Limousine Company Insurance
Getting insurance for your limousine service is essential.
Limousine services need to be protected against things like claims of personal injury, breach of contract, and property damage.
For example, one of your limousine’s could get into an accident and cause property damage or personal injuries, or a client could sue you for breaching a transportation contract.
We’ll help you find the most personalized and affordable coverage for your unique business.
Recommended: Next Insurance is dedicated to matching small businesses with the right policy at the best price.
Best Insurance for a Limousine Company
General liability insurance is — generally speaking — one of the most important insurance policies for limousine services.
Some of the risks general liability insurance covers are:
- Bodily injury
- Property damage
- Medical payments
- Legal defense and judgment
- Personal and advertising injury
Limousine services are faced with a range of risks, some of which are not covered by general liability. As a result, many of these companies invest in additional policies like:
- Workers’ compensation insurance to cover any employees you hire.
- Commercial auto insurance to cover your vehicles.
- Commercial umbrella insurance to cover any costs that go beyond your other policies’ limits.
- Commercial property insurance to cover your company’s equipment, such as computers and printers.
When purchasing business coverage for your limousine service, realize that insurance providers can be divided into two categories:
- Traditional brick-and-mortar insurers
- Online insurers
The category you choose will depend on your specific circumstances. However, we recommend online insurers for most small businesses due to their lower costs, greater flexibility, and speedier service.
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Cost of General Liability Insurance
The average limousine company in America spends between $450 - $1,000 per year for $1 million in general liability coverage.
Compare the average cost of general liability insurance for a limousine company 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.
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Common Situations That General Liability Insurance May Cover for a Limousine Company
Example 1: During a tour of your facilities, a potential client trips and breaks an arm. He asks you to pay for his medical treatment. General liability insurance would cover the client’s medical bills.
Example 2: While running late for a pickup, a driver forgets a client’s luggage on the side of the road. A passing truck runs over the fallen luggage, which contains expensive jewelry. General liability insurance would cover the cost to repair or replace the client’s damaged property.
Example 3: After holding the car door open for a client, you close the door too soon and accidentally injure the client’s hand. The client decides to file a lawsuit. General liability insurance would cover your legal fees and any damages awarded in a settlement.
Other Types of Coverage Limousine Companies 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
Because your business focuses on transportation, a commercial auto insurance policy is essential. Any vehicle you use primarily for business requires this coverage. Your policy will protect your vehicles, drivers, and others on the road in the event of an accident by covering any related vehicle repair costs as well as medical treatment for anyone injured.
Workers’ Compensation Insurance
Most states require businesses to carry workers’ compensation insurance for their part-time and full-time employees. This coverage protects your employees if they become injured at work or fall ill after a work-related accident. It not only covers an employee’s medical bills and lost wages if they need time to recover, but also any disability benefits stemming from a work-related accident.
Commercial Umbrella Insurance
While your general liability insurance policy covers most claims, some accidents or lawsuits may be so catastrophic that they threaten to exhaust the limits of your primary coverage. Commercial umbrella insurance protects you from paying out-of-pocket for any legal fees and awarded damages that exceed your primary policy.
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 limousine company:
- 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.
Limousine Company 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. It is essential that your limousine service purchase a sufficient amount of business insurance before accepting customers because it could face many legal and financial liabilities from day one (e.g., guest injury, property damage, etc.).
Facing these liabilities without adequate insurance coverage will be extremely expensive and threaten your company’s financial health.
Not necessarily. Certain exceptions may be written directly into your limousine company 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.