The Importance of Public Liability Insurance for Taxi Drivers

Aug 21

Many business owners underestimate the advantages of having public liability insurance until after they need it. This type of insurance provides protection for business owners should problems, damages or injuries arise due to negligent practices or errors made on the part of the business.

In many cases, business owners who are obliged to shell out compensation to pay for injury claims will have to face significant amounts should their customer or client file a legitimate claim. This can create a tremendous burden on the finances of the individual and the business, particularly if the problem persists or becomes repetitive. With public liability insurance, the business receives a good measure of protection for a complex set of problems. In the event a claim does occur, the burden of paying for damages is taken off the busines owner’s hands and managed by the insurance company.

Who needs public liability insurance?
Public liability insurance is designed for business owners and entities that have regular transactions with consumers and clients. With direct interaction between the business and the public, there is always a risk that damage or loss may occur to the product or service. The client or consumer can, of course, file a claim for compensation from the business owner. They are legally allowed to do so as a way to protect their rights as end users. With public liability insurance, business owners have a legal and financial buffer against such claims.

Some of the business owners and operators who will benefit from public liability insurance are taxi drivers since they offer a direct service to the public and could, through their actions, cause harm, damage, or threats to the life and well-being of pedestrians. A taxi driver, for example, could become involved in a vehicle accident with a pedestrian or another vehicle either through negligence or an unintentional act. The pedestrian rights would put the taxi driver (or the company he works for) in a position to pay for the cost of hospitalization, medications, and damages that result from the act or accident. If the driver is backed by insurance, nevertheless, the expenses would be taken care of by the insurance firm.

Getting the coverage you need
To get the most public liability insurance coverage at the best value, shop for quotes and compare offers from a number of insurance companies through There are different coverage types designed to provide protection for different business needs, so be sure to check what is being offered to get the best protection possible. Make sure to compare value based on coverage versus price, along with other add-ons. If you find the cost of liability insurance for taxi drivers is rather expensive, consider doing the following to reduce your premium:

– reduce the number of drivers covered
– compare the average cost of insurance in the location where your business operates
– the type of premium paid for the type of vehicle/s you have (some vehicles are charged a higher insurance premium than others)
– consider the advantages of getting a secured place for parking your taxis when not in use (proof of increased security for the vehicle lowers the insurance premium)

On the flipside if you are ever in need to claim you might consider discussing your accident at work claims by first4lawyers – you can call them for free and 0800 567 7866.

Sample Public Liability Insurance Quote for Taxi Driver
To give you an idea about how much premium you can expect, here is a sample quote:

A taxi driver who has been driving for 9 years and has a two-year-old driving business with a clean record (no past or current claims) will receive £57.32 annually from MMA Insurance.

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