Do you plan to start a limousine or executive car service? While limos are perennial money makers during the wedding and prom season, executive (or black) cars are also important throughout the business world. And with more people opting to skip owning their own car, short-term ride services are even more popular.
However, as with any business, a limousine company must have proper insurance coverage in order to protect its employees, its clients, and the business itself. One of the most important insurance coverage elements for a limo service is limousine insurance. How does limo insurance differ from other insurance options? And what should you look for? Here are a few answers.
What Is Limousine Insurance?
Limousine insurance is a type of commercial auto insurance designed specifically for the for-hire vehicle industry. Limousines and other hired vehicles generally cannot be properly covered by standard auto insurance because the business activities aren’t covered. If you have a vehicle (often a vintage vehicle) used for both personal and business activities, you may want to consult with your agent about coverage.
Specialty insurance services targeted for a particular industry often bundle several different necessary coverage components into one product to make things simpler and less expensive. In the case of limo insurance, this includes elements of traditional auto insurance — such as covering accidents — as well as business liability insurance appropriate for carrying passengers.
What Can Limousine Insurance Cover?
Typically, limo insurance coverage includes an upgraded version of the basic auto insurance elements. This begins with collision and bodily injury coverage in case your car is involved in an accident for which your company is at fault. It will also include uninsured motorist insurance in case the at-fault party is insufficiently insured.
But limo insurance goes beyond these basics to provide bundled add-ons with a view to your guests and drivers. You may want to get employment practices coverage that protects the company against litigation brought by drivers over things like sexual harassment. You would also have options that provide specific injury insurance for your employee, the driver.
The limitations of limo insurance may be higher than ordinary commercial auto coverage due to the special nature of your cars and services. Why? To begin with, the car itself will likely be much more expensive to repair or replace than an average sedan, and the car may be more likely to need expensive upgrades or equipment.
Along with expensive vehicles, you also carry more passengers on a per-ride basis than most other car service companies. These passengers may have more expensive assets to protect as well. All these added risks mean that you need insurance with high dollar values and high replacement limitations.
What Should You Look for in Limo Insurance?
So, if you need limousine insurance, what should you look for? Talk with an agent who specializes in this form of specialty coverage. Ideally, they will help you find a good insurance company that provides dedicated car service insurance and has many years of experience working with your industry.
The insurance policy itself should reflect your client pool, types of rides, fleet makeup, and driver history. If you are the only driver, for instance, you may not need employment practices coverage. If your clients tend to have a lot of high-value property with them, though, you may need to purchase additional property damage insurance.
At Metropolitan Insurance Service Consultants, Inc., we understand the unique insurance requirements for limousines. With more than 60 years of experience working with businesses in eight states, we can help you find the right policy no matter what your needs. Call today to make an appointment.