When we think of livery services, typically what comes to mind are specialty ride services, like a car service that transports you to the airport, or limos to rent for weddings, proms, and other special occasions.
There are many different types of livery services, which include not only car services to the airport or limousines, but also specialty services such as non-emergency medical transportation and rideshare services.
Whichever type of livery service a business offers, insurance is a requirement. Here’s what you need to know about general liability insurance for livery services.
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What types of livery services need general liability insurance?
Whether your business dispatches rides to the airport or offers limousine rentals for special occasions, any type of livery service needs general liability insurance.
General liability insurance is a basic insurance that most small businesses should carry. This coverage protects your company from third-party claims, such as a customer being injured while getting into one of your livery vehicles or property damage caused by one of your drivers.
What does general liability insurance include?
As noted above, general liability insurance is to protect your business from third-party claims. For a livery service, a third party is likely to be customers, but it could also be any vendors that you work with as part of your day-to-day delivery of services.
In this situation, the “first party” is you, the insured; the “second party” is your insurance company; and the “third party” is anyone else you interact with in the course of doing business.
If a customer is injured getting into or out of a livery vehicle (seriously enough to need medical attention), general liability insurance is designed to cover those costs. If a vendor visiting your dispatch office slips and falls on ice in the parking lot, general liability will cover that claim.
However, if an employee slips on that same ice in the parking lot, general liability does not cover that claim. Your worker’s compensation policy covers employees injured on the job, or if the employee is injured while driving, your commercial vehicle insurance policy may be the right coverage to settle the claim.
In addition to physical injuries, general liability insurance also covers third-party property damage. If one of your drivers hits a customer’s fencing while backing out of a narrow driveway, general liability should cover the repairs.
General liability also protects your business from claims of libel and slander. If your livery service is ever accused of damaging the reputation of a customer or another business, general liability will help to cover associated legal costs and claims.
General liability insurance is an essential basic coverage for a small business.
What other types of insurance should livery services have?
General liability insurance is important, basic coverage for a livery service to carry. However, there are a number of other types of coverage that are equally important for you to have.
Commercial auto insurance – This is vehicle insurance for commercial fleets.
Collision and comprehensive coverage for fleet vehicles – Think of this as the commercial version of standard collision and comprehensive insurance coverage. It is protection for your fleet vehicles if they are damaged, either in a traffic accident (collision) or as a result of a weather event or fire (comprehensive). If your fleet vehicles are stored outside and experience storm damage, comprehensive coverage is designed to cover the claim.
Worker’s compensation – As we’ve covered above, your drivers and other employees of the business are not covered by your general liability policy if injured on the job. Worker’s compensation insurance is required in most states to cover the costs of on-the-job injuries and rehabilitation.
Non-owned auto liability – Depending on the type of livery service you own and operate, you may need non-owned auto liability coverage if your drivers are using vehicles they own for work. Even if your drivers have insurance coverage on their personal vehicles, you will need additional coverage such as non-owned auto liability. This is because individual car insurance policies specifically exclude covering damage from accidents incurred if the vehicle was being used for commercial purposes.
For example, if your livery service provides rides to seniors for medical appointments using a network of established drivers who use their own cars, you will need non-owned auto liability coverage. If one of your drivers is involved in an accident while transporting a customer, their auto insurance coverage will not cover the claim.
Specialty coverages – There are many different types of livery services to meet different business needs, and with those specializations come differing risks. Whether your business is a taxi service, “black car” driving service, limos, non-emergency medical, or a rideshare company, talk to your agent about the types of additional coverage you may need to protect your business.
Do livery services need cyber insurance?
Cybercrime is now an ever-present threat to businesses of all sizes and types. If your organization uses technology in virtually any way, you could be vulnerable.
If your livery service uses technology to place reservations, order cars, or for payment processing, you most likely need the protection provided by a cyber insurance policy.
How much does general liability insurance for livery services cost?
All forms of insurance coverage are designed to protect businesses from losses, and premiums are based on risks. If you want to learn more about general liability insurance for livery services, or if you’d like to get a quote on this type of policy or other insurance coverages that you may need, contact the experts at Rate Insurance. With access to a wide range of commercial insurers, they can answer questions about which policies are best suited to protect your business.
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All information provided in this publication is for informational and educational purposes only, and in no way is any of the content contained herein to be construed as financial, investment, or legal advice or instruction. Rate Insurance does not guarantee the quality, accuracy, completeness or timelines of the information in this publication. While efforts are made to verify the information provided, the information should not be assumed to be error free. Some information in the publication may have been provided by third parties and has not necessarily been verified by Rate Insurance. Rate Insurance, its affiliates and subsidiaries do not assume any liability for the information contained herein, be it direct, indirect, consequential, special, or exemplary, or other damages whatsoever and howsoever caused, arising out of or in connection with the use of this publication or in reliance on the information, including any personal or pecuniary loss, whether the action is in contract, tort (including negligence) or other tortious action.
