Livery Insurance For Commercial Limousine, Black Car, and Luxury Transport

Enthusiasts and connoisseurs of limousines and luxury vehicles may be excited to know that BMW is expected to build an ultra luxurious limousine that will be the manufacturer’s first official armored electric car. It appears that in addition to green technology, automobile manufacturers are pushing the frontiers of innovation by developing solutions to the physical risks of driving and riding. However, many of these technological safeguards remain in development or have limited reasonable expectations of risk mitigation.

The State of California Department of Motor Vehicles states that “insurance (also referred to as financial responsibility) is required on all vehicles operated or parked on California roads.” If you own or operate any limousines, black cars, or luxury vehicles to provide for-hire transportation services to people, you should understand the risks involved and carry a form of livery insurance. 

This article is not an exhaustive nor complete list of the legal or insurance requirements for livery services, which is why we recommend seeking the expertise of an insurance agency that specializes in for-hire transportation.

Personal auto insurance policies will deny claims wherein the vehicle was used for business purposes, including that of for-hire transportation services. Livery insurance is a specialized form of commercial auto insurance for vehicles that are operated for the purpose of generating revenue by transporting people as a for-hire service. Livery insurance includes black car insurance or limousine insurance. 

Commercial auto insurance is a broad form of coverage that generally provides coverage for the business use of a vehicle. However, livery services are exposed to a unique set of risks that are different from other commercial auto risks, as livery vehicles are frequently driven on densely populated roads while almost always transporting humans. Moreover, black car or limousine services usually involve prearranged routes and scheduled times, whereas taxi/cab and rideshare services like Uber or Lyft are usually hailed or arranged on the spot. 

Therefore, it is important to acquire insurance coverage that fits the specific nature of your transportation business. For instance, significant risk is involved in operating a limousine that is carrying a group of partying people in a downtown section. Moreover, black cars and limousines are considered luxury vehicles, which can truly benefit from higher liability limits.

The cost of coverage is determined by several factors including, but not limited to: location of transportation; vehicle type, model, make, and year; driver age; driving record; prior claims and coverage. Insurance for limousine or luxury transportation services in California may include, but are not limited to, automobile liability, general liability, workers’ compensation, uninsured motorist, collision coverage, and personal injury protection.

SWAN Insurance provides customized and comprehensive insurance solutions for businesses that provide luxury for-hire transportation services. We leverage specialized expertise to recommend coverage that protects your business from the risks of providing highly demanding transportation services, so that you and your staff can focus and work with peace of mind. 

If you have questions about livery insurance, our agents would love to speak to you and see how we can help.

Call Us Today: 858-381-3108

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