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Public Liability Insurance for Taxi Drivers

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Public liability insurance – what is it and do I need it?

Setting up a taxi business is not just as simple as buying a fleet of vehicles and going on your way – it requires careful planning to ensure that your business can run as smoothly as possible.

So on top of acquiring an operator’s licence, vehicles, an office and a base station, you’ll also need to take out a comprehensive insurance policy to protect your business. Find the right policy and you’ll rest assured knowing your business is safeguarded against all eventualities – because you never know what might happen.

What is public liability insurance?

Taxi businesses revolve around dealing with members of the public so public liability insurance is absolutely essential. It’s a key part of any taxi insurance policy, which will ensure you won’t lose out financially if anything happens.

It’s important because it covers your business in case a member of the public suffers loss or injury as a result of your taxi firm and makes a compensation claim. And with members of the public riding in your taxis all day, it would be reckless to operate without adequate insurance. Even if you employ safe, reliable drivers, you never know what might happen when they’re out on the road exposed to the driving of other drivers.

Do I need it?

If you’re running a taxi business, however big or small, the answer is yes, you do need public liability insurance. Extras like this may hike up the price of your premiums but don’t be tempted to scrimp on insurance to save pennies. Taxi insurance is more expensive than conventional car insurance policies for a reason – taxi drivers drive more miles than the average motorist which increases the statistical risk of having an accident. So if you’re carrying passengers for commercial gain, you must take out public liability insurance.

How to get public liability insurance

If you’re new to operating your own taxi business – or you’d like an extra bit of advice – your best bet is to speak to an insurance broker. Insurance brokers offer policies from a range of insurance providers, so they can individually assess your situation and find the right policy for you.

They’ll look at each aspect of your business and decide what level of cover is right for you – but whatever happens, all insurance brokers will tell you that public liability insurance is an essential part of your policy.

You may also want to consider the extras that you can add to your policy. For example, if you employ drivers, you’ll be obligated by law to take out employer’s liability insurance. This protects your employees in case they are injured at work and can actually be taken out with public liability insurance as part of your taxi insurance policy.


by David Hambridge