10 Things to Know About Taxis, Limos & Fleets

May 2, 2016



  1. “Hiring and driver turnover are critical to review as they relate closely to the management of the business and loss control stability. Encourage your insured to develop hiring guidelines and to follow them. Hiring and keeping good drivers are the most important steps in maintaining good loss control.” —Erin K. O’Leary, vice president, Shelly, Middlebrooks & O’Leary Inc. Services Inc.
  2. “Hiring practices requiring three or more years’ taxi experience lead to lower insurance rates and higher trust ratings.” —Robert Hill, chief underwriting officer, Blackmoor Agency
  3. “It is important to keep in mind that public auto operations that cross a state line are federally regulated, much like truckers.” —Jeremy Allgeier, vice president/transportation manager, Bolton & Co. (Louisville, Ky.)
  4. “The highest seating capacity of all the vehicles owned and/or operated by the named insured will determine what level of financial responsibility is required by the Federal Motor Carrier Safety Administration (FMCSA). This means that a fleet with 10 sedans, and one limo bus would require a policy limit of $5 million CSL. If that same fleet did not have the limo bus, the requirement is only $1.5 million CSL.” —Jeremy Allgeier, vice president/transportation manager, Bolton & Co. (Louisville, Ky.)
  5. “There is a substantial difference in premium between the two liability limits, listed above. A sharp producer can help the insured structure their operations so that they can have one policy for $5 million CSL covering only the limo bus, and a different policy for $1.5 million CSL covering the sedans from the prior example. This can save the insured a substantial amount of money, while still making sure that they are adhering to federal guidelines.” —Jeremy Allgeier, vice president/transportation manager, Bolton & Co. (Louisville, Ky.)
  6. “Fewer new drivers entering the driver pool continues to make finding good drivers more difficult. A good driver selection, training, and retention plan is critical for fleet operators seeking to emphasize safety and minimize insurance cost.” —Aaron V. Nowland, president, W.F. Clayton & Associates
  7. “Fast, accurate accident reporting practices lead to lower rate claims and insurance premiums.” —Robert Hill, chief underwriting officer, Blackmoor Agency
  8. “The underwriter needs the following information for the past four years when reviewing a fleet account: expiring premium, current valued loss runs, the historical number of units operated per year including the projected growth for the next 12 months and revenue per year.” —Erin K. O’Leary, vice president, Shelly, Middlebrooks & O’Leary Inc.
  9. Regularly reviewing loss run information can have many benefits: The opportunity for early identification of frequency issues; diagnosing trends in causes of loss; spotting potential problem drivers; and helping to prepare for experience-related changes in renewal pricing, are a few.—Aaron V. Nowland, president, W.F. Clayton & Associates LLC
  10. The two largest demographics affecting the public transportation industry over the next decade will be the baby boomers and millennials. —Jeremy Allgeier, vice president/transportation manager, Bolton & Co. (Louisville, Ky.)

Topics Talent

Was this article valuable?

Here are more articles you may enjoy.

From This Issue

Insurance Journal

Insurance Journal Magazine