Eliminating Gaps in Coverage: General Liability Coverage for Taxi, Limo and Black Car Services
Taxi, limo and black car drivers may be surprised to know they’re culpable for more types of accidents than they think. With more than 400,000 of these drivers in the country, according to a January 2017 IBISWorld report, not only do they face a variety of exposures, they may experience an unexpected potential gap in coverage.
These drivers have auto insurance to cover their liability, and, for larger operations with a service garage and their own fleet, a garage keeper’s policy as well. However, what happens when a claim arises from an occurrence where neither of those policies is providing coverage?
The following claim example is one that wouldn’t be covered under a driver’s auto or garage keeper’s policy.
A taxi driver picked up a passenger, who was using a cane, at the supermarket. The passenger asked the driver to make a quick stop at the post office before continuing to his final destination. At the post office, the passenger exited the cab, was walking toward the post office and slipped on snow and ice in the post office parking lot. The passenger suffered a fractured leg. He filed suit, naming the taxicab company as a defendant, alleging the driver was negligent in discharging the passenger in an area that was visibly unsafe for pedestrian travel. The claim was settled without trial.
This is a great example of the need for USLI’s Office product for taxi, limo and black car services. In a situation such as the one above, neither the taxi company’s auto liability nor the garage keeper’s policies would have responded. Without a premise limitation, USLI’s product is built to address the needs of these transportation companies to have protection off-premise and outside of the vehicle where other policies would not respond.
USLI’s policy is not just for slip and fall coverage; the following claim shows how a second scenario would be covered with a USLI policy.
ABC Limousines, an insured limousine driving company, was a new business; they selected their business name, logo and services and started advertising. A competing company, ACB Limousines, sued ABC Limousines for infringement, claiming the name they chose was too similar to their own registered trade name and trademark, and, as a result, ACB lost profits and goodwill of customers. The policy provided a defense, and the claim was settled with payment. ABC Limousines also agreed to change their name and logo.
Many companies are unaware that they will not be covered in the event of a loss similar to the two outlined above.
USLI policies include up to $5,000,000 in property coverage and up to 10,000 square feet per location of general liability coverage for dispatch offices, service garages and fleet parking lots.
Beyond coverage, USLI offers policyholders centralized access to business solution vendors through the Business Resource Center. Some of these vendors are at the top of the list for investment property owners and can offer free or discounted:
- Background checks
- Tenant screenings
- Identity theft protection
- Safety tools
- Marketing and social media best practices
- Website design and Search Engine Optimization (SEO)
Contact your Commercial Lines underwriter today to quote your taxi, limo and black car services.
Contact Kathy Scrivner
Assistant Vice President, The Office Product Leader | 888-523-5545 Ext. 2270
Underwriter, The Office Assistant Product Leader | 888-523-5545 Ext. 2512
Written by David Ford
September 7, 2017