Livery Insurance

Transportation is one industry that will never go out of business. It constantly evolves, from taxis to limousines to the newly popular rideshare services. People are always going to need to get from one place to another. It’s just how the world works. But with this hot commodity come the chances for many car accidents.

Transportation vehicles spend so much time on the road that they face many daily threats. The best way to address these risks is to purchase livery insurance.

Livery insurance provides coverage for your transportation business. It protects drivers, customers, and vehicles. It is vital insurance you never want to send your employees or yourself on the road without.

What is Livery Insurance?

Livery insurance, also commonly known as for-hire livery insurance, is a type of commercial auto insurance designed to provide coverage for companies that make their income by transporting people from one place to another.

Livery insurance can encompass scheduled transportation (e.g., limousines) and public-hire vehicles (e.g., taxis). Livery Insurance covers your business, drivers, and any clients in the vehicle at the time of an accident.

What is a Livery Vehicle?

A livery vehicle is any vehicle that a business uses to transport people. Anything can be declared a livery vehicle so long as it is used to generate income by providing rides.

Some standard livery vehicles include:

• Taxi
• Limos
• Buses (sometimes)
• Personal cars (sedans and SUVs)

Do You Need Livery Insurance Coverage?

If you or your business transports people in any capacity, you need livery insurance coverage. Not only is it law in nearly every state that drivers need to carry insurance, but it also protects your business assets.

Failure to carry livery insurance can result in paying for any damage and injuries out of pocket. One accident is enough to dent your business’s finances severely. Insurance can also help with legal fees should you be sued following the collision.

Letting your vehicles or drivers hit the road without the proper livery insurance coverage is irresponsible and not a recommended business practice.

Types of Livery Insurance

Livery insurance encompasses several different types of coverage. It is an umbrella term with various vehicles listed under it.

There are four main types of vehicles a livery policy covers.

Ensure you check with your state insurance regulations before purchasing a livery insurance policy to ensure you stay within the law. Please carry livery insurance in any capacity to protect your for-hire business.

Taxi Insurance

If you own a taxi business, you need taxi insurance. This insurance covers drivers, vehicles, and any passengers they are transporting. States have rules and regulations regarding taxi services and the insurance they need. If establishing one, do your research first before purchasing an insurance policy.

Driving a cab is risky, meaning your insurance coverage must be adequate. The proper taxi insurance policy will include coverage for any damage to your vehicle and personal injury to you and your customer(s).

Limousine Insurance

Another sub-genre of livery coverage includes black car and limousine insurance. This type of insurance coverage is designed to protect limos and any other expensive vehicles a business uses to transport people.

This type of livery insurance typically differs from taxi insurance since limos are an arranged service. In contrast, taxis can be hailed off the street. Limousine insurance must cover both the costs to repair the vehicles and any personal injury expenses.

Rideshare Insurance

Rideshare services are on the rise in popularity. If you are hopping on the trend, you will need a livery insurance policy to ensure you are adequately protected.

Any drivers who use their personal vehicles to drive for companies such as Uber or Lyft need special coverage beyond their personal auto insurance.

Livery insurance is vital as it will help to give you the best rideshare insurance coverage as a business operator. Even if you work for another business, you still use your vehicle and any business insurance assistance.

Non-emergency Medical Transportation (NEMT) Insurance

A non-emergency medical transportation (NEMT) business is a transportation company that helps elderly and disabled patients get to appointments or from hospital to hospital.

This is reserved for people who need help to use public transportation or personal vehicles to transport themselves.

States typically regulate Livery Insurance requirements for these types of vehicles. Mandates vary based on location. This type of business also risks injury to your clients due to their age or disabilities.

Harm can happen to them during transport or while taking patients on and off the vehicle. Livery Insurance coverage needs to be expanded to cover such instances.

Charter Bus or Motor Coach Insurance

Transporting people via a charter bus, motor coach, or even a tour bus can be considered a for-hire livery service, and you will need this specialized type of commercial livery insurance.

You need to ensure your vehicles, passengers, and drivers are covered by insurance in the event of an accident.

Remember that your livery insurance rates can be higher due to the size of your vehicles and how many people you are transporting. Check with local regulations regarding bus services and insurance before purchasing a livery insurance policy.

Coverages Available For Livery Drivers

Coverage provided by livery insurance is similar to what you would find from a personal car insurance policy. Where it can differ is the coverage limits and a focus on protecting clients in the car, not just drivers.

Livery insurance offers the following coverage:

Liability Insurance

Liability insurance covers bodily injuries and property damage you cause in a collision. If you are at fault, it pays for the other party’s repairs and medical expenses. It can also help with legal fees should the other driver sue you.

Collision Insurance

Collision insurance coverage pays for damage to your vehicle following an accident, no matter who was at fault.

Comprehensive Insurance

Comprehensive insurance covers damage to your vehicle after a non-collision-related incident. The most common examples are vandalism, theft, and weather damage. Comprehensive can even cover damage to your vehicle that is done by your passenger(s).

Uninsured/Underinsured Motorist Coverage

Despite requiring insurance in nearly every state, many still drive without it. Suppose you have an accident with a driver lacking liability insurance. In that case, uninsured/underinsured motorist coverage can help pay for your auto repairs and medical expenses.

How Much Does Livery Insurance Coverage Cost?

A livery insurance policy can be costly for your business. Cities usually regulate livery insurance coverage, so the cost of a policy can vary based on where you live.

You can expect to pay somewhere from $5,000 to $10,000 annually for livery insurance coverage.

The quote you receive depends on several factors. Like any other kind of insurance, livery coverage premiums are determined by information gathered about you, your vehicles, your employees, and your business.

The cost of livery insurance coverage depends on the following:

• Location - Some states have higher insurance rates than others. Something as simple as your zip code will significantly impact your insurance premiums. You can expect to pay more for coverage if you also operate in multiple states.
• Driving record - Both you and your driver(s) driving records will come into question when establishing insurance rates. If you or anyone with your business has a less-than-favorable driving history, expect higher premiums.
• Usage - The industry you are in and what you subsequently use your vehicle(s) for will impact your insurance premiums. Non-Emergency Medical Vehicle Insurance is going to cost more compared to someone who is in the limousine business. Making long trips can also affect your insurance rates.
• Type of vehicles - Regular commercial sedans, like those used by many taxi companies, will be less expensive to insure than something extravagant like a stretch limo. The number of vehicles your business uses will also affect your rates. You will pay more for insurance if you have a whole fleet of vehicles needing coverage.
• Coverage limits - How much insurance coverage you need will impact your rates. The more insurance you need, the higher your premiums will be. Your insurance deductible will also affect how much you pay annually for coverage. The lower you set your deductible, the more you will be paying.

Livery Insurance vs. Personal Auto Insurance

Your personal car insurance policy may cover the expenses following an accident in a vehicle you use for transporting people.

However, you can get into trouble if your insurance provider finds out you have used your vehicle as a taxi or rideshare service and have yet to purchase livery coverage.

If you lack the proper commercial insurance, they may consider your insurance claim fraud and deny paying for auto repairs or medical expenses, even if your insurance policy limits are high enough to cover everything.

You should be safe and purchase a commercial livery insurance policy to protect your business ventures.

Get a Livery Insurance Quote Today

Are you looking for a livery insurance policy? Call us today to get a free livery insurance quote. Make sure you let us know your zip code, details of your business, and information on your vehicle(s). By providing us with all this, we can better understand the coverage you need.

You can get a quote at one of our many locations or online via our website and mobile app. You can also start your quote over the phone. Get commercial coverage today and drive worry-free tomorrow.