As the transportation industry continues to thrive and grow, for-hire livery drivers need to be aware of the risks and how to protect their clients. Transporting people is a tremendous responsibility, and the proper insurance channels need to be explored. Livery service is where the transportation is scheduled ahead of time: limos, rideshare, black car services, shuttles, etc. The best protection is safe driving and the right insurance coverage. Here are some risks for-hire drivers face, solutions, and insurance options.
Risk Factors For Livery Businesses
For-hire drivers’ risk exposure is higher than most since the driver is responsible for their passengers. For-hire drivers do face the same risks of vehicle accidents and accidents with an uninsured driver just as any other driver, but their liabilities differ with injuries that passengers sustain while being transported and even assault claims. Experiencing any of these risks can result in costly medical bills and litigation.
Businesses that rely on transportation have been experiencing a driver shortage that has negatively affected their business, and companies that count on safe drivers expressed difficulty finding qualified drivers. The driving history of each driver affects the cost of the business’s insurance premiums. Any organization that conducts online transactions also faces the hazard of cyberattacks.
What Does Livery Insurance Cover?
Livery auto insurance is a type of commercial auto insurance for businesses that generate revenue from transporting people. For livery vehicles, a typical auto policy might not cover all livery jobs.
Each state has different requirements for livery businesses, so the coverage can differ from state and insurance carrier. Livery insurance typically covers:
- Bodily Injury – provides payment in cases of bodily injury or death resulting from an accident for which you are at fault
- Property Damage – protects you if your vehicle accidentally causes damage to another person’s property
- Medical Payments – provides payment for any medical expenses that may arise due to an employee or passenger, regardless who is at fault
- Uninsured motorist – covers the cost of medical expenses or property damage caused by a hit and run or an uninsured driver
The most common livery insurance policies are limo/black car insurance, taxi insurance, non-emergency medical transportation, and rideshare insurance.
Some of the types of livery vehicles are:
- Shuttles
- Limos and black car services
- Taxis
- Buses & tour buses
- Rideshares
- Passenger vans
- Motorcoaches
How To Protect Your Business
The best business protection is comprehensive insurance policies. General liability doesn’t provide enough coverage for some organizations, so it’s vital to discuss insurance options. Depending on the state, obtaining workers’ compensation insurance might be required to protect your employees from a workplace injury. Some additional ways to protect your business include effective hiring practices, safety procedures, and regular vehicle inspections.
Minimize Driving Risk With Biscayne
When your business relies on driving, you’re exposed to a plethora of risks, so seeking an experienced risk management team can protect your business, employees, clients, and your bottom line. At Biscayne, we recognize the unique challenges of the livery industry and strive to provide optimal solutions. Contact us today to learn more about our insurance and risk management services.