Why Does Cab Driver Insurance Cost More Than Usual Policies?

Naturally, cab driver insurance is going to be higher than for other forms of motor insurance because you are responsible for the safety of the people that you carry, and so fall into a high risk category. This means that besides needing to cover the usual categories of everyday insurance, you need to be covered for business use and Public Liability.

If you want to get the best deal for your cab driver insurance, and let's face it, who doesn't, then try and avoid high street or online brokers and try to deal directly with the insurance companies themselves. This may be more time consuming because the brokers have access to lots of different companies, but they also want their cut and this will be added to your costs.

Naturally, if you haven't got the time for this, and you are happy to pay for the service, a broker is a great way of getting your insurance sorted out, and they will also be aware of things that would benefit you that perhaps you are not.

There are different categories of cab driver insurance and you will need to be in the right one to be covered: Private Hire Taxi Insurance; Public Hire Taxi Insurance, and for companies that have a few cabs, Taxi Fleet Insurance.

As with any motor policy, taxi insurance can be comprehensive, third party fire and theft, and third party only. No claims bonus discounts can be applied to the policy and there are usually discounts given for drivers with previous fleet experience. It is also possible to get cover for breakdowns in the same way as usual policies do, and because the chances are that a car that is used far more than normal is likely to breakdown more often, this can be a useful option.

Many insurance companies will give you a choice of flexible payment options over periods of three, six and twelve months, though there will be a charge for this service.

Many car manufacturers supply their own taxi insurance that is certainly worth looking at. Their motive is obviously to generate driver loyalty and so they can offer favourable terms.

Even though it may cost more to invest in cab driver insurance, don't forget that you have the same tools available to offset the cost as normal drivers, such as increasing the excess on your policy, and using your no-claims bonus to discount your insurance because of your reputation as an excellent driver.

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The Benefits Of Taxi Insurance

When it comes to owning your own taxi company or simply taxi, it is always a good idea to invest in taxi insurance. This type of insurance is not exactly like car insurance but can be purchased from your car insurance company. There are multiple benefits when it comes to purchasing taxi insurance, all of which make purchasing this type of insurance a definite must.

To understand this type of policy you first need to understand what makes it different than car insurance on a personal, private vehicle. There are several different types of typical car insurance, the two most popular are full coverage and liability. With full coverage you gain protection from just about anything that may happen to your car including damage that is done to the interior and aesthetics of the car. With liability you simply are covered if you harm another driver or yourself in an accident. Taxi insurance is a bit of both of these types of insurance. While it does not cover each and every thing that may happen to your taxi, it does cover quite a few eventualities. This type of insurance covers injury to the passenger, accidents, and damage incurred by the driver generally.

One of the best reasons to get insurance is potential damage that can be inflicted by the passenger or driver. Though accidents are not wholly uncommon in taxis, the most common damage to your vehicle is likely to be done by the passengers. This could include tears in upholstery, spilled drinks, general wear and tear, and other damages that could be incurred during a transaction. Taxi insurance helps you protect your property so that you can continue to run your business effectively.

This type of policy also covers injury to your drivers and passengers. While this is not the most common claim on this type of insurance, it is certainly one of the most important. Taxi insurance helps you protect your passengers and your drivers in the case of an accident or some other type of injury that could potentially be the end of a taxi business. Still another benefit is coverage in the instance of vandalism. Taxi insurance can help you set things straight if your car is damaged while on duty or parked. When it comes to choosing the right insurance you need to make sure that you understand what the policy offers and that it is within your means to keep up your premiums so that both you and your customers are safe.

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Is Your LEED Certified Building Adequately Insured?

As a building developer/owner you invest a lot of money in building a LEED certified project. Has your broker discussed the potential gaps in a traditional property insurance policy versus a policy enhanced to include the 'green' endorsement now offered by many carriers?

Most people involved with the real estate industry are aware of LEED certified status and what is required to meet that status. What you may not be contemplating is how the status will impact your insurance program, both short and long-term on a given project or building. There maybe an assumption that because a LEED certified building is typically built to meet their very rigorous standards, insurers would provide some credit or reduction in premium for a LEED certified building. Unfortunately, because the insurance industry uses historical statistics to forecast losses and develop premiums, most do not feel there is enough reliable data on LEED certified buildings to provide any form of credit or reduction.

We have seen increasing pressure to build or convert existing properties into LEED certified buildings. As owners and developers you should have some perspective on how insurance companies are responding to this growing issue and what it can mean in the event of a property loss. In the last few years most property carriers have developed either a 'green' policy form or endorsement to address items not included in the traditional policy form.

At a minimum your broker should be discussing the following items with you as part of any regular discussions. The traditional property policy is designed to rebuild the structure as it existed prior to a loss using traditional construction methods. The challenge in dealing with a LEED certified building is that some of the materials and construction methods are more expensive than in a traditional construction project.

Insurance adjusters may not agree to pay for the more expensive materials and methods unless the policy has been amended appropriately. These additional costs can include:

The increased construction cost of using 'green' products or LEED certified materials or construction methods. The additional cost of Energy Star appliances, lighting and electrical systems, low-flow plumbing fixtures and other energy efficient plumbing systems and sensors. The cost of using environmentally friendly materials for carpets and floor coverings, furniture, cabinets and interior paints and primers The cost of replacing vegetative roofs. The cost to use materials that are sustainable such as bamboo, eucalyptus or materials containing recycled content. The additional cost of disposing of damaged materials in an environmentally friendly and sustainable way. The increased professional fees to hire a LEED Accredited Professional to oversee the reconstruction of a damaged LEED building and engineering or other consultants to oversee repairs and other building systems commissioning expenses.

The insurance companies are all trying to address two issues, 1) rebuilding an existing LEED certified building to the same or higher standards and 2) rebuilding an existing building to upgrade to LEED status. To address these increased exposures some insurance companies are offering a specific sublimit, which is adjustable depending on the amount of premium you wish to pay and also depending on the limit of coverage you opt to purchase. Other companies are only agreeing to offer a 'green' endorsement if a building has LEED certification status prior to a loss.

We are also working with pollution carriers to develop endorsements to address the LEED certification issue within their policies as well. We anticipate in 2009 most pollution carriers will include a quote to add their 'green' endorsement to their proposals for both owner's and contractor's pollution liability.

With the exception of one carrier both the property and pollution underwriters are being required to charge additional premium to add this coverage to their existing policies.

While the insurance industry is generally taking the position that a LEED-certified building is positive both from a social and ecological standpoint, they do not have enough firm data to allow them to adjust their rate structure at this time. We anticipate this will change over time and we will begin to see some premium reductions, depending on how construction defect claims specifically related to LEED certified buildings develop over time. The insurance industry continues to be very interested in this topic and has tried to find creative ways to meet the challenges faced by these increased costs associated with a LEED certified building.

For your next renewal, we suggest you discuss and work with your carriers to address these issues. Parker, Smith & Feek can help. Our Real Estate Practice has 'green' experience and is eager to help you navigate through these special exposures.

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Lead Paint: How The EPA's New RRP Rules Affect Your Liability

If you're a contractor in the US, you already know about the Renovation, Repair and Paint Rules issued by the Environmental Protection Agency in 2010. But many contractors may not have considered how these rules may affect their business's liability. We believe that these laws increase contractor's exposure to Pollution Liability losses.

About Lead Paint Hazards

Lead paint was outlawed in 1978 after it was found to be harmful, especially to small children. It can cause hypertension, high blood pressure and even brain damage. As you can imagine, if somebody is held liable for a child getting brain damaged due to lead paint, the financial loss will likely be substantial. Summary of Lead Paint Rules

1. Be Certified - The new rules require that all renovation contractors working in residential homes, schools or child care facilities built before 1978 must have at least one certified employee on the job at all times. The EPA provides information on their website on how to get certified.

2. Notification - The new rules also require contractors to provide notification to homeowners and child care facilities about the dangers of lead paint dust. A standard notification issued by the EPA is available on their website as well as a standard form that contractors can use to document that notice has been given to the homeowner or child care facility.

3. Follow Containment Guidelines - Anytime paint is disturbed in pre-1978 buildings, contractors must contain the work area, minimize dust and clean-up thoroughly according to the EPA's Regulations on Residential Property Renovation at 40 CFR 745, Subpart E.

Definition of Negligence

Negligence is what a prudent person would NOT do in the same situation. Contractors who are negligent can be held liable for damages resulting from such negligence.

Conclusion

Due to the fact that these new regulations went into effect less than 2 years ago, there is really not any case history to show exactly how they will affect your liability. However, based on the definition of negligence, it is reasonable to assume that a contractor could be considered negligent if he fails to get certified, notify the owner or properly contain the lead dust. Due to the fact that negligence can result in tort liability, we believe that these new rules significantly increase liability exposures for renovation, repair and painting contractors.

What Can You Do?

Don't assume that your Commercial General Liability (CGL) policy will cover you for losses related to lead paint. Most likely it will not. Lead paint dust is a pollutant and should be covered by a Commercial Pollution Liability (CPL) policy. If you are a remodeling or painting contractor, contact your broker and make sure that you have the coverage you need. There are several new CPL programs that have emerged in the last couple of years and policies have become more affordable than you might expect.

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Employer's Liability Insurance: Are You Protecting Your Business?

Do you employ other staff? Do you deal with hazardous substances?

You may want to review your employer's liability insurance.

Recently, a Gemma Taylor, working as a waitress in a County Durham hotel, accidentally opened a bottle of industrial cleaner; suffering corneal abrasion and burns to her face and chest. It is said that she had accidentally knocked the bottle whilst searching for tissue in an unlit store cupboard. Ms Taylor maintains that the bottle top was not secure and that the labels were turned to the wall, making the hazard less obvious.

Any business dealing with hazardous chemicals will usually know that to abide by appropriate health and safety legislation, such substances must be stored safely and secure, and so the procedures for implementing this must be clear.

The owners of the hotel, Whitworth Hall County Park Ltd, state that there are adequate procedures in place and that they should be followed

An investigation later showed that there were indeed such procedures in place for storing chemicals but they were improperly managed.

As a result, the holding company was later fined £8700 and £3229 in costs. Thus illustrating that employer's liability insurance is in fact a worthwhile investment. It is better to have it and not need it, than to need it and be found wanting.

Joanna Waller, a spokesperson for Durham County Council stated that: "This case should serve as a warning to other businesses... it is not enough for employers to simply have risk assessments and procedures written down - they must also make sure their staff are aware of them and follow them properly"

John Hurrell, chief executive of Airmic, has advocated the importance of public liability insurance, commenting that it "is almost inconceivable" that a company would not require such cover.

As such, it is unwise to cut back on employer's liability insurance when experiencing financial difficulties. When experiencing such difficulty, the costs of such a case could be ruinous and much more expensive than the cost of a comprehensive liability insurance policy.

The reason why employer's liability is so important is because of its scope. The legal definition of an 'employee' is very wide, and this makes a business much more vulnerable than its owner may realise. There have been cases in the past where family members have been doing favours for their kin, only to receive injuries and later make a claim. As we have seen, it only takes one bottle of cleaner without a top on to cost a business over £10,000 and so it would be ill advised for a business to disregard the cover that would protect them in such an event.

It is also important that a business prevents such accidents occurring by closely monitoring their health and safety practices so that those responsible for enforcing them can be disciplined where standards are not being met.

If you have any concerns about your employer's liability insurance cover, consult with an expert business insurance broker.

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Is the Cost of Classic Lorry Insurance Going Up?

The easy answer is that it's not just classic lorry insurance that is going up, but absolutely everything that concerns the transport industry. The ever increasing fuel costs and rising inflation are doing nothing to help, and there are many hauliers who are really struggling to stay on the road.

There are some things that can be done to redress this situation and to make sure that classic lorry insurance is kept to a minimum. The first, and most obvious, thing to do is to make sure that you are not over-insured because that really is money down the drain. If you are not sure, there are many reputable brokers who are professional, highly experienced and who specialize in classic lorry insurance.

If you have more than three lorries ask about a fleet policy rather than insuring them individually. Very often, this will save money straight away.

Another way of reducing insurance costs is to make sure that your drivers undergo regular training so that they are aware of both economical ways of driving, and how to drive more safely. Good insurance companies will be able to give you details of these kinds of courses and you will find that once they have been completed your insurance premiums should come down in response.

Another strategy for helping to reduce classic lorry insurance costs is to fit a telemetric system to your lorries. These monitor driving styles and have proved themselves to be instrumental when it comes to safer driving, more economical driving, and also as an effective way of settling disputed insurance claims. There are many insurance companies that encourage the use of these systems and will reduce premiums if they are used.

If you want to make sure that you don't lose your no claims bonus and see your insurance premiums escalate if you have to make a claim, then consider paying a little extra to protect it. It does mean that you have to pay a little more but in the long term, it could save you a fortune.

It's not just classic lorry insurance that it is possible to save money on; there are other areas, too. Many lorry drivers stick decorations to the fronts of their trucks but this can actually increase fuel consumption. Consider having them removed and replacing them with more aerodynamic accessories, which should make significant savings for you in the future. With petrol prices rising, it's never been more important to shop around.

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