Public Liability, do I need it?
Public liability has always been a grey area for taxi drivers:
- do i need it?
- have i got it?
- what is it?
- what does it cover?
These are questions private/ public hire operators often ask. This section will provide you with all this information and show you theadvantages of having such a policy.
Normal insurance
Private/Public hire policies usually have unlimited passenger liability for all occupants whilst the taxi is being driven so everyone is protected in an accident. Public Liability covers possible claims resulting from your negligence and most Local Authorities for instance will insist on you having this kind of policy if you are undertaking any school or council contract.
Public Liability
This provides you the operator cover for any claim that can be made against you by a customer for any injury that arises to the them through your negligence. The sort of things that lead to claims include:
- a passenger leaves you vehicle and you run over their foot
- a disabled passenger and he falls from his wheelchair getting into the cab
- a passenger tripping over a loose mat while leaving your cab and injuring themselves
The potential for a claim is very high as you are in constant contact with the general public.
Some taxi insurance companies will now include this cover on request for no charge or a very small premium. If it is not included, you can purchase the cover separately for a very low cost , the cover you can purchase usually starts at £2 Million but this can be increased right up to £10 Million if you require.
Employers Liability
Operators who have even just 1 employee require this cover by law. Not having this cover means you are breaking the law and exposing your business to a giant risk – these claims can run into millions of pounds.
You cover for yourself against any employee injured whilst carrying out his duties. This covers normal road traffic accidents and incidents like an injury while changing a tyre.
This cover is relatively inexpensive and is great value for money because if somebody does try to claim against you, the claim canbankrupt your business unless you have the right cover.
Protected No Claims – What is it?
Many Insurers will now allow you to protect your No Claims Bonus even though the vehicle is being used for taxi uses.
What is the advantages of protected no claims?
The protection will usually allow two fault accidents to be committed within a 5 year period by the proposer or any driver named or entitled to drive on the policy without the no claims bonus being reduced. This is extremely beneficial to drivers that have built 6 years No Claims or more, as it is a way of ensuring that as long as they do not exceed the limit of (usually) 2 claims with a period of five years their bonus will remain at maximum.
Each company does have a different scale as to how many claims they will allow and over what timescale.
Am I a Chauffeur?
Chauffeurs can often qualify for major discounts off the normal private hire taxi rates, but these are subject to certain criteria.
The criteria is listed below and are broken into two sections driver and vehicle to qualify for the discounts you will have to meet both criteria.
Drivers
Most companies insist on all drivers being dressed in smartly either in a suit or a uniform.
All appointments must be pre-booked and invoiced with no cash changing hands at the end of the journey.
Vehicles
The vehicle will usually have to be from the top end of the market ie Mercedes, BMW, Jaguar, Lexus, etc and will have to usually no more than 5 years old. The’re exceptions to this rule for example they will cover Rolls Royces and Bentleys up to 10 years old.
If you meet the criteria you can usually qualify for a discount sometimes as much as 40% off the price of normal taxi insurance.
The rules must be met and if you purchase chauffeur insurance and carry out normal private hire work you will find your policy is NULL & VOID.
