No matter what type of hire your taxi business provides, insurers usually offer the same four covers, listed below, that are available to other commercial motor clients:
- 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.
Writing Your Policy
When writing your taxi insurance policy, insurers will typically use their standard commercial vehicle cover as above and add on 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
- Location
Additional Covers to Consider
Due to the complex, bespoke nature of taxi 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
Exclusions
Despite providing an expansive selection of cover extensions, insurers also 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
Bespoke Is Best
This can all be rather confusing and it would be incredibly easy to get it wrong and not be properly covered. Ill-fitting taxi insurance cover will not suffice—you need a bespoke policy that addresses each and every one of your individual risks. Without a made-to-measure policy, you risk exposing your business to preventable, and possibly ruinous, risks. The taxi insurance professionals at A-Plan Parkstone have the resources and expertise to craft a perfectly fitting policy that keeps your business vehicles on the road far into the future. Keep everything in motion by calling us at: 01202 736518