Many of the limousine insurance coverages which focus on the vehicle(s) mirror those in the private passenger sector. But frequently, the amount of coverage, or coverage limits, are considerably higher.

According to Matt Mushorn, senior underwriter for Lancer’s Limo Direct insurance program, “the amount (or limit) purchased of Comprehensive Automobile Liability for a limousine company, ranges up to $5 million combined single limit per occurrence for: bodily injury, property damage, and, for larger fleets, non-owned & hired car; and employers non-ownership coverages. A wide range of deductibles can be selected to help reduce premiums for the liability insurance coverage. PIP (Personal Injury Protection), UM (Uninsured Motorist) and UIM (Underinsured Motorist) coverage limits are mandated by the individual states in which the company operates its vehicles,” added Mushorn.

“Automobile Physical Damage coverage, commonly referred to as collision insurance, covers the vehicle itself up to a specific value (e.g. $25,000),” explained Mushorn. Coverage is also provided for fire, theft and combined additional coverages. “Automobile Physical Damage coverage is usually offered with a minimum deductible of $500 per vehicle,” he added.

Not directly related to the vehicle, but a key coverage nevertheless, is Commercial General Liability insurance. This provides the limousine company protection from:

• Bodily Injury and Property Damage;
• Contractual Liability (written contracts only); and
• Personal Injury

Finally, limousine company owners with storage and/or shop facilities can purchase Garage Liability and/or Garage Keepers Legal Liability. Both are available at a variety of limits and deductibles.

Your first step should be to determine the minimum requirements as regulated by your State, County and local government. Then follow these tips to lower your costs:

• Find an insurance broker that specializes in the limousine industry
• Check with your local association for group insurance discounts
• Consider higher deductibles to reduce your premiums
• Check your credit history and correct inaccuracies
• Include a business narrative with your submission to an insurance carrier
• Hire chauffeurs with a clean safety record
• Show you have chauffeur training and retraining programs in place
• Remember, most insurance companies will not insure older vehicles or vehicles that are not QVM or CMC certified
• Ask about discounts for anti-lock brakes, air bags and other safety features

Here is a list of the better known Insurance Agencies that work with limousine companies. Not all agents offer coverage in all 50 States. Don't shop on price alone. There are a lot of other factors that need to be considered, from limits and type of coverage to financial strength of the insurance company. If it sounds too good, it's probably not a good deal. You can find the rating of your potential insurance company from A.M. Best. If you know a company that should be on our list please email us their contact information.