Why do taxi businesses need insurance?
States and municipalities require auto insurance for taxis and other for-hire vehicles. Other types of taxi insurance cover data breaches, accidental damage to a passenger's property, ride delays, and miscommunications.
Find affordable coverage
With Insureon, you can save money on commercial taxi insurance by comparing quotes from top-rated providers.
Fill out our easy online application to get free quotes and advice from a licensed agent.
What types of insurance do you need for taxis?
These insurance policies cover common risks faced by taxi companies.
General liability insurance
This policy covers third-party personal injuries, such as a customer who trips and suffers an injury getting out of your cab. It's often the first policy purchased by a small business.
- Customer bodily injuries
- Customer property damage
- Slander and other advertising injuries
Business owner's policy
A business owner's policy, or BOP, is a cost-effective way for small taxi companies to buy general liability coverage and commercial property insurance together.
- Accidents that harm customers
- Stolen or damaged business property
- Business interruption insurance
Commercial auto insurance
This policy covers financial losses from auto accidents involving your business's taxis. Most states require this coverage for vehicles owned by a business.
- Auto accident injuries
- Damaged or destroyed property
- Vehicle theft and vandalism
Workers' compensation insurance
Most states require workers' comp for taxi companies that have employees. It also covers work-related medical costs for sole proprietors, which health insurance can deny.
- Employee medical expenses
- Disability benefits
- Workplace injury lawsuits
Cyber insurance
This policy helps taxi services recover financially from a data breach or cyberattack. It's recommended for any business that stores email addresses or other customer information.
- Data breach investigations
- Fraud monitoring services
- Customer notification costs
Errors and omissions insurance
E&O insurance covers legal defense costs when a taxi business is sued for failing to pick up a passenger or other professional negligence. It's also called professional liability insurance.
- Late or undelivered rides
- Breach of contract
- Mistakes in communication
How much does taxi insurance cost?
A taxi driver who works independently can expect to pay less for insurance than a taxi company with several employees.
Factors that affect the cost of business insurance include:
- Type of service, such as public hire or private hire taxi
- The value of your taxis and other property
- Business revenue
- Number of employees
- Employee driving records
- Types of insurance purchased
- Policy limits and deductibles
- Claims history
How do I get taxi insurance?
It's easy to get taxi insurance coverage and other kinds of livery insurance if you have your business information on hand. Our application will ask for basic facts about your small business, such as revenue and number of employees. You can buy a policy online and get a certificate of insurance with Insureon in three easy steps:
- Complete a free online application.
- Compare taxi insurance quotes and choose a policy.
- Pay for your policy and download a certificate.
Insureon's licensed agents work with top-rated U.S. providers to find insurance solutions that fit your taxi company's needs, whether you're a sole proprietor or hire employees. Get peace of mind knowing your business has the right protection for its risks.
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FAQs about taxi cab insurance
What are the taxi cab insurance requirements in my state?
In almost every state, vehicles owned by a business must carry commercial auto insurance. The amount of coverage must meet your state's minimum requirements for auto liability insurance.
Taxi services and other for-hire transportation companies, such as Uber and Lyft, may have other requirements based on the laws in your state, county, or other locality. Typically, this depends on:
- Where you operate
- The type of vehicle
- The vehicle's seating capacity
For example, the New York City Taxi & Limousine Commission (TLC) mandates different amounts of vehicle insurance for black cars, luxury limos, and other for-hire vehicles, depending on the number of passengers they can hold.
How do I find affordable taxi insurance?
Small businesses with low risks don't have to pay a lot for insurance. There are several ways to secure cheap taxi insurance:
- Shop around for quotes. Insurance companies offer different pricing for the same kinds of insurance. Fill out our easy online application to compare quotes from several trusted providers before buying a policy.
- Select a higher deductible. Policies with higher deductibles cost less, but you need to pay the full deductible amount before you can benefit from your coverage.
- Choose lower policy limits. Policies with lower limits also cost less. However, your insurer will only cover claims up to the policy limit, so make sure it's an amount that could cover a potential lawsuit.
- Pay the annual premiums. Providers often let you choose between paying your premiums on a monthly or yearly basis, with a discount when you pay the annual amount in full.
- Skip coverage options you don't need. For example, you can save money on car insurance by opting out of comprehensive coverage, which covers physical damage from falling branches, collisions with deer, and similar incidents.
Though it's tempting to buy the cheapest policy possible, keep in mind that it can cost you more in the long run. Without adequate coverage, you could find yourself paying for a lawsuit out of pocket, which could end up bankrupting your business.