Taxis which are looking to retain or expand their business by having a local authority contract will need to ensure they have the correct and adequate insurance cover. They will also need to ensure that both the vehicle and the driver meet the criteria and terms and conditions of the contract.
The majority of local authorities will not grant contracts to taxi companies who only have Third party insurance cover. Although this level of insurance meets the legal minimum requirements for driving a taxi on the public highways it does do provide Public liability cover.
Public Liability insurance cover protects the insured person and their vehicle should they be involved in an incident or accident in which a member of the general public is harmed, injured or worse case scenario- killed.
Many insurance expects are expecting a sharp rise in the number of claims being made by the public over the next few years. While it may appear that the UK has adopted the American 'blame culture', with people hoping to benefit from making insurance claims against people and their businesses, those that have legitimate cause for claiming will be actively encouraged to do so from accident claims solicitors.
Local authorities will also ensure that all taxi drivers have obtained an enhanced Criminal Records to check to help protect the public against potential harm.
The vehicle itself will also have to meet the safety criteria laid down by the local authorities. This applies to all taxis wishing to operate legitimately. Should a taxi be stopped for a routine check and be found to have faults it will be prevented from operating until the faults or defects have been addressed.
With competition fierce among taxi companies obtaining and maintaining a local authority badge is essential. Having the correct insurance is also necessary.
When looking to buy or renew insurance cover it would be wise to choose insurance companies who specialise in taxi insurance. These insurers will be able to provide advice and guidance as to which type of cover is required to keep you in business.
As with most insurance the premiums can initially appear high, however there are ways in which the insurance companies are able to offer discounts to help reduce the costs.
Many reputable insurance companies will also offer different payment methods to help spread the cost over the year. Additional savings can be made if you purchase a policy online.
You should not be fooled into believing that all taxi insurance quotations will be either appropriate or adequate to meet your business needs.
Seek the advice from insurance companies and above all make sure you fully understand the terms and conditions of the policy. Read the small print and if you have any questions or are unsure of any jargon phrases phone the insurance company and ask for explanations and clarification.
Any reputable taxi insurance company will be more than happy to provide explanations for you, more especially those which specialise in taxi insurance and have dedicated consultants who are experts within this particular field of insurance.
Author Resource:-
Staveley Head are a leading UK insurance broker for taxi insurance
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