What is Livery Auto Liability?
Livery auto liability insurance is a specialized type of commercial auto coverage designed for vehicles used to transport people for a fee. This includes services like limousines, taxis, non-emergency medical transport (NEMT), rideshare, and other chauffeured transport. The policy helps cover bodily injury and property damage if your driver is at fault in an accident while operating a business vehicle.
Who Needs It
If you operate a vehicle-for-hire business, you likely need livery auto liability insurance. This includes:
- Limousine services
- Taxi and shuttle operators
- Rideshare drivers in certain states
- Private car services or black car businesses
- Non-emergency medical transportation (NEMT)
Many state and local laws require proof of coverage before a business can operate legally.
What It Typically Covers
Livery liability policies generally include:
- Bodily Injury Liability: Helps pay for medical costs of other parties if your driver causes an accident.
- Property Damage Liability: Covers damage to another person's property caused by your business vehicle.
- Legal Defense: May include legal fees if your business is sued after an accident.
Common Exclusions and Limitations
Every policy has exclusions. Common ones include:
- Intentional damage or illegal activity
- Off-duty use by unauthorized drivers
- Mechanical failure or routine maintenance
Coverage specifics can vary greatly, so it’s important to review your policy carefully.
Factors That Influence Cost
Several factors may affect your premium, such as:
- Type and size of your vehicle fleet
- Driving records of your employees
- Coverage limits and deductibles
- Location and service area
- Years in business and claims history
Proof of Insurance and Compliance
Most cities and states require livery businesses to carry minimum levels of auto liability insurance. You may need to provide a Certificate of Insurance (COI) when registering vehicles, applying for permits, or signing contracts. Requirements can differ based on location, so check with your local regulatory agency.
How to Get a Quote
Getting coverage tailored to your livery business is important. Work with a provider who understands commercial auto and livery liability needs. Request a quote today to get started.
Frequently Asked Questions
Is livery auto liability the same as regular commercial auto insurance?
No, livery insurance is specifically for vehicles that carry passengers for compensation, which often requires higher coverage limits and different underwriting.
Does this insurance cover my vehicle if it gets damaged?
No, livery liability only covers damage or injury to others. You would need physical damage coverage or a full commercial auto policy for your own vehicle protection.
Can I use a personal auto policy for my livery business?
Typically no. Personal auto insurance usually excludes coverage when the vehicle is used for commercial or livery purposes.
What documents do I need to show proof of insurance?
You may need to provide a Certificate of Insurance (COI) listing your coverage limits and policy details to regulators or business partners.
Are rideshare drivers required to have livery liability insurance?
It depends on the state and the rideshare company’s policy. Some states require special coverage or endorsements for rideshare use.
Still have questions? Talk to a local insurance expert.