If you own a for-hire vehicle business in New York, then you need to purchase commercial vehicle insurance. Both Taxi and Limousine Commission (TLC) and livery policies are designed for transportation vehicles, but they differ based on the type of service provided. While TLC insurance is used for taxi cabs and limos, livery insurance is required for pre-arranged black car services. Regardless of which category your service falls into, it's vital that you carry the correct style of coverage.
Why Maintaining Livery & TLC Insurance Is Important
The most important aspect of your insurance policy is the financial protection that it offers. If one of your drivers is involved in an accident and they're deemed liable, the coverage will assist with the repairs or replacement of the damaged vehicles, as well as medical costs for drivers and occupants. Without such coverage, you'd be responsible for paying for these costs out of pocket.
Aside from financial protection, you should maintain livery or TLC insurance because it's the law. All of the regulations on for-hire vehicles, including taxis, limos, and liveries, are mandated by the New York City Taxi & Limousine Commission.
The minimum liability coverage required varies from for-hire vehicle type and potential occupancy. For instance, a black car that holds between one and eight passengers will need a livery insurance policy that provides a minimum of $100,000 liability coverage for each occupant and $200,000 in Personal Injury Protection. Minimum coverage amounts for limos, on the other hand, start at $500,000 per person.
If you fail to maintain the required level of coverage, the Department of Motor Vehicles (DMV) will revoke your vehicle's registration. You'll be required to turn your plates over to the DMV for 30 days, and they won't be reinstated after the month-long period until that you prove that you have all required coverage. Not only is this an inconvenience, but you also risk losing thousands of dollars in earnings while the vehicle is out of commission.
If you own a taxi, limo, or livery car service, make sure that you're protected by turning to P.D.H. Insurance Brokerage. With over 30 years of industry experience, this Valley Stream, NY, insurance broker offers a thorough understanding of the coverage requirements and restrictions that commercial drivers face. The skilled professionals will work with you to determine which livery or TLC insurance policy meets your specific needs. Request your free quote today by calling (516) 561-5227 or by filling out their online contact form.