Business Insurance for Airport Shuttle Businesses

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Business insurance is designed to protect a business owner’s financial assets and is an essential investment for an airport shuttle business.

 

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About General Liability Insurance

All businesses, regardless of industry, face risks that should be covered by insurance. The most common and comprehensive type of policy business owners invest in is general liability insurance (or CGL).

Some of the risks CGL insurance covers are:

  • Bodily injury
  • Property damage
  • Medical payments
  • Legal defense and judgment
  • Personal and advertising injury

While businesses aren’t legally required to carry general liability insurance, operating without it is extremely risky. If your business is sued, you could end up facing fees totaling hundreds of thousands of dollars (or more). Having a sufficient CGL policy in place to help compensate for these damages is the only way to prevent this type of event from devastating your business.

Learn more about the risks covered by general liability insurance.

COMMON SITUATIONS THAT GENERAL LIABILITY INSURANCE WOULD COVER FOR AN AIRPORT SHUTTLE BUSINESS

Example 1: When handling a customer’s luggage, one of your employees accidentally drops a large suitcase onto a customer’s foot and breaks their toe. General liability insurance would most likely cover any ensuing medical claims that stem from this accident.

Example 2: While moving a car from its designated space, the driver backs into a garage door and breaks a large pane of glass in the process. General liability insurance would likely be available to cover the damage made to the door and the glass..

Example 3: An airport shuttle company from a nearby town decides that your name is too similar to their and sues you for loss of income. General liability insurance would likely cover the costs of fighting this claim.

Of course, this is not an exhaustive list of perils a general liability insurance policy will cover, and some conditions may result in a particular peril not being covered. It’s always best to talk to your agent in-depth about the specifics of your policy to avoid blind spots in coverage.

COST OF GENERAL LIABILITY INSURANCE

The average airport shuttle business in America spends between $450-$1,500 per year for $1 million in general liability coverage.

Check out the chart below for a snapshot of average CGL expenditure across a variety of industries:

Graph showing average price of general liability insurance prices per industry

Several factors will determine the price of your policy. These include your:

  • Location
  • Deductible
  • Number of employees
  • Per-occurrence limit
  • General aggregate limit

You may be able to acquire general liability insurance at a discounted rate by purchasing it as part of a business owner’s policy (BOP) rather than as a standalone policy. A BOP is a more comprehensive solution that includes multiple forms of coverage, such as business interruption and property insurance.

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OTHER TYPES OF COVERAGE AIRPORT SHUTTLE BUSINESSES NEED

While general liability is the most important type of insurance to have, there are several other forms of coverage you should be aware of. Below are some other types of insurance all airport shuttle businesses should obtain:

 

Commercial Auto Insurance

Commercial auto insurance is a must for airport shuttles if they own or lease the vehicles they use. Airports are extremely busy places, making them prone to minor or even major accidents. Commercial auto insurance is typically mandated by the state and is available in different coverage limits.

Airport shuttle businesses are highly encouraged to buy comprehensive commercial auto insurance with generous coverage. From bodily harm to property damage, commercial auto insurance is likely to cover a wide range of problems or accidents on the road.

 

Commercial Property Insurance

If you own the space in which your shuttles are stored, commercial property insurance will help cover the cost of your property if it is damaged in covered events like a fire or storm. This coverage will also extend to any business items located on the property, such as administrative equipment like laptops or phone systems.

 

Workers' Compensation Insurance

If your business has employees, worker’s compensation insurance is typically mandated by the state to cover any potential employee injuries.

TYPES OF COVERAGE SOME AIRPORT SHUTTLE BUSINESSES MAY NEED

In addition to the policies outlined above, there are a few other types of coverage your airport shuttle business may require depending on certain aspects of your operations. Some of these might not apply to you, so be sure to ask your agent which policies are right for your business.

 

Commercial Umbrella Insurance

Commercial umbrella insurance will cover an airport shuttle business in the event that their primary policy reaches its coverage limits. So if a passenger is severely injured due to the fault of one of your drivers, commercial umbrella insurance will most likely help cover the cost of the medical bills and any lawsuits.

 

Business Interruption Insurance

If the airport is closed due to a strike or all of your vehicles are damaged in a nasty storm, business interruption insurance can help replace the income that you will lose during this time. For an airport shuttle service that relies on certain conditions in order to grow its revenue, this can be very helpful insurance to have when you’re unable to work.

 

ADDITIONAL STEPS TO PROTECT YOUR BUSINESS

Although it’s easy (and essential) to invest in business insurance, it should not be your frontline defense. Yes, insurance will compensate for your business’ financial losses after an incident occurs, but it’s much better to avoid losses altogether.

 

With this in mind, here are three things you can do to better protect your business:

  • Use legally robust contracts and other business documents. (We offer free templates for some of the most common legal forms.)
  • Set up a limited liability company (LLC) to protect your personal assets. (Refer to our guide for step-by-step instructions on how to form an LLC in your state.)
  • Streamline your business’ internal processes. This will remove unnecessary variables from common tasks and create a safe, consistent environment for conducting business.

FREQUENTLY ASKED QUESTIONS

What is included in a business owner’s policy?

A typical business owner’s policy includes general liability, business interruption, and property insurance. However, BOPs are often customizable, so your agent may recommend adding professional liability, commercial auto, or other types of coverage to your package depending on your company’s needs.

What is the difference between business insurance and general liability insurance?

“Business insurance” is a generic term used to describe many different types of coverage a business may need. General liability insurance, on the other hand, is a specific type of coverage that business owners need to protect their assets.

Do I need insurance before I start a business?

You should invest in coverage for your business before your first interaction with a customer. Although the cost of insurance may seem high for a brand new business, it’s best to be proactive when it comes to protecting your assets. After all, you can’t buy insurance to cover a loss that has already occurred.

Will insurance protect my business from everything?

Not necessarily. Certain exceptions may be written directly into your policy, and some perils may be entirely uninsurable. Be sure to discuss the scope of your policy in-depth with your agent to avoid being blindsided by holes in your coverage.