For-hire livery insurance, also known as livery insurance, is a type of commercial auto coverage for vehicles that are used by businesses that generate revenue from transporting people.
Limousine services provide chauffeured vehicles for hire. Operations vary, but can include transportation services for corporations, such as transporting executives to/from airports, hotels, appointments, and meetings. Many businesses also serve special events, such as weddings, funerals, celebrity events, promotionals, and funerals
The most common types of livery insurance include:
Taxis provide transportation to the general public and are commonly found near large cities and airports. Traditional taxis don’t usually offer pre-arranged transport, unless sent by dispatch, and often feature lighted signage and meters.
Black car and limousine services are types of livery coverage designed to protect limos and other luxury vehicles that transport passengers on a for-hire basis. Limo and black car businesses schedule pre-arranged rides with specific pick-up and drop-off locations, and usually drive luxury sedans or SUVs.
Rideshare insurance has become increasingly popular in recent years with the growth of companies like Uber and Lyft. People who use their private vehicles for livery will need special protection that extends beyond basic auto insurance.
Livery Insurance Requirements
State requirements vary by type of service provided and vehicle capacity. Requirements can be from a little as $100,000 liability up to $1,500,000 or more. However, your limo insurance requirements may differ. When a business transports people for a fee, a great deal of liability is assumed upon the transportation company for the well being of their passengers. State limits may not provide sufficient protection. Although lower limits are available, we recommend at least a $1,000,000 liability limit.
If your business contracts with another entity to provide transportation services, such as third party transportation managers or dispatchers, they will most likely impose livery insurance requirements of their own. Such contracts often require the other party be named as an additional insured on the limo insurance policy. This is a common request. Be sure to inform your insurance agent of any such requirements.