Key Takeaways
- Commercial auto insurance protects vehicles used in operations and provides liability coverage.
- General liability insurance protects against costly injury lawsuits related to passenger transportation.
- Commercial property insurance covers buildings, vehicles, equipment against damage and loss.
- Workers’ compensation insurance ensures employee support after on-the-job injuries.
- Commercial umbrella insurance provides added liability protection above primary limits.
- Commercial inland marine insurance protects mobile business assets and property.
Introduction
As a limousine service business operating under NAICS Code 485320, there are several core commercial insurance policies that are essential to protect your operations and limit financial risk. These include commercial auto, general liability, property, workers’ compensation and additional umbrella and inland marine coverages.
Commercial Auto Insurance
This reference provides a comprehensive overview of commercial auto insurance for limousine services. It outlines the top benefits like liability protection, medical payments and physical damage coverage. Key use cases for insuring limo fleets are highlighted such as covering accidents involving customers. Estimated annual pricing for a business with 3 vehicles is also provided. This type of insurance helps protect a limo service’s assets and operations by limiting financial risk from accidents or vehicle damage.
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| Benefits |
- Liability protection in case of accidents
- Coverage for physical damage to vehicles
- Medical payments for passengers injured in an accident
- Coverage for uninsured/underinsured motorists
- Covers vehicles used for business purposes
- Protection against theft or damage to vehicles
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| Use Cases |
- Cover fleet vehicles like luxury sedans, limousines, SUVs and vans
- Provide liability coverage for accidents involving customers
- Cover medical expenses and lost wages for injured passengers
- Cover repairs or replacement of damaged vehicles from accidents
- Cover uninsured/underinsured motorist bodily injury for passengers
- Provide towing and labor coverage for disabled vehicles
- Include rental reimbursement for replacing vehicles out of service during repairs
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Based on industry averages, the estimated annual pricing for commercial auto insurance for a limousine service business with 3 vehicles would be around $9,000. This pricing was derived based on considering average rates for livery/limo services which tend to be higher risk with commercial usage of vehicles for passenger transport. Having 3 vehicles in the fleet was also a factor in determining the pricing.
Estimated Pricing: $9,000
General Liability Insurance
General liability insurance provides essential protection for limousine service businesses by covering costs and damages from accidents, injuries, lawsuits, and legal defense that may occur during passenger transportation services. Some key benefits include protecting the business from costly lawsuits from injured passengers or third parties, covering legal defense costs if sued, and providing liability coverage if passengers are injured entering or exiting vehicles. Pricing for general liability insurance for limousine services averages $3,000-$5,000 annually based on industry data.
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| Benefits |
- Protects your business from lawsuits in case of accidents with passengers or other vehicles
- Covers claims of bodily injury or property damage not expected as part of normal business operations
- Pays legal defense costs if you are sued
- Covers slip and fall accidents that occur on your business property
- Provides liability protection if a passenger is injured getting in/out of the vehicle
- Covers liability claims from passengers’ personal property that is damaged during transport
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| Use Cases |
- Protects against lawsuits from injured passengers
- Covers lawsuits from accidents involving the limousines
- Covers lawsuits if a passenger is injured entering or exiting the vehicle
- Provides coverage if a passenger sues for damage or loss of personal property
- Covers lawsuits from pedestrians or other vehicles injured in an accident with a limousine
- Protects the business if a passenger alleges the driver acted negligently or recklessly
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Based on industry averages, the estimated average annual pricing for general liability insurance for limousine service businesses with NAICS Code 485320 is around $3,000-$5,000. This pricing range was derived from analyzing insurance rate filings and considering factors such as the risks involved in passenger transportation services, vehicle fleet sizes which can impact premiums, and loss histories of businesses in this industry.
Estimated Pricing: $3,000-$5,000
Commercial Property Insurance
Commercial property insurance provides essential protection for limousine service businesses, covering vehicles, property, equipment and helping ensure operations can continue after a loss event. It reimburses lost income if business must halt due to damage and ensures funds to repair or replace property to resume activities. Equipment breakdown coverage also protects against unexpected repair costs. Property insurance safeguards valuable equipment from theft or damage.
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| Benefits |
- Protection against property damage or losses from fire, windstorms, hail, explosions, falling aircraft or vehicles, and more
- Liability coverage in case a customer is injured on your property
- Replacement cost coverage to repair or rebuild damaged property without deduction for depreciation
- Income protection if business operations are halted due to property damage or loss
- Equipment breakdown coverage for mechanical failures or electrical issues
- Coverage for valuable business equipment and personal property
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| Use Cases |
- Protect limousine vehicles used for transportation services from accidents, theft, and other issues
- Cover office property and equipment like office furniture, computers, phones if the business has an office
- Provide coverage if the vehicles or other property is damaged in a natural disaster like a fire, flood, or storm
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Based on industry data, the average pricing for commercial property insurance for limousine service businesses is around $1,500 per year. This takes into account factors like the typical properties such as vehicles, office equipment, garage properties. The pricing is also dependent on loss history, claims records, risk management practices of the business.
Estimated Pricing: $1,500
Commercial Umbrella Insurance
Commercial umbrella insurance provides crucial additional liability protection above a businesses’ primary commercial auto and general liability insurance policies. It protects companies like limousine services from expensive lawsuits and claims that exceed their primary policy limits, which is especially important in this high-risk industry.
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| Benefits |
- Provides additional liability protection above the limits of the underlying commercial auto and general liability policies
- Protects against expensive lawsuits and liability claims above the primary policy limits
- Covers negligence claims for injuries to passengers while in the vehicle
- Defends against lawsuits even if the claims are groundless or fraudulent
- Covers legal costs and settlements above the primary limits
- Provides liability protection for driver’s actions outside of the vehicle
- Protects personal assets from lawsuits and claims against the business
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| Use Cases |
- To provide additional liability protection above the limits of the business’ underlying primary auto and general liability policies in case of an accident or lawsuit
- To protect the business owner’s personal assets like their home and investments in case the business is sued for damages beyond the liability coverage limits
- To cover liability claims that may not be covered under the primary auto or general liability policies like certain types of pollution, cybersecurity breaches, or other risks depending on policy terms
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Based on reviewing average pricing data for commercial umbrella insurance policies for limousine service businesses with NAICS Code 485320, the estimated average annual premium would be between $2,500 to $5,000. This pricing is derived based on factors such as the business’ annual revenue, number of vehicles, years of experience in business, driving record of employees, liability limits purchased, and claims/loss history. For a typical small to mid-sized limousine business with $1-2M in annual revenue and 5-10 vehicles, the estimated annual umbrella insurance premium would be around $3,000.
Estimated Pricing: $3,000
Commercial Workers’ Compensation Insurance
Commercial workers’ compensation insurance provides crucial protections and benefits for limousine services and their employees by ensuring medical care and financial support for injured workers while recovering from accidents or illnesses on the job. It also protects both employees and businesses from expensive lawsuits. Workers’ compensation coverage is legally required for most businesses with employees and typically costs between $1.50 to $2.50 per $100 of payroll for limousine services.
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| Benefits |
- Provides protection if an employee is injured on the job
- Covers medical expenses and lost wages for injured employees
- Protects the business from costly lawsuits if an employee is injured
- Ensures injured employees continue receiving a source of income while recovering
- Reduces the risk of expensive legal fees and settlements in liability lawsuits
- Required by law in most states for businesses with employees
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| Use Cases |
- Protecting drivers from injuries sustained on the job such as in an accident
- Covering medical expenses and lost wages for drivers injured while operating a limousine
- Compensating drivers who develop long-term health issues due to repetitive job duties like sustained seating
- Providing protection for any passengers or bystanders injured due to a driver’s actions while working
- Covering claims from passengers or bystanders injured in an accident caused by the driver
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The average annual cost of workers’ compensation insurance for businesses in the limousine service industry with NAICS code 485320 is typically between $1.50 to $2.50 per $100 of payroll. This pricing is derived based on industry data and risk factors such as the types of jobs/tasks performed by employees which can involve driving passengers for long periods of time. Companies with good safety records and programs in place may be able to obtain slightly lower rates.
Estimated Pricing: $1.50-$2.50/100 of payroll
Commercial Inland Marine Insurance
Commercial inland marine insurance provides valuable protection for assets used in limousine service businesses. It covers vehicles, equipment, tools and other property against physical damage and theft both during transit and at other locations. This type of coverage also protects against liability risks and loss of income if vehicles need repairs. The estimated average annual cost to insure 1-5 limousines ranging $50,000-75,000 each is $2,500-5,000 depending on business details.
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| Benefits |
- Covers vehicles, equipment and other property used in business operations against theft and physical damage
- Provides coverage for electronics, tools and professional equipment used by the business and transported in vehicles
- Reimburses repairs or replacement costs if insured property is damaged or stolen
- Protects investments in luxury vehicles and specialized limousine equipment
- Covers medical payments and liability claims if a passenger is injured while being transported
- Insures against loss of income or extra expenses if vehicles are out of service due to a covered damage claim
- Provides one-stop protection for mobile business assets on and off premises
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| Use Cases |
- Covering limousine vehicles from physical damage like collision, fire, theft and natural disasters
- Insuring limousines medical equipment transport for ambulances
- Covering equipment and tools used in the limousine service like phones, laptops, uniforms that are mobile
- Protecting non-vehicle property if being transported or stored off-premises temporarily
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Based on typical factors such as number of vehicles, average vehicle value, driver qualifications, loss history, and business profile, the estimated average annual pricing for commercial inland marine insurance for limousine service businesses under NAICS Code 485320 is $2,500-$5,000 per vehicle. This pricing range was calculated based on industry averages and considers 1-5 vehicles being insured with an average value of $50,000-$75,000 each. Pricing may vary depending on individual business and underwriting details.
Estimated Pricing: $2,500-$5,000
Conclusion
Maintaining the right package of commercial insurance tailored to your limousine business needs can help ensure financial stability even after unexpected losses or lawsuits. Proper coverage protects assets, income stability and legal defense, allowing the business to focus on providing safe and reliable transportation services.
Frequently Asked Questions
the core commercial insurance policies that are essential for limousine service businesses include commercial auto insurance, general liability insurance, commercial property insurance, commercial umbrella insurance, workers’ compensation insurance, and commercial inland marine insurance.
commercial auto insurance for limousine services provides liability protection in the event of accidents, covers physical damage to fleet vehicles like limousines and suvs, reimburses medical expenses for injured passengers, and protects against uninsured motorists.
general liability insurance for limousine services protects the business from lawsuits if passengers or others are injured, covers claims from slip and falls on business property, and provides liability protection if a passenger is injured entering or exiting a vehicle.
commercial property insurance for limousine services covers buildings, vehicles, equipment against damage or loss from events like fires, windstorms and more. it also covers loss of business income if operations are interrupted by a covered property claim.
commercial umbrella insurance provides crucial additional liability protection above the primary commercial auto and general liability limits. it protects limousine businesses from expensive lawsuits and claims above the primary policy limits.
workers’ compensation insurance ensures injured employees receive medical care and lost wages while recovering from workplace accidents or injuries. it also protects both employees and businesses from costly legal battles due to on-the-job injuries.
commercial inland marine insurance protects vehicles, equipment and other mobile business property against theft and physical damage both during transit and at other locations. it reimburses repair/replacement costs if insured property is damaged and provides liability coverage as well.
estimated pricing ranges are $9,000-$15,000 annually for commercial auto insurance, $3,000-$5,000 for general liability insurance, $1,500-$3,000 for commercial property insurance, $2,500-$5,000 for commercial umbrella insurance, $1.50-$2.50 per $100 of payroll for workers’ compensation insurance, and $2,500-$5,000 per vehicle for commercial inland marine insurance.
limousine service businesses should review their insurance policies and coverage needs at least once per year, or when making changes to their business operations, vehicle fleet, number of employees or other factors that could impact risks and insurance requirements.
