Owning your own limousine is an excellent way to increase the value of – and profits from – your business. Whether you use your limo as a specialty, high-end car for hire to business professionals or you rent it out for high school dates and prom nights, the car is a big asset to your company.
Limousines are expensive vehicles that require a large investment of capital. If the limo is damaged in an auto accident, can your company afford to pay for the repairs? If the vehicle is destroyed completely, or stolen, can your company pay to replace it? These are just a few of the many reasons you need to carry commercial auto insurance on your company’s limousine. Here are the main types of insurance you’ll need:
- Liability Insurance – Liability insurance is mandated by law in each state of the nation. This coverage is there to protect other people from suffering losses when your limousine causes an auto accident. This insurance also protects your company from costly lawsuits and litigation if your limo is at fault in an accident. Liability consists of two parts: Payments for physical injuries to people and payments for damages caused to other people’s property.
- Bodily Injury – Bodily injury insurance pays the bills when people get hurt in an auto accident. If your limo is the cause of an auto accident, the bodily injury portion of your liability policy pays for the medical bills that result from the accident. Bodily injury pays for a wide variety of things. Ambulatory care and transport are paid with it for example, as is emergency room care and treatment. If accident victims must stay in the hospital for recovery, bodily injury pays the hospital bills. It also pays for physical therapy and other recuperation treatments that are deemed necessary. Aside from medical expenses, bodily injury will also pay accident victims for pain and suffering, lost wages, and funeral expenses of someone who is fatally injured.
- Property Damage – The second area covered by your liability policy is for property damages. When auto accidents happen, generally one or more vehicles sustain damages that must be repaired. Property damage coverage pays to have those repairs done so that the vehicles or other property is put back to the shape it was in before the auto accident occurred.
When you set up liability insurance coverage for your limousine you will choose policy maximum limits and an insurance deductible. The policy limits dictate the maximum amount of benefits your policy will pay for on a per accident basis. The deductible is the amount your company pays on a per accident basis. When minor accidents occur that do not cost more than your deductible for bodily injuries or property damages, you pay the bill instead of your insurance policy paying it.