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:
- What Is Limousine Insurance?
- How Much Does Limousine Insurance Cost?
- Why Do Limousine Services Need Insurance?
- What Type Of Insurance Do Limousine Services Need?
- What Does Limousine Services Insurance Cover & Pay For?
What Is Limousine Insurance?
Limousine insurance is a specialized form of insurance designed to protect limousine operators and their vehicles from potential financial losses. This type of insurance covers a wide range of risks that are specific to the limousine industry, including liability, collision, and comprehensive coverage.
Liability insurance is one of the most important types of coverage included in limousine insurance. This coverage protects the limousine operator from financial losses if they are found to be at fault for an accident that causes injury or damage to property. This coverage also includes protection for passengers in the event of an accident.
Collision coverage is another important type of coverage included in limousine insurance. This coverage provides protection for the limousine and its passengers in the event of a collision with another vehicle or object. This coverage also includes protection for any damage caused by a driver who is under the influence of drugs or alcohol.
Comprehensive coverage is also an important type of coverage included in limousine insurance. This coverage provides protection for the limousine and its passengers in the event of damage caused by natural disasters, theft, or vandalism. This coverage also includes protection for any damage caused by road debris or other non-collision incidents.
In addition to these types of coverage, limousine insurance can also include additional coverage options such as medical payments coverage, rental car coverage, and roadside assistance coverage.
Overall, limousine insurance is an essential form of protection for limousine operators and their vehicles. It provides coverage for a wide range of risks that are specific to the limousine industry, and helps to ensure that limousine operators are protected from financial losses in the event of an accident or other incident.
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?

Limousine drivers need insurance for a variety of reasons. Firstly, it is a legal requirement for any business operating vehicles to have insurance in place. This ensures that the company and its drivers are protected in the event of an accident, and that any damages or injuries caused by the vehicle are covered.
Additionally, limo drivers often transport high-profile and wealthy clients, and any accidents or incidents involving these clients can lead to significant financial losses for the company. Limousine insurance can help mitigate these losses and protect the business from financial ruin.
Furthermore, limo drivers frequently deal with high-risk situations such as busy city traffic and unfamiliar routes, which increases the likelihood of accidents. Insurance helps protect the driver and company in these situations, ensuring that they are not held financially responsible for any damages or injuries caused by the vehicle.
In summary, limousine drivers need insurance to protect themselves, their clients, and the company they work for in the event of accidents or incidents while on the road. It ensures that everyone is protected financially, and that any damages or injuries are covered.
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:
Liability Insurance
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.
Collision Insurance
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.
Comprehensive Insurance
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.
What Does Limousine Services Insurance Cover & Pay For?

Limousine services can face lawsuits for a variety of reasons, including accidents, injuries, property damage, and contract disputes. Here are some examples of the reasons why limousine services may be sued and how insurance can protect them:
Accidents: If a limousine driver is involved in an accident that results in injuries or property damage, the limousine service may be held liable. In this case, commercial auto insurance can help cover the cost of damages or injuries sustained by third parties. For instance, if a limousine driver is found to be at fault for an accident that injures passengers in the limousine and another vehicle, liability insurance can help cover medical expenses, property damage, and legal fees associated with the lawsuit.
Personal injury claims: If a passenger is injured while riding in a limousine, they may sue the limousine service for negligence. In this case, the limousine service may be liable for medical expenses, lost wages, and pain and suffering. General liability insurance can help cover the cost of these claims.
Contract disputes: Limousine services may also be sued for breach of contract. For instance, if a limousine service fails to provide a vehicle at the agreed-upon time or fails to provide the level of service promised in the contract, the customer may sue for breach of contract. In this case, professional liability insurance can help cover legal fees associated with the lawsuit.
Discrimination claims: Limousine services may also be sued for discrimination. For example, if a limousine service refuses to provide service to a passenger because of their race, religion, or gender, the passenger may sue for discrimination. Employment practices liability insurance can help cover legal fees and damages associated with discrimination claims.
In summary, insurance can protect limousine services from lawsuits by covering the cost of damages or injuries sustained by third parties, covering the cost of personal injury claims, helping cover legal fees associated with contract disputes, and covering legal fees and damages associated with discrimination claims. It's essential for limousine services to have the appropriate insurance coverage to protect themselves and their customers in case of unexpected incidents.
Commercial Insurance And Business Industry Classification
- SIC CODE: 4119 Local Passenger Transportation, Not Elsewhere Classified
- NAICS CODE: 485320 Limousine Service
- 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.
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
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- Limousine
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- Non-Owned And Hired Auto Liability
- Owner Operator
- Pizza Delivery
- Repossession
- Taxi
- Tow Truck
- Truck
- Specialty Automobiles, Trucks And Recreational Vehicles
- Specialty Physical Damage

Commercial auto insurance is a type of insurance that provides coverage for vehicles used for business purposes. This includes vehicles such as delivery trucks, company cars, and other vehicles that are used to transport goods or employees.
Commercial auto insurance is necessary for businesses that rely on their vehicles to conduct their operations. It helps to protect the business from financial losses due to accidents, theft, or other unexpected events. It also helps to protect the business from potential lawsuits that may arise from accidents involving their vehicles.
There are several types of coverage options available under business auto insurance policies. These include:
- Liability coverage, which covers damages or injuries that you or your employees cause to others while operating a business vehicle.
- Physical damage coverage, which covers damages to your own vehicle, is also available.
- Other coverage options may include medical payments, uninsured or underinsured motorist coverage, and rental reimbursement.
It is important for businesses to carefully consider their commercial auto insurance needs and to choose a policy that offers the right level of coverage. This can help to ensure that the business is protected in the event of an accident or other unexpected event.
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.