Why Standard Auto Insurance Isn’t Enough for Limousine Services

Operating a limousine service in Chicago, IL comes with unique responsibilities and risks. While it may be tempting to rely on standard auto insurance, doing so can leave your business exposed to significant gaps in coverage and facing noncompliance issues. Especially in the bustling greater Chicago area, being underinsured could have dire consequences.

Understanding the Limitations of Standard Auto Insurance

Standard commercial auto insurance can cover many potential incidents involving business vehicles, such as accidents on the road and auto theft. However, many of these policies may not account for the generally greater liability risks and higher vehicle values associated with limo services. If you’re transporting clients for hire, a standard policy may not include sufficient coverage limits or financial protections.

Key Risks Faced by Limousine Services

Once you’ve identified your need for customized commercial auto coverage, you’ll want to explore your policy options and craft insurance tailored to your business. Limousine services often face several unique challenges that may require a carefully crafted policy. Consider how the following aspects of your company may impact your insurance needs:

• Greater liability risks—Transporting multiple passengers at a time or high-value clients may increase potential losses if you’re at fault for an accident.
• Professional responsibility—Clients expect a safe, reliable experience from limousine services, meaning any incident could have dire ramifications for your finances and reputation.
• Vehicle value—Limousines are typically high-value vehicles, making repairs and replacements more costly than if you owned and operated many other types of automobiles, such as taxi cabs or everyday passenger cars.

Insure Your Limousine Business Today

Don’t leave your business exposed by relying on standard commercial auto insurance. Contact the Universal Insurance Services team today to discuss tailored limousine insurance solutions designed for operators in and around Chicago, IL.

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.