Top Business Insurance Options for Taxi and Limousine Services with NAICS Code 4853

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This guide covers the top business insurance policies taxi and limousine companies should consider including commercial auto, general liability, non-owned auto liability, commercial property, commercial umbrella and more.

Key Takeaways

  • Commercial auto insurance protects from liability in vehicle accidents and covers fleet vehicles
  • General liability insurance covers lawsuits over passenger injuries during transport
  • Non-owned auto liability provides coverage for independent contractor vehicles
  • Commercial property insures owned vehicles, equipment and business properties
  • Commercial umbrella offers additional liability protection above primary policies
  • Commercial inland marine covers business assets like vehicles and electronics
  • Commercial crime protects against theft, embezzlement and cyber risks

Introduction

As a taxi or limousine business operating under NAICS code 4853, there are several essential business insurance policies to consider. Due to risks involved in transporting passengers, commercial auto, general liability and non-owned auto liability coverage are necessities. Commercial property insures valuable business assets like vehicles and equipment. Commercial umbrella, inland marine, crime and cyber policies also provide important coverage layers specific to this high-risk transportation industry.

Commercial Auto Insurance

“Commercial auto insurance provides essential coverage for taxi and limousine companies. It protects them from liability in case of accidents with passengers or other drivers, covers damages to their fleet vehicles, and pays for medical expenses and lost income when vehicles cannot be used.”

Category List
Benefits
  • Liability protection in case of accidents with passengers and other drivers
  • Coverage for damage to company vehicles
  • Medical payments coverage for injured passengers
  • Uninsured/underinsured motorist coverage
  • Coverage for lost business income if vehicles are damaged and out of service
  • Coverage for ridesharing gaps between private use and commercial operation
  • Discounts for good safety record and driver training programs
Use Cases
  • Liability coverage in case of accidents
  • Physical damage coverage for fleet vehicles
  • Medical payments coverage for passengers
  • Income replacement coverage if a vehicle is totaled or taken off the road for repairs

Based on industry data and analysis, the average estimated pricing for commercial auto insurance for businesses in the taxi and limousine service industry with NAICS code 4853 is around $5,000-$7,000 per year per vehicle. This pricing takes into account factors like the high risk nature of the business, number of miles driven annually per vehicle, safety record, and number of years in business. The price provided is an average and actual quotes may vary depending on individual business profile and underwriting factors.

Estimated Pricing: $5,000-$7,000

Commercial General Liability Insurance

Commercial general liability insurance provides important protection for taxi and limousine businesses. It covers legal fees and damages if the business is sued for injuries or damages caused to passengers or others during transport. This type of insurance is essential for taxi and limousine businesses due to the risks they face from transporting passengers. It protects them from costly lawsuits that could result from accidents that injure passengers or others, or incidents where passengers allege they were harmed by drivers. Liability coverage also extends to incidents involving slipping or falling that occur when passengers enter or exit vehicles. Pricing is estimated around $3,000-$5,000 annually based on fleet size, revenues, safety record and claims history.

Category List
Benefits
  • Protection against third party claims for bodily injury and property damage
  • Defense against lawsuits filed by passengers for accidents
  • Coverage for medical expenses if a passenger is injured
Use Cases
  • To cover liability if a passenger is injured in a vehicle accident
  • To cover liability if a passenger’s property is damaged while in a vehicle
  • To cover liability if a pedestrian or other vehicle is involved in an accident with a taxi/limousine
  • To cover liability if a passenger alleges they were assaulted or battered by the driver
  • To cover liability from slip and fall incidents that occur when passengers enter/exit the vehicle

Based on industry data and average claims, the estimated pricing for commercial general liability insurance for businesses in the taxi and limousine service industry with NAICS code 4853 would be around $3,000-$5,000 annually. Key factors that determine pricing include number of vehicles, annual revenue, driver qualifications, safety record, and claims history. Larger fleets with higher revenues and poorer safety records tend to be on the higher end of the range.

Estimated Pricing: $3,000-$5,000

Non-Owned Auto Liability Insurance

Non-owned auto liability insurance protects businesses that rely on independent contractors or employees using personal vehicles for commercial transportation services. It covers liabilities if accidents occur involving those non-owned vehicles during business activities. Some key benefits of this type of insurance for taxi, limousine and transportation companies include protecting against lawsuits from accidents caused by contract drivers in their personal vehicles, meeting requirements from partnerships, and providing coverage when rental vehicles are unavailable. Pricing is usually around $2,000 annually per vehicle depending on company size and risk factors.

Category List
Benefits
  • Protect against liability claims from accidents involving vehicles not owned by your business
  • Cover injuries and property damage to third parties from accidents involving contract drivers’ personal vehicles
  • Meet contractual requirements from rideshare partnerships that mandate this type of coverage
  • Provide coverage when company or rental vehicles are unavailable and a personal vehicle must be used
  • Peace of mind knowing your business is protected from uninsured motorist claims
  • Complies with regulatory requirements for commercial transportation businesses
  • Adds an extra layer of protection above personal auto insurance for incidents during commercial transport
Use Cases
  • Covering liabilities if an employee or driver uses their personal vehicle for business purposes
  • Protecting the business if a non-owned vehicle is involved in an accident while transporting passengers for hire
  • Providing liability coverage if an employee causes an accident while making deliveries or transporting equipment in a non-owned vehicle

Based on typical insurance rates for businesses in the taxi and limousine service industry (NAICS Code: 4853), the average annual premium for non-owned auto liability insurance is around $2,000 per vehicle. This pricing is derived based on standard insurance rating factors such as number of vehicles operated, annual miles driven, driver qualifications, loss history, coverage limits, deductibles, and other policy terms and conditions.

Estimated Pricing: $2,000

Commercial Property Insurance

Commercial property insurance is critical for taxi and limousine service businesses like those operating under NAICS Code 4853 to protect their valuable vehicles, equipment and properties. It ensures the business can continue operating smoothly without disruption when insured assets are damaged or destroyed.

Category List
Benefits
  • Protects vehicles and equipment against damage and theft
  • Covers liability in case of accidents involving vehicles
  • Reimburses loss of earnings if vehicles are out of service due to insured damage
  • Covers property and vehicles during transportation
  • Insures office equipment and buildings against damage and theft
  • Covers medical payments for injured passengers
  • Protects drivers with liability coverage for bodily injury and property damage
  • Provides replacement cost coverage to repair or replace vehicles and equipment
Use Cases
  • Coverage for vehicles like taxis, limousines and other fleet vehicles used for commercial transportation
  • Coverage for garages, offices and other commercial properties used for business operations
  • Protection against losses from fire, theft, vandalism and other perils for commercial properties
  • Reimbursement for financial losses during business interruptions due to insured property damage

Based on industry research and analysis of risk factors, the estimated average annual pricing for commercial property insurance for businesses in the taxi and limousine service industry (NAICS Code: 4853) is around $1,200-$1,500 per year. This range was derived by taking into account factors like business size (number of vehicles owned), coverage limits, deductibles, loss history, security measures, and geographic location. Businesses owning 3-5 vehicles and operating in urban areas were used as a baseline for this estimate.

Estimated Pricing: $1,200-$1,500

Commercial Umbrella Insurance

Commercial umbrella insurance provides an additional layer of liability protection for businesses in the high-risk taxi and limousine service industry. It can help protect their assets and livelihood from catastrophic claims by covering legal costs and damages above primary insurance limits.

Umbrella insurance is especially important for taxi and limousine services due to the risks of lawsuits over auto accidents and passenger injuries. It provides critical extra coverage over policies like auto, general liability and others. This added protection helps ensure the long-term viability of their business operations.

Category List
Benefits
  • Provides additional liability coverage above the limits of your regular business insurance policies
  • Protects your assets from large loss claims and lawsuits
  • Covers legal costs if you’re sued for amounts higher than your primary insurance limits
  • Covers claims against the business owner individually in addition to claims against the business itself
  • Provides liability coverage for incidents related to the ownership or use of your vehicles for commercial purposes
  • Protects non-vehicle business assets such as property and equipment in case of loss claims exceeding primary policy limits
Use Cases
  • Protect against catastrophic claims from auto accidents that exceed primary auto and general liability coverage limits
  • Cover lawsuits from passengers injured in vehicle accidents
  • Provide additional protection for property damage claims
  • Cover negligence lawsuits from passengers, pedestrians or other drivers involved in accidents
  • Protect assets like property and equipment from large lawsuits
  • Cover accidents and injuries while passengers are getting into or out of the vehicle
  • Protect against lawsuits from slip and fall accidents that occur near the vehicle

Based on typical umbrella insurance pricing models, businesses in the taxi and limousine service industry can expect to pay around $2-$5 per every $100 of underlying liability limits, such as general liability, auto liability, etc. Given that most taxi and limousine companies carry at least $1 million in underlying coverage, the estimated annual premium would be $20,000-$50,000 for $1 million of umbrella coverage. The actual premium may vary depending on factors like company size, years in business, safety record, etc.

Estimated Pricing: $20,000-$50,000 annual premium for $1 million umbrella coverage

Commercial Inland Marine Coverage

Commercial inland marine insurance provides coverage for business property other than vehicles, equipment, and inventory that is movable or portable. It protects assets that are essential to operations for taxi and limousine services.

Some key benefits of commercial inland marine coverage for taxi and limousine services include covering vehicles, tools, equipment and other property used in daily operations. It also provides liability protection if business property causes damage to a third party. Medical payments are covered if an injury occurs involving insured business property. Signs, awnings and outdoor fixtures are also covered. Property is protected while in transit, storage or temporarily away from the primary location.

Common use cases for taxi and limousine services include coverage for owned, leased or rented vehicles. Electronics like tablets used for ride-hailing apps are also covered. Other business property used but not permanently attached to vehicles like uniforms and branded merchandise receives protection. Accessories installed in vehicles such as partitions, credit card machines and signage are covered as well.

Category List
Benefits
  • Covers damage or loss to vehicles used for taxi or limousine services like taxis, limos, and shuttle vans
  • Protects business assets while in transit or temporarily away from the primary location
  • Covers theft of business property like tools, equipment, and electronic devices used for taxi/limo services
  • Provides liability protection if business equipment/property causes damage to a third party
  • Covers medical payments if an injury occurs involving insured business property
  • Covers property in storage, whether at the primary location or off-site
  • Covers signs, awnings, and outdoor fixtures and equipment
Use Cases
  • Coverage for vehicles owned, leased or rented by the business
  • Coverage for electronic equipment like tablets used for ride-hailing apps
  • Coverage for other business property used but not permanently attached to vehicles like uniforms, branded merchandise
  • Coverage for extra accessories installed in vehicles like partitions, credit card machines, signage

Based on average fleet sizes and values for taxi and limousine services, the estimated annual price for commercial inland marine coverage would be around $2,500. This pricing assumes an average of 15 vehicles in the insured’s fleet with an average value of $30,000 per vehicle. The rate was calculated at 1% of total insured value.

Estimated Pricing: $2,500

Commercial Crime Insurance

Commercial crime insurance provides important protection for businesses in the taxi and limousine service industry against common risks like employee theft, embezzlement, robbery, and cybercrime. It reimburses costs from fraudulent activities, covers legal fees, forensic investigations, client notifications, and helps mitigate financial losses. Commercial crime insurance also offers coverage at reasonable premiums for small businesses in this industry.

Category List
Benefits
  • Protects against employee theft including theft of cash, credit cards or identity theft
  • Covers business losses from employee dishonesty like embezzlement
  • Reimburses legal fees and costs if a fraudulent act is committed by employees
  • Protects against vendor or client theft of personal driver information like home address, license numbers, etc.
  • Covers costs of notifying clients if their private information was compromised due to employee theft
  • Covers losses from credit card fraud committed by rogue employees
  • Reimburses costs of forensic investigation and fraud recovery services in case of employee fraud
  • Provides insurance coverage at a competitive, affordable cost for small businesses
  • Mitigates risks associated with handling large cash transactions on a daily basis
Use Cases
  • Employee theft of cash from fares
  • Embezzlement of cash receipts by employees
  • Theft of vehicles by employees or others
  • Robbery of cash from drivers
  • Cybercrime such as credit card fraud or data breach

Based on typical commercial crime insurance rates for businesses in the taxi and limousine service industry (NAICS Code 4853), the estimated average annual pricing would be around $1,200. This price was derived based on considering the industry risk level and average claims amounts. As taxi and limousine services often handle cash transactions, they face risks such as robbery and employee theft. The $1,200 price provides coverage of up to $50,000.

Estimated Pricing: $1,200

Commercial Cyber Liability Insurance

Commercial cyber liability insurance is an important coverage for businesses in the taxi and limousine service industry due to their regular handling of sensitive customer payment and personal data.

Commercial cyber liability insurance can help protect businesses in the taxi and limousine service industry from the financial fallout of a data breach or network security incident by covering costs associated with notification of affected customers, credit monitoring services, legal fees, fines and penalties from regulatory agencies, and reputational damage reducing future business. With an average estimated annual premium of $1,500, commercial cyber liability insurance is a prudent investment for taxi and limousine services.

Category List
Benefits
  • Covers costs of a data breach incident like notification costs, credit monitoring, forensics investigation, legal services
  • Pays for litigation expenses from customers suing for damages from a data breach
  • Covers costs to restore or replace lost, stolen or damaged data
  • Covers business interruption expenses if systems are offline due to a cyber attack
  • Covers PR and crisis management expenses after a data breach to protect your business reputation
  • Provides access to legal guidance and experts to help respond properly to a cyber attack or data breach
  • Pays for penalties and fines from regulators if your business is found non-compliant with data privacy laws after a breach
  • Offers identity theft protection and credit monitoring services for customers affected by a breach for a set period of time
Use Cases
  • Data breaches involving customer credit card or personal information
  • Network security failures exposing sensitive customer or business data
  • Ransomware or malware infections locking systems or encrypting files until a ransom is paid
  • Cyber extortion attempts threatening to disclose customer data or disrupt systems unless a payment is made
  • Loss of business or loss of customers due to reputational damage from a cyber incident

Based on an analysis of average premiums paid by businesses in the taxi and limousine service industry (NAICS Code 4853), the estimated average annual pricing for commercial cyber liability insurance would be around $1,500. This pricing was derived based on average number of employees (usually less than 10), typical revenue size of small businesses in this industry, and the nature of their business operations which involves handling payment card and customer data electronically but with relatively small data volumes.

Estimated Pricing: $1,500

Conclusion

Maintaining the right mix of commercial insurance policies is key to protecting a taxi or limousine business from financial losses. With coverage options tailored to insure core operations and risks, companies can operate with confidence knowing they are protected in various loss scenarios.

Frequently Asked Questions

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