Running a public or private vehicle hire can be treacherous—your drivers are transporting strangers all over the city at a rapid-fire pace. Accidents can occur at any time, threatening the safety of your employees and the viability of your business.
Ensure your business and its vehicles keep moving forward with a public and private vehicle hire insurance policy. Like personal vehicles, all hire vehicles are required by law to have insurance. Stay compliant and safeguard your business’ future by purchasing a comprehensive public and private vehicle hire policy.
What insurance does a Taxi need?
Public and private vehicle hire insurance covers legions of cars available for either kind of hire. Public hire vehicles such as taxis and hackney carriages are permitted to ply for hire. Private hire vehicles are not permitted to ply for hire and can only be booked, usually via telephone, through the operator’s office or agency.
No matter what type of hire your business provides, insurers usually offer the same four covers, listed below, that are available to other commercial motor customers.
- Act only cover is so named because it provides the minimum level of cover to satisfy the Road Traffic Act, insuring third party liability arising from the use of the vehicle ‘on a road or other public place’. Act only is rare and does not count on private premises.
- Third party only cover extends protection beyond act only cover, shielding the insured against third party liability and not restricting cover to a road or other public place. This cover is usually regarded by the industry as the minimum level of protection.
- Third party fire and theft builds upon third party only cover to include loss or damage by fire or theft.
- Comprehensive cover offers the widest breadth of cover. It insures vehicles against most types of damage, such as collisions, fires, thefts and vandalism. It is easily the most popular type of cover.
Arranging Your Taxi Insurance Policy
When arranging your public and private vehicle hire policy, insurers will typically use their standard commercial vehicle policy form with the following adjustments:
- A third party property damage limit which commonly ranges between £1 million and £5 million, although larger indemnity limits can be arranged
- Restrictions allowing only named, approved drivers
- A set maximum value applying to all vehicles with the possibility to increase this for specified vehicles
- Cover for spare parts and accessories only while attached to or with the vehicle
Even though insurers may use the same or similar forms to write policies, excess amounts will not be uniform—they can vary greatly depending on your organisation’s type of vehicle hire and level of risk. Insurers rate business’ risk exposure based on the named drivers, the amount of trade plates or a points system based on standard motor insurance factors, such as:
- Drivers’ records, ages and experience
- Type of business and vehicle(s)
- Claims experience
Additional Taxi Insurance Covers to Consider
Due to the complex, bespoke nature of public and private vehicle hire insurance, insurers offer an array of optional covers you can tack on to your main policy, including:
- Public liability covers claims made against you by members of the public who suffer injury or damage as a result of your business. Some business clients may require this level of cover before hiring you.
- Employers’ liability is required by UK law if you employ even one person.
- Building, property and contents cover is recommended if you operate your business from a centralised location. It can cover your building and any property inside.
- Accident and breakdown service
- Replacement locks
- Car hire charges
- Loss of earnings
- Personal effects
- Medical expenses
- Damage by misfuelling
- Windscreen damage
- Theft of fare money
What is not covered on Taxi Insurance?
Despite providing an expansive selection of cover extensions, insurers impose several exclusions, some of which are listed below:
- Theft of an unattended, unlocked vehicle
- Unauthorised or unsafe vehicle use
- Driving under the influence of drink or drugs
- Damage caused by ‘road rage’
- Trailer cover
How Business Insurance Service can help
Because your business’ risks are unique, ill-fitting insurance cover will not suffice—you need a bespoke policy that addresses each and every one of your business’ individual risks. Without a made-to-measure policy, you risk exposing your business to preventable, and possibly ruinous, risks.
The insurance professionals at Business Insurance Service have the resources and expertise to craft a perfectly fitting policy that keeps your business’ vehicles on the road far into the future.