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What Types of Insurance Does a Limo Business Need?

What Types of Insurance Does a Limo Business Need?

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What Types of Insurance Does a Limo Business Need?

Limo Insurance Quotes

Costs for business insurance can vary greatly, and getting insurance quotes from multiple companies is recommended in order to get the best pricing.

Coverwallet and Hiscox offer easy business insurance quotes at affordable prices.

What Types of Insurance Does a Limo Business Need?

Limo services provide customers with a luxury, chauffeured car ride experience to various venues, such as formal events, business meetings, and travel destinations. Not only is the car ride luxurious, but also safely gets customers from point A to point B. However, limo businesses encounter several risks while driving customers between destinations and need adequate insurance to protect them from financial losses if an accident occurs.

Related: How to start a limo business

What Are Some Risks for a Limo Business?

Limo businesses come across several risks while conducting business. Some of the risks include incidents such as

  • Car accidents
  • Employee injuries
  • Robberies
  • Loss of a customer’s belongings

Car Accidents

Arguably, the most significant risk for limo businesses is car accidents. This is because limo companies conduct most of their business on the road, and drivers experience challenges that make driving safely tricky. For example, they must maneuver the long vehicles through traffic, narrow drives, and with a load of passengers (who sometimes may be unruly). In addition, car accidents put the business at risk of lawsuits if an at-fault accident causes bodily injury or property damage.

Some of the more common reasons that accidents or collisions may occur include the following:

  • Operating and parking a longer than usual vehicle
  • Driving in unfamiliar locations
  • Driving under time constraints (i.e., making airport connections on time)
  • Distracted driving (i.e., phones, GPS systems, loud passengers)
  • Driver fatigue (i.e., drivers may need to work at odd hours)
  • Traffic

Hazards such as distracted driving and driver fatigue may be more common for limo businesses as their services may be required at irregular or late hours or with large, loud groups. Additionally, due to the length of the car, wide-angle turns can be more challenging—as can lane changes. 

Limos, being specialty vehicles, are costlier to repair. Further, some limos may have customizations that make repairs even more expensive. Damage can also happen due to theft or robbery, which is a risk for limo businesses since limos are often targeted for theft and robbery. 

Employee Injuries

Employees of the limo business may encounter several workplace hazards, with the most apparent risk being injured in a car accident. Limo drivers have the highest risk of injuries; however, office employees may also come across injuries, such as slips, trips, and falls.

Aside from car accident injuries, limo drivers also face other hazards. For example, employees may suffer back, shoulder, or joint injuries from lifting heavy objects in and out of the limo, such as luggage. In addition, rowdy passengers are a physical safety concern, more so if the passenger is intoxicated. An employee may also be physically attacked during a robbery.

Unfortunately, limo drivers may have an increased risk of assault or robbery because they usually work alone and at odd hours. Additionally, they handle the cash for each trip, which could mean drivers may have an excess amount of money in the vehicle at the end of the shift—further becoming a target for a robbery.


Certainly, robberies are a hazard to employee safety, but they also harm the business’s financial wellness. A robbery deprives the business of well-earned income and sets back the business’s revenue. Robberies can also lead to vehicle damage, which intensifies the financial loss. Robberies may occur during late or odd hours, in unfamiliar or hard-to-navigate areas (such as dead-end roads or cul-de-sacs), or at the end of a shift when cash is built up.

Employee dishonesty is another form of theft that is a concern for limo businesses. For example, an employee handling the cash may be tempted to steal or shortchange the business. Additionally, employee theft can occur if an employee falsifies transactions or overcharges for fares.

Loss of a Customer’s Belongings 

Another risk is losing a customer’s belongings while they are left in the business’s care. For example, customers may leave their luggage, bags, purses, or coats in the limo during events. If the customer’s items are lost or damaged during that time, the limo business may be held responsible for the loss or damage.

For instance, a customer’s items may be lost or damaged in car accidents, robberies, or thefts. Additionally, items left behind or forgotten may become a liability concern for the limo business.


What Types of Insurance Policies Should a Limo Business Consider?

A limo business potentially needs several insurance policies to adequately cover its risks. As such, some of the important policies that a limo business should consider include the following:

  • Commercial auto insurance
  • Workers’ compensation insurance
  • Crime insurance
  • Inland marine insurance

Commercial Auto Insurance

A commercial automobile insurance policy, also referred to as livery insurance, provides two main coverages. First, it covers liability. Liability includes bodily injury and property damage claims resulting from at-fault accidents. Second, the policy covers physical damage. This coverage specifically covers business-owned vehicles for damage and loss.

At-fault accidents can result in extensive lawsuits against the limo business. The costs of medical bills, ambulance rides, and vehicle damage can quickly add up. However, liability insurance covers the limo business for accidents caused by employees or agents of the business. If an accident occurs, the liability insurance covers 

  • Third-party medical costs
  • Third-party property damage repairs
  • Legal defense costs
  • Settlements

Physical damage coverage protects business-owned vehicles from damage caused by collisions and property damage liability. Non-collision events, otherwise known as comprehensive coverage, includes coverage for perils such as the following:

  • Wind or hail
  • Falling objects
  • Glass breakage
  • Vandalism
  • Malicious mischief 
  • Theft

Workers’ Compensation Insurance

A workers’ compensation insurance policy protects the business from employee injury claims. For example, a limo driver injured in a car accident may need to take time off from work to recover. Therefore, not only does the employee accumulate medical bills, but they also may lose income while they cannot work. 

Fortunately, a workers’ compensation policy is helpful in these scenarios and covers expenses following an accident. Some of the important coverages include

  • Medical expenses
  • Lost wages
  • Ongoing rehabilitation care
  • Disability income
  • Funeral expenses

A workers’ compensation policy also protects the limo business from potential lawsuits. So, while this insurance aids injured employees, it also benefits the limo business.

Crime Insurance

A crime insurance policy covers the limo business’s cash from perils such as robberies, theft, fraud, forgery, and internal theft. Usually, cash has limited coverage or is excluded from other business property insurance policies. However, crime insurance offers beneficial coverage for cash, protecting the business from tough financial losses.

Inland Marine Insurance

An inland marine insurance policy covers items that move over land. More specifically, bailee coverage is a type of inland marine insurance that covers items belonging to a customer while in the care of the business. Bailee insurance coverage is an essential policy to consider as it protects the business from liability claims and covers the costs of lost or damaged items.

How Much Does Insurance Cost for a Limo Business?

Ultimately, limo insurance costs are variable. They depend on the limo business’s needs based on risk exposure and coverage amounts. For example, a limo business with customized limos will need higher coverage amounts to insure the heightened value of the limo in the event of a loss. Therefore, their insurance rates will increase as the coverage amounts increase. Similarly, a limo business with a greater level of risk may have an increased insurance cost compared to a limo business with lower risk.

Some factors that influence the cost of limousine insurance include aspects such as 
– The condition and value of fleet
– Any limo customization or specialty features
– The number of employees on the payroll
– Employee training, licensing, and driver history
– The amount of cash held by drivers
– The estimated value of customer items kept in the business’s care
– Any past or current lawsuits or insurance claims

Overall, the best way to determine your limo insurance costs is to contact multiple companies for quotes. Then, with multiple quotes, you can pick a policy package with the best coverages at the most competitive price.

What Types of Insurance Does a Limo Business Need?

What Types of Insurance Does a Limo Business Need?

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