Getting The Right Limousine Insurance to Protect your Business
Limousine service is a form of pre-arranged luxury transportation, perhaps for company executives to move around, party guests to tour the city, or families, friends, celebrities, and groups to attend events. Generally, your clients expect reliable service from you, which not only means getting your clients where they need to be on time, but also quickly fixing any problems that arise on the road. This requires proper planning and organization to maximize road safety and mitigate any risks by getting the right limo insurance cover.
The limousine business generally involves chauffeured vehicles for hire, which means that you need commercial auto insurance, as well as cover for your passengers and risk for a liability claim. Generally, your limousine coverage may include:
- Personal injury limo insurance – to cover the cost of injuries and accidents involving your vehicles, such as medical bills, lost wages, and rehabilitation
- uninsured/underinsured coverage – mandatory in some states to provide additional cover in the event that your limo collides with a vehicle that has inadequate cover to pay your total costs
- Employment practices liability insurance – to protect your business in the event that your chauffeurs are accused of discrimination or sexual harassment, or following a claim for wrongful termination
Livery Insurance Requirements
Livery insurance requirements vary from state to state, depending on the type of service offered and vehicle capacity. If you use your own vehicles to transport people for a fee, then you need to get sufficient protection to ensure the well being of your passengers.
On the other hand, if your business contracts a different entity to provide transportation – perhaps as third-party transportation managers – then they would likely impose their own livery insurance requirements. This arrangement requires other parties to be indicated as “additional insured” on your limousine insurance policy.
Consider working with an insurance broker to help you get the insurance cover you need at the best rates. They can also help to shop for discounts you qualify for based on good driving, zero-claims, insuring multiple vehicles, or for new business and annual renewal.