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Company insurance is intended to safeguard the financial assets of a business owner and is a vital investment for a children’s taxi service.


This article will discuss the primary insurance coverage for kids taxi services, general liability insurance, as well as additional policies that are appropriate for this industry.

Kids Taxi Services General Liability Insurance

Every firm, regardless of sector, has risks that should be insured. General liability insurance is the most frequent and comprehensive form of coverage that company owners purchase.

General liability insurance covers the following risks:

Physical harm

Damage to property

Medical expenses

Legal defence and decision

Personal and commercial harm

While general liability insurance is not legally needed for companies, operating without it is exceedingly dangerous. If your company is sued, you might face costs in the hundreds of thousands of dollars (or more). The only way to avoid this sort of catastrophe from destroying your organisation is to have an adequate general liability insurance coverage in place to assist pay for these losses.


Example 1: It takes your driver longer than expected to pick up his rider. The youngster is bullied at the rendezvous location while waiting, resulting in bodily damage. The child’s parents are suing your company, saying that the event would not have occurred if the driver had arrived on time. If the situation goes to trial, your general liability insurance should cover the child’s medical expenditures as well as your legal fees.

Example 2: A local rival is suing, saying that your new marketing campaign portrays their company negatively, leading them to lose business. Your attorney’s expenses and any damages awarded by the court should be covered by a general liability insurance.

Example 3: You want to grow your company and have filed for a loan to buy another car. The bank requires proof of liability insurance as part of the loan requirements. These standards should be met by your general liability insurance.

Example 4: A potential new employee stumbles on the welcome mat and fractures his wrist while visiting your workplace for an interview. He is suing you for medical costs and missed earnings while out of work, which should be covered by your general liability coverage.

Of course, this is not an entire list of risks covered by a general liability insurance policy, and certain situations may result in a specific peril not being covered. To minimise coverage gaps, it’s always better to speak with your agent about the terms of your policy.

General Liability Insurance Cost

In America, children’s taxi services typically pay between $300 and $800 per year for $1 million in general liability insurance.

The cost of your coverage will be determined by a number of variables. Among them are your:



Employees’ number

Per-occurrence restriction

The overall aggregate limit

You may be able to get general liability insurance at a lower cost if you buy it as part of a business owner’s policy (BOP) rather than as a separate policy. A business interruption policy (BOP) is a more complete option that covers numerous types of coverage, such as business interruption and property insurance.

Other Types of Coverage Required for Kids Taxi Services

While general liability insurance is the most crucial, there are various different types of coverage to be aware of. Other sorts of insurance that all kids cab services should have include:

Insurance for Commercial Vehicles

Accidents involving business-related activities are not covered by a personal vehicle coverage. To avoid gaps in coverage, you should insure automobiles used in your children’s taxi business with a commercial auto insurance policy.

If you are in an accident, this coverage will cover the cost of repairing your car as well as medical bills, liability claims, and lost equipment. While the state enforces the bare minimum insurance coverage, company owners should consider safeguarding their assets by acquiring more than the bare minimum.

Depending on the provider, commercial vehicle insurance may be purchased as a separate policy or as part of a business owner’s policy (BOP).

Insurance for Workers’ Compensation

Workers compensation insurance is required by the state for firms with payroll employees. Employees who are harmed on the job should be covered by this. Workers’ compensation compensates for their medical expenditures as well as a portion of their lost income while they are out of work due to the injury. If an employee sues you as a result of the occurrence, it will pay your legal bills as well as any court-awarded damages.

Workers compensation insurance is often acquired as a separate policy.

Umbrella Liability Insurance for Businesses

As a company owner in this field, you are exposed to several liability risks that are beyond your control. In the event of a liability lawsuit, your general liability coverage is your first line of defence. Once you’ve exhausted the policy’s limitations, the claimant may hold you financially liable. A business umbrella insurance provides an additional layer of security by picking up where a general liability policy stops off.

Coverage Options for Some Kids Taxi Services

In addition to the insurance listed above, your kids taxi service may need other forms of coverage based on particular features of your business. Some of them may not apply to you, so be sure to ask your agent whether policies are appropriate for your company.

Insurance for Home-Based Businesses

Many company owners in this field conduct their everyday activities from their home. However, a homeowner’s insurance excludes commercial property and losses, possibly leaving you unprotected. If a loss happens, home-based business insurance replaces the gaps in your coverage.

Check with your homes insurance carrier to see whether an extension of coverage is available for an extra fee. If not, home-based business insurance may be purchased as part of a company owners policy (BOP).

Insurance for Data Breach

Like other contemporary businesses, technology is an essential aspect of your company’s day-to-day operations. This exposes you to online hackers and assaults that are not covered by a general liability coverage. Data breach insurance protects your company from cyber assaults. This coverage, also known as Cyber Attack insurance, assists in covering losses resulting from a data breach that results in stolen user data.

Additional Security Measures for Your Company

Although investing in company insurance is simple (and necessary), it should not be your first line of defence. Yes, insurance will reimburse your company for cash losses incurred as a result of an occurrence, but it is much preferable to avoid losses altogether.

With this in mind, here are a few steps you can take to better secure your company:

Make use of legally binding contracts and other business agreements. (We provide free templates for several of the most often used legal forms.)

To safeguard your personal assets, form a limited liability company (LLC) or a corporation. (To discover how to incorporate an LLC or company in your state, see our step-by-step tutorials.)

Keep your company licences up to date.

Streamline the internal procedures of your company. This will eliminate unneeded variables from routine activities and establish a secure, consistent environment in which to do business.

If your company is an LLC, you should check into LLC insurance.