Last Updated: February 22, 2024, 12:08 pm by TRUiC Team

Pedicab Business Insurance

Getting insurance for your pedicab business is essential.

Pedicab businesses need to be protected against things like claims of false advertising, property damage, or personal injuries.

For example, you could cause an accident with your pedicab, or a passenger could fall out and hurt themselves.

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 Pedicab Business

General liability insurance is — generally speaking — one of the most important insurance policies for pedicab businesses. 

Some of the risks general liability insurance covers are:

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

Although general liability insurance provides comprehensive coverage, there may be certain risks that your pedicab business could encounter that are not included in the policy. To manage and reduce these potential risks, it may be advisable to explore additional insurance policies, such as:

  • Business income coverage provides financial protection in case of a significant business interruption, such as a natural disaster or power outage, covering expenses like lost income and relocation costs.
  • Professional liability insurance, which offers protection against allegations of professional negligence or failure to provide proper advice or service, covering legal fees and damages in the event of a lawsuit.
  • Workers' compensation insurance, which covers medical bills and related expenses for employees who get sick or injured while performing work on the job.
  • Business income coverage, which provides financial protection in case of a significant business interruption, such as a natural disaster or power outage. It  covers expenses like lost income and relocation costs.

When obtaining insurance for your business, you typically have two options to choose from: traditional brick-and-mortar insurers like The Hartford, Hiscox, and Nationwide, or online insurers like Next and Tivly.

It is highly recommended that small businesses opt for online insurers, as they generally offer better value for money. This is because their digital business model allows them to operate at lower costs, resulting in more affordable insurance quotes compared to traditional insurers.

Let's Find the Coverage You Need

The best insurers design exactly the coverage you need at the most affordable price.

Cost of General Liability Insurance

On average, pedicab businesses in America spend between $450 - $1,000 per year for $1 million in general liability coverage.

Compare the average cost of general liability insurance for a pedicab business 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 cheapest business insurance review.

Common Situations That General Liability Insurance May Cover for a Pedicab Business

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Example 1: When you forget to load a customer’s bag into your pedicab, you run over the bag and break the high-end laptop inside. The customer asks you to pay for a replacement. General liability insurance would cover the cost of replacing the customer’s damaged property.

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Example 2: While helping a customer into your pedicab, you accidentally knock another customer to the ground. That customer breaks an arm in the fall and decides to sue your business. General liability insurance would pay for your legal defense and any required settlement.

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Example 3: A local competitor sues your business for slander. While you disagree with the accusation, you know you need an attorney to protect your interests. General liability insurance would pay for your legal defense.

Other Types of Coverage Pedicab 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 of the most common types of coverage:

Workers’ Compensation Insurance

Most states require businesses to carry workers’ compensation insurance for their part-time and full-time workers. 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 or death benefits stemming from a workplace accident. 

Commercial Property Insurance

You made a major investment to establish your pedicab business. In the event of a fire, theft, or natural disaster, commercial property insurance would cover the cost of repairing or replacing your business-related property. This includes structural damage to your building as well as the pedicabs, supplies, and other equipment stored there.

Professional Liability Insurance

While you strive to provide a service that satisfies your customers, there’s always a chance someone might decide you made a mistake or failed to perform. If a client sues your business for negligence, professional liability insurance would cover your legal fees and any required settlement.

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 pedicab business:

  • 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.

Pedicab Business 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. Acquiring business insurance prior to taking on with your initial customer is a vital step towards ensuring the long-term financial well-being of your company. Additionally, it's essential to consider purchasing commercial auto insurance if you possess company vehicles and workers' compensation insurance if you have employees while taking local laws into account.

Not necessarily. Certain exceptions may be written directly into your pedicab business 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.