Last Updated: February 22, 2024, 9:28 am by TRUiC Team

Kids Taxi Service Insurance

Getting insurance for your kids taxi service is essential.

Kids taxi services need to be protected against claims arising from things like employment-related disputes, negligence, and personal injury.

For example, one of your drivers is involved in an accident that injures a customer’s child, or a parent claims that your service didn’t ensure that the child made was picked up safely.

We’ll help you find the most personalized and affordable coverage for your unique business.

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Recommended: Next Insurance is dedicated to matching small businesses with the right policy at the best price.

Best Insurance for a Kids Taxi Service

General liability insurance is — generally speaking — one of the most important insurance policies for kids taxi services. 

Some of the risks general liability insurance covers are:

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

General liability is a great starting point for your kids taxi service’s coverage, though it will likely need to be supplemented with some of the following policies to protect you fully: 

  • Commercial auto insurance: Even if your drivers use their personal vehicles, this policy will be needed because their personal auto policies will not cover accidents involving business activities.
  • Workers’ compensation insurance: If your business has any employees on payroll, you are legally required to carry this policy to protect them in case they are injured or become ill on the job.
  • Home-based business insurance: If you decide to run your business’s operations from home, this policy will be needed in order to protect your business’s losses and property (which aren’t covered by a homeowner’s policy).

You can acquire the coverage you need for your kids taxi service from an insurance provider. There are two general types of these insurers: 

  • Traditional brick-and-mortar insurers — Such as Hiscox and Nationwide.
  • Online insurers — Such as Next and Tivly.

In general, businesses appear to be switching from traditional to online suppliers, who offer similarly high-quality coverage more conveniently, quickly, and affordably.

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Cost of General Liability Insurance

On average, kids taxi services in America spend between $300 - $800 per year for $1 million in general liability coverage.

Compare the average cost of general liability insurance for a kids taxi service to other professional industries using the graph below.

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.

Graph showing average price of general liability insurance prices per industry

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Find the Best Rate

Discover the best coverage at the lowest rate in our affordable business insurance review.

Common Situations That General Liability Insurance May Cover for a Kids Taxi Service

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Example 1: Your driver takes longer than estimated to pick up his rider. While waiting, the child gets bullied at the meetup spot, resulting in physical injury. The child’s parents are suing your business, claiming the incident wouldn’t have happened had the driver been on time. General liability insurance should pay the kid’s medical bills and your legal fees, should the incident go to trial.

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Example 2: A local competitor is suing, claiming your new ad campaign paints their business in a bad light, causing them to lose business. A general liability policy should cover your attorney’s fees and damages awarded by the court.

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Example 3: You are looking to expand your business and have applied for a loan to purchase an additional vehicle. As part of the terms of the loan, the bank is requiring evidence of liability insurance. Your general liability insurance should meet these requirements.

Other Types of Coverage Kids Taxi Services 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 of the most common types of coverage:

Commercial Auto Insurance

A personal auto policy excludes accidents involving business-related activities. To ensure there are no gaps in coverage, you should cover vehicles used in your kids taxi service with a commercial auto insurance policy. 

If involved in an accident, this policy would cover the cost to repair your damaged vehicle, as well as medical expenses, liability claims, and lost equipment. While the state mandates the minimum amount of coverage you must carry, business owners should consider protecting their assets by purchasing more than the minimum requirement.

You can purchase commercial auto insurance as a standalone policy or as part of a business owner’s policy (BOP), depending upon the carrier.

Workers Compensation Insurance

The state requires businesses to carry workers compensation insurance for payrolled employees.  This should cover employees who get injured while on the job. Workers compensation pays their medical bills and a percentage of wages lost while out of work due to the injury.  If an employee names you in a lawsuit because of the incident, it covers your legal fees and court-awarded damages.

Workers compensation is generally purchased as a standalone policy.

Commercial Umbrella Liability Insurance

Being a business owner in this industry exposes you to many liability risks out of your control.  Your general liability policy is the first line of defense in a liability claim. Once you exhaust the limits of that policy, the claimant can hold you financially responsible. A commercial umbrella policy adds a layer of protection, as this policy picks up where a general liability policy leaves off.

Home-based Business Insurance

Many business owners in this industry run the business’ daily operations out of their home.  But, a homeowner's policy excludes business property and losses, potentially leaving you without enough coverage.  If loss occurs, home-based business insurance fills your coverage gaps.  

You should check with your homeowners insurance company to determine if an extension of coverage for an additional premium is available.  If not, you can purchase home-based business insurance as part of a business owners policy (BOP).

Data Breach Insurance

Like most modern companies, technology is an integral part of your business’ day-to-day operations. This leaves you vulnerable to online hackers and attacks excluded on a general liability policy.  Data breach insurance insures your business for cyber attacks. Also known as Cyber Attack insurance, this policy helps cover damages from a data breach that results in stolen user data.

Additional Steps To Protect Your Business

Although it’s easy (and essential) to invest in business insurance, it shouldn’t be your only defense.

Here are several things you can do to better protect your kids taxi service:

  • Use legally robust contracts and other business documents. (We offer free templates for some of the most common legal forms.)
  • Set up an LLC or corporation to protect your personal assets. (Visit our step-by-step guides to learn how to form an LLC or corporation in your state.)
  • Stay up to date with business licensing.
  • Maintain your corporate veil.

Kids Taxi Service Insurance FAQ

Yes, absolutely. You will need to first get a quote from an online business insurance provider like Next Insurance. Next allows you to then purchase a policy immediately and your coverage will be active within 48 hours.

A typical business owner’s policy includes general liability, business interruption, and commercial 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.

"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.

Yes. Before starting your kids taxi service, it is imperative that it is protected with sufficient business insurance it could potentially encounter risks from its first day. Facing these risks unprotected leaves the financial assets of your business completely vulnerable. 

Furthermore, in cases where your business is legally obligated to carry certain policies, failure to do so could induce some serious fines.

Not necessarily. Certain exceptions may be written directly into your kids taxi service insurance policy, and some perils may be entirely uninsurable.

Yes, an LLC is meant to create a legal barrier between your business and your personal assets and credit. If you haven’t formed an LLC yet, use our Form an LLC guide to get started.

An LLC doesn’t protect your business assets from lawsuits and liability– that’s where business insurance comes in. Business insurance helps protect your business from liability and risk.