What Does Limo Insurance Cover?

Operating a limousine service comes with unique responsibilities compared with many other businesses that might utilize motor vehicles. Even when compared with the generally similar operations of a taxi company, owning limousines and catering to the high expectations of customers can require particularly robust risk management and loss control measures. Fortunately, limo insurance can provide a versatile financial safety net.

Key Coverages Included in Limo Insurance

While not always available as a named product, limo insurance policies can be crafted from standard commercial auto policies or built from several types of coverage. Regardless of how you go about procuring appropriate coverage, it should typically include several essential protections:

• Liability coverage—This is a core component of any commercial auto policy, including those tailored for limousine services. Liability coverage can help pay for bodily injury or property damage if your driver is at fault in an accident. In Illinois, state law requires minimum liability limits, but many limo businesses choose higher limits to better cover their assets and reputation.
• Physical damage coverage—This typically entails both collision and comprehensive coverage. While the former can cover repair and replacement costs involving your vehicles if they’re damaged in a crash, the latter can help manage the financial fallout arising from noncollision events such as theft, vandalism or weather-related damage.
• Uninsured/underinsured motorist coverage—Although state law requires it, some motorists may lack sufficient liability coverage to pay for your business’s losses for which they may be at fault. If your limo is involved in an accident with an at-fault and uninsured or underinsured driver, this coverage can help you recoup your losses.
• Passenger coverage—Your passengers likely expect a safe and ideal environment during their trips. Unfortunately, even the most skilled drivers and experienced businesses may run into problems in this regard. By securing appropriate coverage, such as through professional liability insurance and medical payments coverage, you can position your business to manage passengers’ losses and injuries occurring during your services.

How Our Team Supports Limo Businesses

Ready to review your limo insurance options or have questions about coverage? Contact us today to speak with one of our knowledgeable agents.

This blog is intended for informational and educational use only. It is not exhaustive and should not be construed as legal advice. Please contact your insurance professional for further information.