under the Business Auto Coverage Form. An eligible pollution event is covered only if it is connected to a covered bodily injury or property damage loss.
It is important that you have the proper Limit of Insurance to protect your operations. This limit is the most the insurance company pays for the total of all damages, including any covered pollution cost or expense resulting from any one covered accident, is the Covered Auto liability limit of insurance on the declarations.
This limit applies regardless of the number of insureds, autos covered, vehicles involved in an accident, premium paid, or number of claims made.
Minimum recommended small business insurance coverage: Building, Business Personal Property, Business Income and Extra Expense, Accounts Receivables, Computers, Motor Truck Cargo, Valuable Papers and Records, Employee Dishonesty, Money and Securities, General Liability, Employee Benefits, Umbrella, Motor Carriers Liability and Physical Damage, Hired and Non-owned Auto & Workers Compensation.
Other commercial insurance policies to consider: Earthquake, Flood, Mobile Equipment, Signs, Warehouse Operators' Legal Liability, Cyber Liability, Employment-related Practices, Environmental Impairment, Underground Storage Tank, Stop Gap Liability and International Coverages.