Limo Insurance

For most people who are starting their limo services will know very little about the insurance requirements of their cars and their business. There aren’t many resources available that you can use and most agents will not know much about this specialized business to advice you properly. It is vital that you must protect yourself along with your clients if you own and operate a limo company. For most owner operators, there are 3 types of insurance that they should have. The first and most important is the commercial auto protections insurance. You must also carry extra liability insurance, over what is available in your commercial auto protection insurance. This is to take care of your clients even if they do the dumbest things during their alcohol induced stupor. The last insurance coverage necessary is to protect your operations with a business insurance coverage.

Most limo operators start out as a one-man-show. You would most probably be working at home out of a small garage and managing most routine car maintenance yourself. You will require full coverage limo insurance for your vehicle and your business. Under most circumstances normal comprehensive coverage for a private car isn’t enough. You will need to expand your insurance to protect your car and your business. Since most limos are specialty vehicles, their costs can’t be marked to market so you car insurance policy will need to be that of an agreed value. Another extra insurance coverate items that you should beef up is “theft of content” coverage. Most limos are very well equipped and theft of anything like TVs or alcohol inside should be insured against.

You must also take into account where you garage your limo. You will want to insure against anything that can happen to your limo where it is garaged. Since your limo is now a part of your business it is vital that you carry enough insurance that should a catastrophe were to take place, you will be able to bounce back quickly. You should also think about insuring your office where you keep your contacts and you papers. This is an equally important part of your business that you shouldn’t forget about.

Limo operators have very specific business conditions that they have to protect against. This is where a good relationship with an insurance agent can come im very helpful. One condition that many limo drivers encounter is damage to the interior of their cars. This can be from spills, vomits, torn upholstery etc. There normally is a coverage option called “Exceptional Wear and Tear” coverage however it might be called differently depending on where you live. You should also have additional medical and disability insurance since driving a limo similar to driving a truck. This could mean additional pressure on your back and neck causing long term medical problems.

In addition to just upgrading your insurance, limo operators might also consider looking for warranty packages. Most limos aren’t new vehicles anymore and do require quite a sum on maintenance. Some specialty makes like Rolls Royce or some old Daimlers can cost you as much as your house to repair. Buying something to protect against the cost of huge repairs is a very wise decision.

As your limo operations increase in size you must be ready to increase your insurance coverage too. Most of the time milestones like purchasing another vehicle or even hiring another driver should be markers to indicate that you need to review your insurance plan and make additions where necessary. Don’t skimp on insurance, there simply isn’t any benefit in doing so.