LIVERY EXPOSURES

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May 7, 2023

LIVERY EXPOSURES

INTRODUCTION TO THE LIVERY EXPOSURES COURSE

Welcome to the Livery Exposures course. The purpose of this course is to arm you, the insurance adjuster and insurance agent, with the relevant and adequate knowledge on matters pertaining to Livery Exposures. At the end of this Livery Exposures course, you should be capable of understanding the basics of Livery Exposures.

Please be guided that the contents of this course should only serve as guidance and an overview of the course. All the materials covering Livery Exposures cannot be exhaustively covered under the course due to its dynamic nature. You are therefore encouraged to use supplementary materials on the topic to equip yourself further. 

The content of the course shall be as hereunder:

  1. Introduction to Livery
  2. Case studies
  1. California
  2. Arizona
  3. New York
  4. Georgia
  5. Portland
  6. Indiana
  7. Los Angeles
  8. Pennsylvania
  9. Alabama
  10. Washington DC
  11. Florida

Introduction to Livery

The Merriam-Webster dictionary in part defines Livery as “a concern offering vehicles (such as boats) for rent.” Moreover, the Free Dictionary defines livery in part as “A business that offers vehicles, such as automobiles or boats, for hire.” For-hire livery insurance, sometimes referred to as livery insurance, is a sort of commercial auto coverage for vehicles that are used by businesses that make revenue from carriage of passengers. Businesses that coincidentally transport people, such as hotels that offer a shuttle service, often don’t need for-hire livery insurance. 

The liability and physical damage protection provided by commercial auto insurance applies to vehicles that are utilized in the course of doing business. The insurance for commercial cars is purchased separately because they are often exposed to greater risk than personal automobiles. Industrial vehicles are not the only ones that require commercial auto insurance. Businesses that rely on automobiles to do errands, move tools, or transport clients, for example, may require a commercial auto policy as well. 

As aforementioned, Livery auto insurance is a sort of commercial auto insurance that is tailored to the needs of livery vehicles. A normal commercial auto policy will not cover all livery jobs for livery vehicles. Livery insurance is a sort of commercial motor insurance that is unique. It covers harm to others caused by the livery vehicles while they are being utilized by employees. It’s important to remember that livery risks differ from state to state, and this course will go over the requirements for livery insurance in different states. The cost of for-hire livery insurance is influenced by a number of factors, including the state in which the business is located, the type of vehicle used, the driver’s driving history, and the coverage requirements, age of the vehicle, size of the vehicle and the vehicle’s value e.g., operation in a suburban area may attract different premium than operation in a large city and an older make may attract different premium than a new make.

The following are the most prevalent types of livery insurance: black car/ Limousine insurance, taxi insurance, shuttle insurance, non-emergency medical transportation insurance (NEMT), party bus insurance, charter bus insurance, motorcoach insurance, and rideshare insurance. The following commercial vehicles are frequently covered by livery exposures: automobiles, pickup trucks, and SUVs, vans for cargo and vans for work, semi-trucks and box trucks, stake trucks and flatbeds, refrigerator and utility trucks, and tractor trailers and trailers.

Let us briefly look into some of these types. 

Taxis provide transportation for the general public and are usually found in the vicinity of major cities and airports, among other locations. They may be under individual owner-operators or large fleets. Traditional taxis do not normally provide pre-arranged transportation. Taxi insurance can also cover cars that do not fall under the category of a traditional taxi or black car service, such as limousines. They may refer to organizations that pre-arrange transportation but do not utilize a luxury vehicle, such as a sightseeing tour company or an airport shuttle service, among others.

A For-Hire Vehicle (FHV) that must be associated with a Black Car Base is known as a Black Car. A TLC Licensed For-Hire Base, also defined as a “central dispatch facility,” deploys all trips on a pre-arranged basis and all of the Base’s vehicles belong to franchisees of the Base or members of a cooperative that runs the Base. Black Cars are deployed on a pre-arranged basis, with non-cash payments accounting for most of passenger payments. Before affiliating with a Black Car Base, owners of Black Car vehicles pass inspection at a Taxi and Limousine Commission (TLC) facility. The majority of ridesharing or app-based firms, such as Uber, Lyft, and Via, are licensed as Black Car Bases, and drivers join these bases to provide on-demand rides. Livery enterprises that schedule appointments with precise pick-up and drop-off locations typically require black car insurance.

Limousine services just like Black car services are examples of premium transportation that has been pre-arranged. This sort of livery coverage (black car and limousine insurance) is designed to protect limos and other luxury vehicles that are used to transport passengers on a for-hire basis. There are some significant differences between black car and limousine livery and taxi livery. For example, unlike taxi services, limo and black car businesses schedule pre-arranged rides with particular pick-up and drop-off locations, and they typically drive luxury sedans or sport utility vehicles (SUV). Under the Code of Ordinances of Orlando, Florida “Prearranged Transportation means for hire services booked prior to the arrival of the passenger at the place of origin for the vehicle trip, through reservations which have been received via email, fax or telephone, internet or other electronic means.” The insurer will evaluate and rate the black car and limousine to determine whether they satisfy the insurance regulations. These could include looking at the following: make and model of the vehicle, length of the car (there may be rules on stretched automobiles), vehicle’s age (older cars may be found unsuitable) and the insured’s deductibles and minimum coverage limits (they may be forced to carry higher limits than the state minimum).

Under Georgia law, (GA Code § 40-1-151 (2014) “”Limousine” means any motor vehicle that meets the manufacturer’s specifications for a luxury limousine with a designed seating capacity for no more than ten passengers and with a minimum of five seats located behind the operator of the vehicle, and which does not have a door at the rear of the vehicle designed to allow passenger entry or exit; further, no vehicle shall be permitted to be operated both as a taxicab and a limousine”

Under the Merriam-Webster dictionary, ridesharing is “the act or practice of sharing automobile trips…especially: an arrangement in which drivers of usually privately owned vehicles who wish to offer rides and passengers who wish to obtain rides use a network (such as one accessed through an app or a website) to coordinate the sharing of individual automobile trips for which the passengers pay a fare”. Examples include the use of firms like Uber and Lyft. People who use their private automobiles for livery will require additional protections that stretches beyond ordinary auto insurance. 

Automobiles that provide non-emergency medical transportation (NEMT) are used to transport patients who require help commuting to and from medical visits. Ambulances and other emergency vehicles are not included in this type of pre-arranged transportation. 

Livery Exposures encompass the following areas: 

Auto liability: This policy protects commercial vehicles from physical damage and other liabilities. It also protects employee injuries, injuries caused by employees to others, and property damage brought about by employees when driving for both business and pleasure, regardless of whether the car is owned by the firm or the employee. The majority of taxi insurance policies are issued on a scheduled auto basis, which means that the vehicle must be covered by the policy at the time of the loss in order for coverage to be provided. It applies where the insured is held liable for an at-fault accident. The insured would be responsible for the repair of the person(s)’ vehicle they damaged, as well as the medical bills of the passengers in that vehicle(s) and the medical bills of the passengers in their own vehicle. In the event that a third party decides to file a lawsuit against the insured as a result of an automobile accident, the commercial taxi insurance coverage would also cover the legal costs. When it comes to auto liability limits, they are either issued as a Combine Single Limit or as a Split Limit. 

Collision and comprehensive coverage: This protects a car from physical damage caused by an accident, regardless of who is at blame. Many circumstances are covered by collision and comprehensive insurance, though not all. Here are some examples of when your vehicle will be covered by collision insurance:

  • The insured’s vehicle collides with or hits another vehicle.
  • A collision occurs where another vehicle collides with that of the insured.
  • When the insured collides with a stationary object (e.g., a flag post, a pole, fence, house)
  • Vehicle overturning, rolling, or flipping unintentionally

Uninsured motorist coverage: This policy protects the insured if their car is hit by someone who is either uninsured or has insufficient liability insurance. 

If the insured vehicle is damaged by an uninsured driver, this coverage will assist pay for the repairs. There are two types of uninsured motorist coverage: 

  1. In the event that the insured or their passengers are harmed in an accident caused by someone driving without insurance, the Uninsured Motorist Bodily Injury Coverage (UMBI) will assist in paying for pain and suffering, lost income, medical bills linked to the accident, and burial fees. 
  2. When an insured is involved in an accident with an uninsured driver and is not at fault, the Uninsured Motorist Property Damage Coverage (UMPD) will pay for the cost of repairing the insured’s vehicle. If the insured does not have UMPD, however, they will be required to pay for the damages to their vehicle up front. It will be necessary for the insured to go to court in order to recover compensation from the negligent driver. 

This type of insurance coverage is required in a few places, while it is optional in others. The following are the states that require each insurance product, as highlighted above: States that require uninsured motorist insurance include Connecticut, the District of Columbia, Illinois, Kansas, Maine, Maryland, Massachusetts, Minnesota, Missouri, Nebraska, New Hampshire, New Jersey, New York, North Carolina, North Dakota, Oregon, South Carolina, South Dakota, Vermont, Virginia, West Virginia, and Wisconsin. Connecticut, Maine, Maryland, Massachusetts, Minnesota, Nebraska, New Jersey, North Carolina, North Dakota, Oregon, South Dakota, Vermont, Virginia, and Wisconsin are among the states that require underinsured motorist insurance. 

General liability: A company’s general liability insurance protects it against claims of bodily injury, property damage, and personal or advertising injury. In addition, it addresses the following topics: 

  • Bodily injury coverage protects the insured if they are named in a lawsuit alleging that one suffered financial loss due to bodily injury that was inflicted by the insured’s company’s activities or products.
  • Property damage encompasses harm to the insured’s client’s property as well as damage to third-party property. 
  • Advertisement-related injuries include claims of stolen ideas, invasion of privacy, libel, defamation, and copyright infringement.  
  • Product liability protects manufacturers as well as anyone who sells products under their own label. 
  • There is Damage to rented premises that safeguards the insured’s firm from some claims for damage to rented premises occasioned by some categories of loss.
  • Whether or not the insured is not at fault for the accident, the legal fees and settlements assist them in paying for legal expenses incurred as a result of the case.

Workers’ compensation: Workers’ compensation, sometimes known as workers’ comp, is a form of business insurance that assists employees who suffer work-related injuries or illnesses in paying for medical care, lost income, and other expenses. Included in the coverage are: services in the field of rehabilitation, the costs of a lawsuit in the case of a lawsuit, death benefits. The amount of workers’ compensation that a company will pay varies and is depending on a number of criteria, including the: state(s) in which the employees are employed, annual salary and benefits, field of expertise, nature of the task performed by the staff, and previous claims history. Increased insurance costs are typically associated with physically demanding work and a history of workplace accidents. 

Some types of injuries are typically not covered by a workers’ compensation coverage. Here are a few illustrations: ones that occur as a result of an employee being under the influence of alcohol or illegal drugs, injuries that occur while the employee is not at work, if an employee’s behavior is in violation of corporate rules, and injuries sustained as a result of a fight that an employee initiated. Most states require businesses to carry workers’ compensation insurance to protect their employees. The criteria, salary, and medical benefits provided by each state can differ greatly from one another. 

Livery insurance does not provide protection against every type of loss. The following are some of the exclusions from livery insurance: theft, use that is not permitted, and driving outside the specified region (s).

Case Studies

Having looked at what Livery insurance entails, let us briefly look into those insurance requirements across the state that are anchored in law.

California

In California, we will examine the current insurance requirements of Transportation Network Companies (TNCs), as provided by the California Public Utilities Commission (CPUC).” As defined by CPUC “Transportation Network Companies (TNCs) provide prearranged transportation services for compensation using an online-enabled application or platform (such as smart phone apps) to connect drivers using their personal vehicles with passengers.” 

The requirements are as follows:

“TNC services are defined by three periods:

Period 1: App open – waiting for a match.

  • Period 1 – TNCs shall provide primary insurance in the amount of at least fifty thousand dollars ($50,000) for death and personal injury per person, one hundred thousand dollars ($100,000) for death and personal injury per incident, and thirty thousand dollars ($30,000) for property damage. TNCs may satisfy this requirement through: (a) TNC insurance maintained by the driver; (b) TNC insurance maintained by the TNC that provides coverage if a driver does not maintain the required TNC insurance, or if the driver’s TNC insurance ceases to exist or is cancelled; or (c) a combination of (a) and (b).
  • TNCs shall also maintain insurance coverage that provides excess coverage insuring the TNC and the driver in the amount of at least two hundred thousand dollars ($200,000) per occurrence to cover any liability arising from a participating driver using a vehicle in connection with a TNC’s online-enabled application or platform. TNCs may satisfy this requirement through: (a) TNC insurance maintained by the driver, if the TNC verifies that the driver’s TNC insurance covers the driver’s use of a vehicle for TNC services; (b) TNC insurance maintained by the TNC; or (c) a combination of (a) and (b).

Period 2: Match accepted – but passenger not yet picked up (i.e. driver is on his/her way to pick up the passenger).

Period 3: Passenger in the vehicle and until the passenger exits the vehicle.

  • Periods 2 and 3 – TNCs must provide primary commercial insurance in the amount of one million dollars ($1,000,000). TNCs may satisfy this requirement through: (a) TNC insurance maintained by the driver, if the TNC verifies that the driver’s TNC insurance covers the driver’s use of a vehicle for TNC services; (b) TNC insurance maintained by the TNC; or (c) a combination of (a) and (b).
  • Period 3 – TNCs shall also provide uninsured motorist coverage and underinsured motorist coverage in the amount of one million dollars ($1,000,000) during Period 3 (i.e., from the moment a passenger enters the vehicle until the passenger exits the vehicle). TNCs may satisfy this requirement through: (a) TNC insurance maintained by the driver, if the TNC verifies that the driver’s TNC insurance covers the driver’s use of a vehicle for TNC services; (b) TNC insurance maintained by the TNC; or (c) a combination of (a) and (b). The policy may also provide this coverage during any other time period, if requested by a participating driver relative to insurance maintained by the driver.

Other requirements related to TNC insurance:

TNCs shall disclose to their drivers:

  • the insurance coverage and limits of liability that the TNC provides while the driver uses a vehicle in connection with a TNC’s online-enabled application or platform.
  • that the driver’s personal automobile insurance policy will not provide coverage because the driver uses a vehicle in connection with a TNC’s online-enabled application or platform.
  • that the driver’s personal automobile insurance policy will not provide collision or comprehensive coverage for damage to the vehicle used by the driver from the moment the driver logs on to the TNC’s online-enabled application or platform to the moment the driver logs off the TNC’s online-enabled application or platform. (Public Utilities Code Section 5432)

In a claims coverage investigation, a TNC or its insurer shall cooperate with insurers that are involved in the claims coverage investigation to facilitate the exchange of information. (Public Utilities Code Section 5435)

TNC drivers shall be required to provide proof of both their personal insurance and the commercial insurance in the case of an accident. (Decision 13-09-045 Safety Requirement b)”

Arizona 

Title 28 – Transportation, AZ Rev Stat § 28-4039 (2020), 28-4039. Taxi, livery vehicle or limousine; financial responsibility

“A. Motor vehicle liability insurance for a taxi, livery vehicle or limousine may be maintained as follows:

1. During the time in which the taxi, livery vehicle or limousine driver is available to provide passenger transportation, but has not accepted a ride request and is not in the act of providing passenger transportation, primary commercial motor vehicle liability insurance coverage in the amount of twenty-five thousand dollars because of bodily injury to or death of any one person in any one accident, subject to the limit for one person, fifty thousand dollars because of bodily injury to or death of two or more persons in any one accident and twenty thousand dollars because of injury to or destruction of property of others in any one accident. This policy may be maintained by either the driver or the company.

2. After the taxi, livery vehicle or limousine driver has accepted a ride request through any communication and during the time in which the taxi, livery vehicle or limousine driver is providing passenger transportation, the taxi, livery vehicle or limousine driver or the taxi, livery vehicle or limousine company shall maintain the following insurance coverage:

(a) Primary commercial motor vehicle liability insurance in a minimum amount of two hundred fifty thousand dollars per incident. 

(b) Commercial uninsured motorist coverage in a minimum amount of two hundred fifty thousand dollars per incident.

B. A taxi, livery vehicle or limousine driver shall carry proof of insurance in the vehicle at all times while providing transportation services. If an accident occurs involving a taxi, livery vehicle or limousine, the taxi, livery vehicle or limousine driver shall provide proof of insurance to the parties involved in the accident at the time of the accident. The taxi, livery vehicle or limousine driver shall also notify the taxi, livery vehicle or limousine company of the accident.

C. In a claims coverage investigation, a taxi, livery vehicle or limousine company and any insurer providing coverage as prescribed in this section shall fully cooperate in the exchange of information and shall disclose to each other a clear description of the coverage, exclusions and limits provided under any insurance policy that each party issued or maintained.”

New York

The New York City Taxi & Limousine Commission is in charge of regulating and licensing all taxis operating in the greater New York City area. The New York City Taxi & Limousine Commission (TLC) insurance is required for private transportation drivers in New York City, unlike many other cities that do not require drivers to carry special insurance in order to drive for rideshare firms. Vehicles and drivers of a taxi or For Hire Vehicle (FHV) must be licensed by the TLC in order to carry fare-paying passengers inside the city limits, this is a requirement under the law.  One is required to hold a minimum level of liability insurance, since standard personal automobile insurance does not cover incidents when the vehicle is being used for commercially purposes.

TLC insurance only covers other people and their property; it does not cover damage to one’s own vehicle. Without additional collision insurance, a driver will be responsible for the cost of any damages to their car. Additional penalties include having one’s TLC registration cancelled for a month if one does not have the minimum liability coverage mandated by the state. 

TLC insurance covers; Property damage (PD) coverage is another name for liability insurance, protection from personal injury (PIP), and coverage for uninsured motorists (UM). Third-party protection refers to the financial protection you receive if you injure someone else or damage their property and this is what is offered by TLC. The insured is responsible for any injuries or damages to people or property caused by the driver. In the event of an accident, PIP will pay for medical bills, lost income, and rehabilitation fees. Regardless of who was at fault, the insured driver is always protected by PIP’s since it is a “no-fault” insurance. If the insured is in a car accident with a driver who doesn’t have liability insurance, UM will cover the insured.

A liability insurance of $100,000 per person, $300,000 per accident, $200,000 in personal injury protection, and $10,000 in property damage protection is required in a majority of vehicles. In addition, collision coverage can be purchased in conjunction with liability policy to make a “full coverage” package. It should be noted that collision coverage is optional, whereas liability coverage is required. 

TLC insurance payments vary depending on the case at hand. A driver’s TLC insurance premiums are computed based on: driving history, auto history, experience as a commercial driver, claims record, police history, citation history, vehicle details, driver’s age and extra driving training or safety measures. TLC has set forth a set of minimum vehicle criteria for New York City.  These are that the vehicle should be: a four-door automobile or minivan that was manufactured in 2006 or later, in good condition, void of any cosmetic damage, void of commercial branding as well, clean in the interior and exterior, and well maintained. In addition, one should get a valid certification after passing an emissions test and a TLC insurance should be sought. 

Georgia

GA Code § 40-1-193.1 (2018)- Registration of taxi services; requirements to operate taxi service

The provision provides that Each taxi service doing business or functioning in the state is required to register with the Department (Department of Public Safety). The department shall provide a license to such taxi service upon receipt of the registration form, such license shall be renewed on an annual basis by the department. The department may levy a fee for such licenses and registrations, which will not exceed $100.00 in any given instance. 

Every taxi service carrying on business or operational in the state is required to maintain a current list of all drivers employed or contracted by the taxi service in the state whether as employees or independent contractors. Despite the fact that such lists are not subject to inspection or disclosure, they must be provided for inspection by law enforcement officers and representatives of other government agencies upon request in order to ensure compliance with the title. 

All taxis in the state must:

  • Take all necessary steps to verify that each driver employed by the taxi company, whether an employee or an independent contractor, has and maintains all necessary permits and licenses in order to comply with federal and state regulations;
  • Verify that each driver employed by such taxi service, whether as an employee or as an independent contractor, possesses a current for-hire license endorsement or a current private background check certification;
  • Have a zero-tolerance policy in place for drivers who work for such a taxi service, whether they are employees or independent contractors, when it comes to the use of drugs or alcohol while on the job;
  • Get and retain personal injury and property damage liability insurance, to be used to safeguard passengers, property and the general public as well, against injury in the coverage amounts as specified by law; 
  • Adhere to the provisions of Code Section 40-8-7 that provides for driving unsafe or improperly equipped vehicle, punishment for violations, and vehicle inspection by law enforcement officer without warrant. There shall however be no vehicle inspections for vehicles used by taxi services.

Evidence of insurance or insurance payment in the amounts specified by law may be required by the department or any county, municipality, or consolidated government. Moreover, when giving or renewing a certificate of public necessity and convenience or medallion, the aforementioned evidence may be subject to verification.

Portland

16.40.130 Taxi Company Insurance Requirements.

“A.  In order to provide protection to the public, the Taxi Company shall provide levels of insurance in accordance with all requirements of Chapter 16.40.

B.  Providing Taxi Services. The Taxi Vehicle shall be covered by a general commercial liability and primary automobile insurance policy provided by the Taxi Company, the Taxi Driver, or a combination of both. Evidence of insurance requirements shall be received and approved by the City prior to a Taxi Company receiving a Taxi Company permit.

C.  Additional Insured and Notification of Policy Changes. The Taxi Company shall provide certificates of insurance naming the City of Portland and its officers, agents, and employees as an additional insured party and give at least 30 calendar days’ notice to the Director before a policy is canceled, expires, or has a reduction in coverage. Insurance coverage requirements include commercial general liability, primary commercial vehicle insurance, worker’s compensation, and employer’s liability insurance (as required by state law).

D.  Ensuring Driver and Vehicle Insurance. Taxi Companies shall be responsible for ensuring the Taxi Driver and Taxi Vehicle have appropriate insurance coverage as required by state law.

E.  Insurance Requirements. Insurance requirements of this section shall be satisfied by insurance issued by a licensed insurer or an eligible surplus lines insurer in the state of Oregon.

F.  Commercial Business Insurance. Taxi Company permit holders shall secure and maintain a commercial general liability policy reflecting limits of no less than $1 million per occurrence and $2 million aggregate for covered claims arising out of, but not limited to, bodily injury and property damage, in the course of the permit holder’s work under a PFHT Taxi permit.

G.  Automobile Insurance. All Taxi Company permit holders shall provide the City with a copy of a valid commercial auto liability policy with the following coverage:

1.  Combined single limit of not less than $500,000 per occurrence for claims arising out of, but not limited to, bodily injury and property damage incurred from the business use of any scheduled, non-owned, and hired automobile in the course of the vehicle’s use as a PFHT vehicle.

H.  Certification of Auto Insurance. Taxi Companies shall provide proof of current, valid insurance for Director certification that all affiliated Taxi Vehicles operating for such company and satisfying the minimum requirements.

I.  Insurance Limits Subject to Statutory Changes. The insurance limits are subject to statutory changes as to maximum limits of liability imposed on municipalities of the State of Oregon during the permit’s term.

J.  Subject to Approval by the City Attorney’s Office. The adequacy of insurance coverage outlined in this section is subject to the review and approval of the City Attorney’s Office.

K.  Continuous and Uninterrupted Coverage. The permit holder shall maintain continuous, uninterrupted coverage for the duration of the permit. Any lapse in insurance coverage, even if the insurance company later backdates it, is subject to a civil penalty.

L.  Insurance Rating. All insurance companies issuing policies within this section shall be rated by A.M. Best Company and carry at least a rating of A.M. Best A- or better, or meet all the requirements for Alternative to Insurance described in the Administrative Rule.” 

Moreover, the section provided for additional policy conditions. These are: 

  • If an independent contractor/owner-operator relationship exists with a permit holder, and the independent contractors/owner-operators provide services under the permit holder’s permit, then the permit holder and the City require the same insurance coverage and limits and conditions as outlined in D-H. above. The same certificate of liability and additional insured endorsement requirements will apply.
  • Alternatives to insurance, such as self-insurance, may occur only if the level of coverage and the terms, conditions, and obligations meet the same or higher requirements as found in D. – H., above and only if the public safety and well-being are not endangered thereby. The adequacy of proposed alternative insurance coverage shall be approved by the City Attorney’s Office before such alternative insurance may become effective.

Failure to comply with any provision abovementioned is a Class A violation.

Indiana 

8-2.1-19.1-8. Motor vehicle insurance requirements; proof of coverage; payment for repairs

Universal Citation: IN Code § 8-2.1-19.1-8 (2018)

“IC 8-2.1-19.1-8 Motor vehicle insurance requirements; proof of coverage; payment for repairs

     Sec. 8. (a) Not later than July 15, 2015, a TNC driver, or a TNC on the TNC driver’s behalf, shall maintain primary motor vehicle insurance that meets the following requirements:

(1) The motor vehicle insurance is issued:

(A) by an insurance company that holds a certificate of authority to do insurance business in Indiana under IC 27-1-3-20; or

(B) through a surplus lines producer licensed under IC 27-1-15.8.

(2) The language of the motor vehicle insurance policy:

(A) recognizes that the driver is a TNC driver or otherwise uses the personal vehicle to transport passengers for compensation; and

(B) covers the driver while the driver is:

(i) logged on to the TNC’s digital network; or

(ii) engaged in a prearranged ride.

(3) The motor vehicle insurance must meet the following coverage requirements while a TNC driver is logged on to the TNC’s digital network, but is not engaged in a prearranged ride:

(A) Primary motor vehicle liability insurance in an amount equal to at least:

(i) fifty thousand dollars ($50,000) per person for death and bodily injury;

(ii) one hundred thousand dollars ($100,000) per incident for death and bodily injury; and

(iii) twenty-five thousand dollars ($25,000) per incident for property damage.

(B) The insurance required by clause (A) may be provided by any of the following:

(i) Motor vehicle insurance maintained by the TNC driver.

(ii) Motor vehicle insurance maintained by the TNC.

(iii) Motor vehicle insurance maintained by any combination of persons or entities under items (i) and (ii).

(4) The motor vehicle insurance must meet the following coverage requirements while a TNC driver is engaged in a prearranged ride:

(A) Primary motor vehicle liability insurance in an amount equal to at least one million dollars ($1,000,000) per incident for death, bodily injury, and property damage.

(B) The insurance required by clause (A) may be provided by any of the following:

(i) Motor vehicle insurance maintained by the TNC driver.

(ii) Motor vehicle insurance maintained by the TNC.

(iii) Motor vehicle insurance maintained by any combination of persons or entities under items (i) and (ii).

     (b) If motor vehicle insurance maintained by a TNC driver as described in subsection (a) lapses or does not provide the required coverage:

(1) motor vehicle insurance maintained by the TNC must provide the required coverage beginning with the first dollar of a claim; and

(2) the insurance company that issues the motor vehicle insurance described in subdivision (1) has a duty to defend the claim described in subdivision (1).

     (c) Coverage under motor vehicle insurance maintained by a TNC may not be dependent on a personal motor vehicle insurance company’s first denying a claim for coverage under a personal motor vehicle insurance policy, nor may a personal motor vehicle insurance company be required to first deny a claim.

     (d) A motor vehicle insurance policy that meets the coverage requirements of subsection (a) satisfies the financial responsibility requirement of IC 9-25 while the driver of the personal vehicle is:

(1) logged on to the TNC’s digital network; or

(2) engaged in a prearranged ride.

     (e) A TNC driver shall do the following:

(1) At all times during which the TNC driver uses a personal vehicle in connection with a TNC’s digital network, carry proof of the coverage required by subsection (a).

(2) In the event of an accident, upon request, provide to directly interested parties, motor vehicle insurance companies, and investigating law enforcement officers:

(A) the proof described in subdivision (1); and

(B) a disclosure of whether the TNC driver was:

(i) logged on to the TNC’s digital network; or

(ii) engaged in a prearranged ride;

at the time of the accident.

… (f) If a TNC’s motor vehicle insurance provides comprehensive coverage or collision coverage for a claim for repair to a personal vehicle, the TNC shall direct the insurance company to make the claim payment:

(1) directly to the person that repairs the personal vehicle as payment in full for the completed repairs; or

(2) jointly to:

(A) the owner of; and

(B) any primary lienholder on;

the personal vehicle.”

Los Angeles

Los Angeles County Code, 7.80.220 – Insurance—Amounts required.

“…every applicant for a taxicab operator license shall obtain and maintain in full force and effect commercial comprehensive general liability insurance, and comprehensive auto liability insurance. 

B. The amount of the commercial comprehensive general liability insurance shall be an amount determined to be adequate by the business license commission, but in no event shall such insurance be written with a combined single limit of less than $500,000.00 per occurrence. Such insurance shall be endorsed for premises/operations and contractual liability, and shall name the county as an additional insured and shall be primary to and not contributing with any other insurance covering or maintained by the county. 

C. The amount of comprehensive auto liability insurance shall be an amount determined to be adequate by the business license commission, but in any event such insurance shall be written with a combined single limit of not less than $300,000.00 per occurrence, or limits of not less than $100,000.00 per person/$300,000.00 per accident/$50,000.00 property damage or any combination of commercial insurance which provides not less than the equivalent limits. Such insurance may include a property damage deductible or self-insured retention not greater than $2,500.00 per occurrence. 

D. Such insurance shall be provided by insurer(s) satisfactory to the county risk manager, chief administrative office. Evidence of such insurance shall be attached to the application and shall indicate the highest rated operating area in which the applicant seeks authorization to conduct business. Such evidence of insurance shall provide that the tax collector is to be given written notice of at least 30 days in advance of any modification or termination of such insurance. 

E. The limits of such insurance required shall be subject to review by the chief administrative officer who shall present any recommendation for adjustment to the business license commission.”

Pennsylvania

Pennsylvania Code-§ 1065.1. Limousine insurance.

“ (a)  Insurance requirements generally. Except as provided in subsection (b), a limousine certificate holder shall comply with the relevant portions of Chapter 1025 (relating to insurance required), including the filing of Form E and Form K documents. 

 (b)  Limousine insurance required. 

   (1)  A regulated party may not engage in limousine service and the certificate of public convenience will not be issued, or remain in force, except as provided in §  1025.4 (relating to applications to self-insure) until there has been filed with and approved by the Authority a certificate of insurance by an insurer authorized to do business in this Commonwealth, to provide for the payment of valid accident claims against the insured for bodily injury to or the death of a person, or the loss of or damage to property of others resulting from the operation, maintenance or use of a limousine in the insured authorized service. 

   (2)  The liability insurance maintained by a limousine certificate holder shall be in an amount at least $1,500,000 to cover liability for bodily injury, death or property damage incurred in an accident arising from authorized service. Except as to the required amount of coverage, these benefits must conform to 75 Pa.C.S. Chapter 17 (relating to Motor Vehicle Financial Responsibility Law). First party coverage of the limousine driver of limousines must meet the requirements in 75 Pa.C.S. §  1711 (relating to required benefits). 

   (3)  The certificate holder’s loss history with a current or former insurer shall be released to the Authority within 2 business days of a request by the Authority. The certificate holder shall authorize any release required by the insurer to facilitate the timely delivery of the loss history to the Authority. 

   (4)  The Authority may direct insurers to file proof of insurance both electronically and in hard copy. 

   (5)  The limits in paragraph (2) do not include the insurance of cargo. 

   (6)  The requirements in § 1025.3 (relating to insurance required) do not apply to limousines.”

Alabama

Code of Ordinances, City of Madison, Alabama Sec. 10-159. – Definitions.

‘…Driver means a person operating a taxicab or limousine upon the public streets of the city. 

Limousine means a motor vehicle used in the business of transporting passengers for hire in the city, not operated on a fixed route; provided, however, the term “limousine” shall not apply to any motor vehicle which is: 

(1) Classified as a taxicab as defined in this section; 

(2) Used exclusively by or under a written agreement with a hotel, motel, airport, hospital, club or other such entity for the transportation of its members, guests, patients or clients; or 

(3) Operated as a bus under a franchise granted by the city. 

…Owner means a person owning or controlling one or more taxicabs or limousines and driving or causing any such vehicle to be driven upon the public streets for hire. 

Passenger means a person other than the driver who is an occupant of a taxicab or limousine and, for the purpose of this article, such person shall be presumed to be a passenger for hire. 

… Taxicab means a motor vehicle used in the business of transporting passengers for compensation in the city and not operated on a fixed route; provided, however, that the term “taxicab” shall not apply to any motor vehicle which is: 

(1) Classified as a limousine as defined in this section; 

(2) Used exclusively by or under a written agreement with a hotel, motel, airport, hospital, club or other such entity for the transportation of its members, guests, patients or clients; or 

(3) Operated as a bus under a franchise granted by the city. 

…  Sec. 10-160. – Taxicab or limousine license.

(a) It shall be unlawful for any owner of any taxicab or limousine to operate or to permit the same to be operated upon the public streets of the city without first having obtained, and having then in force a taxicab license or limousine license, therefor, as the case may be, as herein provided. 

(b) Every person who desires a taxicab or limousine license shall pay a filing fee in an amount as established by the council, from time to time, and make a written application for a certificate of public convenience and necessity to the city council upon forms to be furnished by the city clerk, verified under oath stating: 

(1) The name and address of the applicant, specifying, in the case of any unincorporated association, partnership or firm, the names and addresses of each member thereof, and the quantum of interest of each member; and in the case of any corporation, the names and addresses of each stockholder, officer and director thereof with the number of shares of stock owned or held by each of them. 

(2) A complete statement by the applicant, specifying the amounts of all unpaid judgments against the applicant, each member, officer or director, and the nature of the transaction or acts giving rise to said judgments and the name and location of the court in which, and the date on which, each was entered. 

(3) All misdemeanors or felonies of which the applicant and any member thereof, if an unincorporated association, partnership or firm, and any officer or director, if a corporation, has been convicted, stating the names and locations of the court in which, and the date on which, such convictions were held and the penalties imposed therefor. 

(4) The location of any and all depots and terminals proposed to be used by the applicant. 

(5) The number of vehicles the applicant wishes to operate. 

(6) A description of the insignia, trade name and proposed color scheme for each taxi. Any trade name must contain the word “taxicab,” “taxi,” or “cab.” 

(7) Any other relevant information which the city clerk may require. 

(c) No taxicab or limousine license shall be granted until the city council shall have determined by resolution that the public convenience and necessity requires the proposed taxicab or limousine service; provided, however, that no such finding shall be necessary for the issuance of a license to the holder of a license on the effective date of the ordinance from which this article is derived for the same number of taxicabs or limousines that such licensee held and had in operation on the date of adoption of the ordinance from which this article is derived; provided further that such prior license shall not be exempt from all other and further provisions of this article or from the making of an application for a taxicab or limousine license as herein provided. 

(d) If the city council shall find that further taxicab or limousine service is required by public convenience and necessity and from the statements contained in the application for a taxicab or limousine license that the applicant is qualified and able to perform such public transportation and to conform with the provisions of this article, then the council shall adopt a resolution that the public convenience and necessity require the proposed taxi or limousine service and shall instruct the city clerk upon the certification of each limousine, or, in the case of taxicabs, at least two taxicabs proposed to be operated by the applicant pursuant to subsections (a) and (b) of this section, and the compliance by the applicant of the provisions of subsection (j) of this section, to issue upon payment of a fee established by the city privilege license code a license stating the name and address of the applicant, the date of the issuance thereof, such qualifications and limitations which the council may wish to impose, the number of vehicles the applicant is authorized to operate, the number assigned to each such vehicle, and at the same time the city clerk shall issue for each vehicle certified hereunder, a card bearing the words “certified taxicab” or “certified limousine,” as the case may be, and an assigned number; otherwise such application shall be denied. Before making any finding as to whether public convenience and necessity justify the issuance of a taxicab or limousine license or the authorization of additional taxicabs or limousines under an existing license, the council shall cause to be published in a newspaper of general circulation in the city, a notice stating that such application has been made, the number of vehicles for which such application has been made, and that a public hearing shall be held to determine whether public convenience and necessity requires such license or additional taxicabs or limousines on the date fixed therein, which date must be not less than seven days after the date of such publication. 

(e) In making the findings of public convenience and necessity required by subsection (c) of this section, the city council shall take into consideration the number of taxicabs and limousines already in operation in the city, whether existing transportation is adequate to meet the public need, the probable effect of additional taxicabs or limousines on local traffic conditions and the character, experience and responsibility of the applicant and the adequacy of the service which the applicant proposes to give. 

(f) In order to better control and regulate the taxicab operations within the city, the city council shall not make a finding that the public convenience and necessity justifies the issuance of a taxicab license unless the application therefor shall provide for the licensing of at least two taxicabs. The intent being that no license for taxicab service shall be granted to any person unless such person operates two or more taxicabs. 

(g) Every person licensed under this section who shall desire to add to the number of taxicabs or limousines he is then operating shall pay a filing fee in an amount as established by the council, from time to time, and make a written application to the city council upon forms to be furnished by the city clerk, verified under oath stating: 

(1) The name and address of the applicant; 

(2) A statement of whether any information furnished on the original application has changed, and if so, indicating the changes; 

(3) A description of each such additional taxicab or limousine, including the make, model, passenger seating capacity, year of manufacturer, state license number, motor number, and name and address of the owner; and 

(4) Any other relevant information which the city clerk may require. 

(h) The procedure outlined in subsections (c) through (e) of this section, to determine whether a taxicab or limousine license shall be granted shall be followed in determining whether a person shall add to the number of taxicabs or limousines he is then operating. 

(i) Any license issued under this section may be renewed annually for additional periods of one year, each from the date of expiration upon the certification under oath that there have been no changes in the information submitted as required by subsection (b) of this section, and upon the approval of the city clerk pursuant to subsection (d) of this section, except as to the finding by the city council of public convenience and necessity, provided, however, that no license shall be renewed after March 1 each year without reapplying therefor as herein provided and a finding by the city clerk that public convenience and necessity justify the issuance of such a license. 

(j) Each applicant shall, before the issuance to him of a license under this section, file with the city clerk: 

(1) A description of each motor vehicle to be operated by the applicant pursuant to the license, including the make, model, passenger seating capacity, year of manufacturer, state license number, the motor number thereof, and the name and address of the owner; and 

(2) A certificate of insurance that the applicant and each motor vehicle licensed is insured against public liability in the minimum limits of $20,000.00 for personal injury to any one person in any one accident and $40,000.00 for personal injury to two or more people in any one accident and $20,000.00 for property damage in any one accident, which insurance policy and certificate shall provide that the city shall be given at least 30 days prior notice of cancellation. Such policy shall not be cancelled or suspended either by the insured or the insurer unless at least 30 days notice in writing of the intention to cancel or suspend policy has been filed with the city clerk, and upon such suspension or cancellation of insurance, the taxicab or limousine license of said insured shall stand suspended until such time as an acceptable policy and certificate of insurance shall be on file with the city clerk. 

(k) Failure to comply with subsection (j) of this section within 60 days after the adoption of a resolution by the city council of public convenience and necessity as required by subsection (c) of this section shall be deemed to be abandonment of the application and license in respect to the number of motor vehicles not so reported and not so insured pursuant to subsection (i) of this section. It shall be unlawful and cause for suspension or revocation of the applicable application and license to operate a fewer number of taxicabs than such application and license authorizes; provided, however, a taxicab shall not be deemed to be out of operation for the purposes of this subsection for a period of 60 days from the date such taxicab failed to be certified as herein provided by the chief of police. 

(l) Any change in the information furnished in the application for a taxicab or limousine license pursuant to this article must be reported to the city clerk in writing within ten days and failure to so report shall be cause for suspension or revocation of the license. 

(m) The taxicab or limousine license issued hereunder shall not be transferrable.”

Washington DC

Code of the District of Columbia- § 50–301.14. Insurance.

“(a) Each owner of a taxicab operated in the District shall maintain a bond or policy of liability insurance covering accident risks for payment of judgments and legal claims arising out of the ownership, maintenance, or operation of a taxicab consistent with the provisions of the Compulsory/No Fault Motor Vehicle Insurance Act of 1982 Amendments Act of 1985 [D.C. Code § 31-2401 et seq.].

(b) The bond or policy of liability insurance required by this section shall provide minimum coverage by a surety or insurer on any 1 judgment of $10,000 for bodily injuries or death, and $5,000 for damage to property, and $20,000 for bodily injury or death, and $5,000 for damage to property for all judgments arising out of the same subject of action, to be apportioned ratably among creditors according to the amount of their respective rights, until these requirements are superseded by the Compulsory/No Fault Motor Vehicle Insurance Act of 1982 Amendments Act of 1985 [D.C. Code § 31-2401 et seq.].

(c) The liability of a surety or insurer on an indemnity or policy of liability issued under this section shall be absolute for damages adjudged against an insured.

(d) Each owner of a taxicab operated in the District shall file with the Office of Client Services of the Department of For-Hire Vehicles evidence that a bond or policy of liability insurance meeting the requirements of this section is in force for the owner’s taxicab. The Office of Client Services of the Department of For-Hire Vehicles shall maintain accurate and current information on all insured taxicabs and shall maintain accurate and current records on all taxicabs for which insurance or a bond has been cancelled.

(e) Policies of liability insurance shall be issued only by companies authorized by the Commissioner to do business in the District, and all sureties bonding taxicabs operated in the District shall be approved by the Commissioner. No insurer or surety shall engage in the business of insuring or bonding taxicabs unless a certificate of approval is issued by the Commissioner to engage in such a business, which approval shall be given upon a finding by the Commissioner that the company is qualified and its management capable of conducting such a business in the public interest.

(f) The Commissioner shall issue reasonable rules in furtherance of the protection of the public governing:

(1) The business and practices of insurers and sureties indemnifying accident risks of taxicabs operated in the District, including the expenses of management, administration, and acquisition of business;

(2) The writing of insurance and the making of bonds for the coverage of accident risks of taxicabs; and

(3) The rate and rate structure of insurance for coverage of the accident risks of taxicabs operated in the District.

(g) The Commissioner may, after a hearing, withdraw the certificate of approval of any insurer or surety violating a provision of this section or any rule issued by the Commissioner pursuant to the authority of this subchapter.

(h) No bond or policy of insurance required by this subchapter may be cancelled unless not less than 20 days notice of cancellation or termination has been provided to the insured in writing, and notice of intent to cancel has been filed with the Commissioner and the Office of Client Services of the Department of For-Hire Vehicles not less than 20 days prior to the date of cancellation or termination, except that cancellation for nonpayment of premium shall require not less than 5 days written notice to the insured, and the filing of notice of intent to cancel with the Commissioner and the Office of Client Services of the Department of For-Hire Vehicles not less than 5 days prior to the date of cancellation.”

Florida

Florida Statutes, Title XXIII, Chapter 324, 324.031 Manner of proving financial responsibility.

“The owner or operator of a taxicab, limousine, jitney, or any other for-hire passenger transportation vehicle may prove financial responsibility by providing satisfactory evidence of holding a motor vehicle liability policy as defined in s. 324.021(8) or s. 324.151, which policy is issued by an insurance carrier which is a member of the Florida Insurance Guaranty Association. The operator or owner of any other vehicle may prove his or her financial responsibility by:

(1) Furnishing satisfactory evidence of holding a motor vehicle liability policy as defined in ss. 324.021(8) and 324.151;

(2) Furnishing a certificate of self-insurance showing a deposit of cash in accordance with s. 324.161; or

(3) Furnishing a certificate of self-insurance issued by the department in accordance with s. 324.171.

Any person, including any firm, partnership, association, corporation, or other person, other than a natural person, electing to use the method of proof specified in subsection (2) shall furnish a certificate of deposit equal to the number of vehicles owned times $30,000, to a maximum of $120,000; in addition, any such person, other than a natural person, shall maintain insurance providing coverage in excess of limits of $10,000/20,000/10,000 or $30,000 combined single limits, and such excess insurance shall provide minimum limits of $125,000/250,000/50,000 or $300,000 combined single limits. These increased limits shall not affect the requirements for proving financial responsibility under s. 324.032(1).”

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