Chicago Taxi And Limousine Insurance Has Liability Limits That May Not Suit Larger Livery Companies
Looking for the right commercial, construction auto policy is a key requirement for any person or organization trying to invest in the paratransit and public transportation business. Where it comes to evaluating taxi and limousine insurance rates, there are a number of tips you can use that will help in locating the realistic coverage for your business at the most competitive price. Adhering to these primary steps will benefit you in realizing your target.
1. Needs of The Taxi Business
Before any person or organization can start the process of comparing quotes, it is essential to identify what your business requires in relation to protection.
Public Transportation Liability
This is a mandatory coverage that will have to be retained on all owned autos. In Chicago, the minimum limits of auto liability required by the City to allow paratransit, taxi and Limos is $ 350,000 Combined Single Limit, Each Occurrence. Other neighboring villages may ask for higher or lower limits. Most surrounding suburbs ask for at least $ 250,000 Combined Single Limit, Each Occurrence.
A self employed taxi or limo owner may not consider liability limits as significant as someone else with a fleet of taxi or limo vehicles. The amounts of business investments to be protected are different. An owner of ten taxi cabs with 10 medallions may be risking a total assets of $ 3 to $ 4 million; as opposed to $ 200,000; more or less; for a business owner of 1 medallion. Therefore, limits of liability is drastically more vital to the fleet owners.
As indicated earlier, the minimum limits of insurance in the City of Chicago for most public transport including paratransit, taxis and limos is set at $ 350,000. In 1995, an Illinois woman won $ 5.2 million in a lawsuit against Yellow Cab in connection with brain injury she suffered in a car accident. Insufficient coverage can bring very unpleasurable experiences to fleet owners.
This is to give you protection for the vehicles in the event of crash, fire, theft and other losses to the vehicles. This coverage costs between 4 to 5 percent, of the value of the vehicles; year. Most limo / taxi owners avoid buying this coverage because insurance companies do not assess their vehicles high enough, due to extreme odometer reading on these taxi / limo vehicles.
Workman's Compensation For Taxi Drivers
Another fundamental need for taxi / limo business owners is workers compensation for cab operators. Self employed and independent contractors doing business as taxi or limo drivers may find different methods to exempt themselves from this legally necessary but reliably expensive coverage, but those who hire drivers and office staff are required by law to have it.
Property and General Liability
limousine and taxi fleet owners may also find themselves in the position to keep certain property and commercial general liability cover to protect their office fixture, dispatching radios and equipment, computers, signs, money, crime, etc. Bigger Organizations find this insurance part more vital than smaller businesses or one man operations.
2. Comparing Quotes Versus Coverage
There are not many insurance companies in the Chicago area that offer tax or limo insurance at affordable rates. So the search is not as dull as it sounds. However, you need to make sure you are dealing with an independent insurance agent who knows the guidelines relating insurance liability certificates for taxi in Chicago. When starting the search for taxi or limousine insurance quotes, it is important to take advantage of contacting a few independent brokers that will provide you with that coverage. When the proposals are received, make sure to examine their prices as well as the coverage that they offer your company. In certain situations paying a little more in your rates may significantly boost the quality of your insurance.
3. Discounts and Surcharges
The key discount that taxi and limo insurance companies may provide are discounts given for having no previous losses. Discount amounts can be substantial for medium to large size tax businesses, where annual premiums may be well over 1 or 2 million dollars just for auto liability. A customer asking an insurance agent to give back a portion of commission to customers is reclassified as rebating, and is strictly illegal. Both the agent and the customer can be subject to big penalties if rebating takes place. Finally, limousine and taxi businesses may have to pay additional money if they employ younger drivers, or if they employ drivers with poor MVRs.
Source : http://ezinearticles.com/?Chicago-Taxi-And-Limousine-Insurance-Has-Liability-Limits-That-May-Not-Suit-Larger-Livery-Companies&id=6125136
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