Limo Business Insurance Requirements

limo pic
In order to know what the minimum requirements for a limo are, you need to confirm with your local, county and state government. Different laws apply in different cities. For example, the New York City Taxi Commission is seizing and fining livery vehicles from New Jersey, Pennsylvania, Connecticut and other states, with limi passengers basically being let out at roadside. For any out-of-state livery vehicles, the NYC Taxi Commission is making it mandatory they buy a special licensing decal and permit, at $500 per limo, which will allow them to pick up passengers anywhere in the city of New York. Normally the insurance requirements to operate a limo are:

  • A minimum insurance liability of $1.5 million dollars is required to transport 1- 15 passengers
  • A minimum insurance liability of $5 million is required to transport 16 passengers or greater
  • When driving a vehicle that has a passenger capacity of 16 and up which includes the driver, a commercial drivers license with passenger endorsement is necessary at all times

Companies that are not abiding by these guidelines are possibly skimping in other areas as well.  
Once  you grow your business and hire an additional driver, you will have to expand your limo insurance coverage to meet your expanded requirement
Once you’ve done that , review these  tips to reduce your insurance expense for operating a limo:

  • Employ drivers who have a clean motor vehicle driving history
  • Check with your local business organizations for group insurance discounts
  • A higher deductible should lower your premiums
  • Review your credit history and correct any errors
  • If you have completed a special driver training course for limos give that to the insurer
  • Make sure your vehicle can QVM or CMC certified
  • Consult with an insurance agent who concentrates in the limousine industry

 

 

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