How To Avoid Increases to Limousine Commercial Insurance

How can a limousine business lower their annual insurance costs?

It is important to look at your company as an insurance underwriter would. This will help you understand the strengths and areas for improvement. Safety, maintenance and training are the main areas to focus on.

It shows a high level of responsibility and diligence to ensure that your vehicles are properly maintained and service records are kept. You can end up paying more for vehicle costs and insurance premiums if you don’t maintain your vehicles.

Offsetting insurance claims directly involves training drivers and staff. Valid items such as driver records verification, drug testing and mandatory safety training can show an insurance company that there is a system in place to reduce future claims. It is important to update records with the insurance company to ensure that all drivers are correctly listed in order to expedite the processing of valid claims.

How can limousine firms negotiate the best rates and lower their annual insurance costs?

A limited number of insurance companies offer coverage for limousine operators, which is one reason why rates have risen each year. According to the National Limousine Association (NLA), three out of ten limousine companies have seen their premiums rise by 25 percent or more each year since 2002. It is difficult to maintain affordable coverage in this class.

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Underwriting limousine insurance is done by specialists who create programs to address the industry’s operational issues. It is important to find a broker who is knowledgeable and can help you locate the right markets for your business. We have strong relationships with major insurance companies offering limousine insurance. This ensures that our clients can access the most comprehensive packages and the most affordable pricing.

My fleet could be increasing my premium, without me being aware.

Your insurance premium is based on the cost of providing physical damage coverage, comprehensive and collision for your vehicles. The application value is what most insurers use to calculate the premium. It is important that each vehicle’s value accurately represents the current vehicle book value. Insurers will only cover the vehicle’s Actual Cash Value if it is stolen, damaged or destroyed in an accident. The Actual Cash Value of a vehicle is the total cost to replace it, less depreciation.

You don’t need to insure the vehicle more than you can afford. You don’t want to pay too much for something you won’t get. An agent who is knowledgeable will help you understand the vehicle’s values and assist with this.

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What additional coverage is possible without increasing premiums?

The Employment Practices Liability coverage can be overlooked because it is an additional expense that does not add value to an insurance package. Companies are frequently sued for wrongful termination, discrimination against sexual/racial minorities, and harassment. All things related to employees boil down to facts. It is crucial to keep detailed records of employees in order to be able defend yourself in court against a wrongful termination case.

Many of the companies we use offer online risk management programs that enable clients to create employee manuals. Insured risks who show diligence and implement preventative measures to reduce their exposure are a delight for insurance companies. This litigious area requires the creation of employee manuals, which outline policies on employee conduct and sexual harassment.

How can Workers Compensation offset expenses?

About 50% of limousine drivers are Independent Contractors. Workers Compensation is therefore not important. It may not be economically feasible to include independent contractors in your Workers Compensation plan. However, requiring each contractor for a policy is more cost-effective.

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It is recommended that you have a Contingent liability policy, even if each contractor has its own policy. This policy will cover disputed claims and protect you from a Workers Compensation carrier audit. Independent contractors can review your 1099 file from the last three years and decide whether to audit your policy if your insurance company has paid a Workers Comp claim. Depending on the information found, this could prove to be extremely costly for the company.

How can I lower my premium by increasing my policy deductible?

Most limousine companies won’t file a claim for any small scratch or dent that may occur to the vehicle. Operators can either handle small claims internally or have them fixed by the operator. The question is: Why should I pay a high deductible? You can compare the cost of a higher and lower deductible to see the difference between claim history and cost.

You may consider raising your deductible from $2500 to $5000 if your company has a track record of avoiding losses and is not likely to file claims on your vehicles. Depending on how many vehicles you have in your fleet, the savings could be significant. Many clients came to us this year without ever considering a higher deductible. They are able to continue running their businesses thanks to the premium savings.

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What can West Valley Associates do for my company?

We can also provide advice on the above-mentioned items, as well as access to online services that offer time-saving options to manage insurance tasks. You can create employee newsletters, safety programmes, and in-house forms. Insurance reports can be expensive and time-consuming, which often leads to a lack of completion. We offer easy-to-use materials for you as an insured client.

We have the knowledge and experience to help you find the right limousine company for your needs. Each company we work for is unique and requires a thorough review of their current and past situations. This understanding allows us to tailor solutions for each client.