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Thread: Limo Insurance rates in VA

  1. #1
    Junior Member
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    Aug 2013
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    FAIRFAX, VA
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    Default Limo Insurance rates in VA

    First Hello to all.

    I am a newbie here and just looking to start.

    I would like to know what is the average cost of Limo Insurance in Virginia ( specially Northern Virginia area). and even I would like to know what are the types of Insurance one would need to operate Limos in VA (again Northern VA)
    I am hearing " Motor Carrier Bodily Injury and Property Damage Liability insurance" as VA DMV needs this via Form E from the insurance companies.
    does this cover both Vehicle insurance as well? If not what other type(s) of insurance do I need to operate the limo business.
    sorry this question might have been asked but I would like to know this in VA area.
    So requesting some one in the VA area to please share their experience or respond.

    Thank you very much in advance.

    EDL

  2. #2
    Senior Member
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    Jan 2006
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    Lou., Ky & all other states
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    Default

    Welsom to the forum.

    In regards to your question about cost, there is no easy answer unless you specify what particular types of policies you desire and what you want/expect them to provide coverage for. A new start up falls in the higher end of the risk spectrum and therefore at teh higher end of the cost spectrum than operators that have been operating for five years. A new start operation, with quality drivers (30+ years old; three years of professional experience; clean MVR) is going to assure themselves best possible pricing than new ops that do not.

    In regards to your question about what types of policies you need, to be legal with the state and possibly feds, they only require you to maintain auto liability insurance and Virginia will require a Surety bond. However, the liability exposures you have as a company are not all protected by the auto liability policy. You very well may wish to insure your vehicles against damage or total loss; your General Liability exposures would be covered under a GL policy; Workers Compensation; Employment Practicies Liability; Pollution; etc. You have many different exposures that you could face potential liability from, you will need to determine which ones are most likely, and of those, which ones you would rather have help to insure with an insurance policy and which of those exposures you will act as your own insurance company.

    For the most part, a new start is going to buy Commercial Auto Liability & Physical Damage, General Liability, and Workers Compensation policies and as the operation grows as well as their liability exposures additional policies are purchased.

  3. #3
    Junior Member
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    Aug 2013
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    FAIRFAX, VA
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    Default

    Hi Phill,

    Thank you for taking time to answer my questions and suggesting your thoughts.

    I have the Surety bond taken care and I can maintain it as long as the VA DMV wants or mandates. currently it is to be maintained for at least 3 years.

    On the commercial Liability Insurance, I am getting different views, some it is just General Liability Insurance to start with and once I purchase the vehicles then I should get the coverage for Auto liability and other liability insurance that I mentioned (Workmen compensation etc.)

    One more question, here are the Drivers/ Chauffeurs hired on 1099 or as an employee? which makes more sense? what is the best practice?

    Thank again,

    Venkata /EDL

  4. #4
    Senior Member
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    Jan 2006
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    Default

    My pleasure Venkata. You will have to consult the State of Virginia to determine how your chauffeurs should be classified. It is most likely that they would be considered employees rather than Independent Contractors.

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