A limousine company can be a profitable business. However, as a business that revolves around maintaining vehicles and transporting passengers, your company must have the proper insurance to protect its assets.
What Insurance Does the Law Require?
In most jurisdictions, you must have liability insurance for your limo business. This includes bodily injury liability and property damage liability. If one of your drivers has an accident, this insurance pays for the other driver’s medical bills, repairs, and any legal costs you incur.
What Other Coverage Should a Limo Business Have?
For most businesses, liability insurance alone is not enough. To properly protect your limo business, you need additional coverage.
Collision
Having a limo out of commission can devastate your business. If a company vehicle is damaged in a collision, this coverage pays for the damages.
Comprehensive
This protects your vehicles in situations other than collisions, including:
- Fire
- Flood
- Natural disaster
- Theft
- Vandalism
If a tree falls on one of your limousines, for example, you will be glad you purchased comprehensive coverage for your limo business.
Uninsured and Underinsured Driver
If another driver hits one of your vehicles, his or her insurance should pay for the damages. However, sometimes the other driver doesn’t have sufficient insurance. In these situations, uninsured and underinsured driver coverage can make up the difference.
Your limo business is a major investment. Take steps to protect it by having the right insurance coverage.