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Limousine businesses have a promising earning potential. However they have their own portion of risks. That is why it’s essential to have an insurance policy in place. Commercial limo insurance is the tailored for-hire transportation insurance program you’ll find comprehensive.
Read this guide to know how each policy works, premiums cost, where to get the best coverage, very helpful when starting a limousine business.
A commercial insurance for limousine service first crosses your mind when thinking of which policy to get for taxi and limo operations. There’s nothing wrong with this! In fact, what will be unusual is when you have a limousine service business but not think of limo service insurance at all.
Commercial auto insurance has a lot of functions.
Limo bus insurance is another essential coverage for larger vehicles used in limousine services, ensuring that buses used for group transportation are protected under similar commercial policies.
General liability insurance doesn’t only cover accidents that happen while your limousine is running. This insurance also grants protection against third-party bodily injuries or property damage that happen in the premises of your limousine business’s garage, terminal, office, and other commercial properties.
Just like the general liability insurance for taxi businesses, the general liability insurance for limousine companies comes with automatic or optional add-ons such as:
General liability insurance will protect you against bodily injury and property damage claims filed by pedestrians, clients, independent contractors, and other third parties. This insurance provides money you can use to pay the:
| CoverWallet | NEXT (Best) | GEICO | Hiscox | Progressive | |
| Per occurrence limit | $1,000,000 | $1,000,000 | $300,000/$2,000,000 | $300,000/$2,000,000 | $1,000,000 |
| Aggregate limit | $2,000,000 | $1,000,000/$2,000,000 | $300,000/$2,000,000 | $300,000/$2,000,000 | $2,000,000 |
| Products and completed operations aggregate limit | $2,000,000 | $1,000,000 | $1,000,000 | $1,000,000 | $1,000,000 |
| Advertising injury coverage aggregate limit | $1,000,000 | $1,000,000 | $1,000,000 | $1,000,000 | $1,000,000 |
| Tenant’s legal liability coverage limit | $1,000,000 | $100,000 | $100,000 | $100,000 | $100,000 |
| Waiver of subrogation included? | Yes | No | Excluded | Can be included | Excluded |
| Hired/non-owned auto liability coverage included? | Yes | No | Excluded | Can be included | Excluded |
| Equipment breakdown floater included? | No | Yes | Excluded | Can be included | Excluded |
| Can you get a certificate of insurance online? | Yes | Yes | Yes | Yes | |
| Name additional insureds? | Yes | Yes | Yes | Yes | |
| Deductible | $0 | $0 | $0 | $0 |
You and any other drivers of your limousine service business can opt to get professional liability insurance.
In real life-scenarios, this insurance is useful if a client files a claim and accuses you of overinflating your service charge, accepting payments without providing a service, or bailing out of a contract.
Professional liability insurance for limo service takes care of settlements, defense costs, and court judgments when a covered peril happens.
| CoverWallet | NEXT | Hiscox | Progressive | GEICO | |
| Per occurrence limit | $1,000,000 | $20,000/$25,000 | $1,000,000 | $1,000,000 | $1,000,000 |
| Aggregate limit | $2,000,000 | $50,000 | $1,000,000 | $2,000,000 | $1,000,000 |
| Name additional insureds? | Yes | Yes | Yes | Yes | Yes |
| Waiver of subrogation included? | Yes | No | Can be included | No | No |
| Deductible | $500 | $500 | $50/$10,000 | $500 | $500 |
You can save money on premiums by buying a business owner’s policy. A business owner’s policy is an insurance product that combines general liability and commercial property insurance.
That said, by buying a business owner’s policy, you get insurance for legal liability and commercial property damage.
| CoverWallet | NEXT (Best) | Hiscox | GEICO | Progressive | |
| General liability aggregate limit | $2,000,000 | $1,000,000 | $300,000/$2,000,000 | $300,000/$2,000,000 | $1,000,000 |
| Commercial property coverage limit | $50,000 | $25,000 | $25,000 | $25,000 | $50,000 |
| Optional policies can be added? | Yes | Yes | Yes | Yes | Yes |
| Name additional insureds for free? | Yes | Yes | Yes | Yes | Yes |
Get all the best quotes from leading providers in a click of a button!
A limousine service business can’t run on its own. Other than drivers, you need clerks and other office staff to schedule requests, bill clients, and manage finances. Mechanics are also a must as your limousine units need repair from time to time.
You need to get workers’ compensation insurance as soon as your business has its first hire.
Workers’ compensation insurance will cover the unexpected expenses on your business’s behalf if an employee sustains a work-related injury or disease. This insurance usually covers the following:
The average limousine insurance cost is $80 a month or $960 a year for a $1 million general liability coverage. The cost of limo insurance varies depending on several factors, including the size and value of your limousine, your location, driver history, and your coverage needs.
| Cost per Month | Cost per Year | Deductible | |
| General liability insurance | $80 | $960 | $0-$500 |
| Professional liability insurance | $90 | $1,080 | $500-$1,000 |
| Commercial property insurance | $85 | $1,020 | $1,000-$2,500 |
| Business owner’s policy | $165 | $1,980 | $500-$1,000 |
| Commercial auto insurance | $92 | $1,104 | $1,000-$1,500 |
| Workers compensation insurance | $100 | $1,200 | $2,000-$5,000 |
| GAP insurance | $95 | $1,140 | $1,000-$2,000 |
NEXT doesn’t have a limo insurance package. However, it can grant coverage through its passenger car rental insurance program. Policies offered are general liability, workers comp, professional liability, and more. NEXT sells this coverage with its partner, Tivly®. That said, you might be referred to Tivly® for a quote.
Average cost: $60 per month
CoverWallet provides a simple and easy-to-use online platform for searching affordable insurance from multiple partner providers. Furthermore, CoverWallet has a live chat platform where you can easily seek the help of insurance agents.
In addition, they has four tailored insurance options made by customizing the offers of its partners – general liability, general liability and commercial auto, general liability with commercial auto and inland marine insurance, and a custom plan.
Average cost: $63 per month
Get all the best quotes from leading providers in a click of a button!
Tivly® is another company that allows you to compare quotes. However, you can’t do it online. Coverage options are provided if you call a Tivly® representative. This company can help you create a highly tailored coverage consisting of different insurance policies available.
Average cost: $67 per month
Hiscox provides coverage for a variety of businesses. This company’s insurance package for limo service offers general liability, professional liability, business owner’s policy and cyber liability insurance. You get to choose between a wide range of policy limits and deductibles.
Average cost: $69 per month
GEICO has provided quality insurance products since 1936 and has consistently received praise for their excellent customer satisfaction and quality coverage options. With GEICO limo insurance, you can customize your coverage to fit your specific needs and budget.
Average cost: $71 per month
Progressive is one of the largest auto insurance companies offering a wide range of commercial insurance products, including limo insurance. Progressive limousine insurance is popular as it can be added with optional policies for the best protection.
Average cost: $75 per month
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