Minicab firms – Are your premises and vehicles properly insured?

Running a minicab firm can mean bigger profits than when you simply work on your own. But it is also a much larger commitment and will take more time to manage. You’re not just responsible for your own actions and the upkeep of a single vehicle. Instead, you are potentially liable for the actions of a large number of drivers. You may also have a significant financial investment in multiple vehicles. Add to this your business premises and equipment and it’s easy to see why you need robust taxi fleet insurance.


When you’re busy driving and organising wages, it can be easy to overlook insurance. But that could cost you more in both the short- and long-term. So, to help you find the right minicab firm insurance at the best price, we’ve written this guide just for you.


First, why do I need insurance?

Depending on the size of your firm and where you operate, some types of insurance are a legal requirement. Other types of insurance may not be required by law, but are considered essential to help your business to thrive.

What types of insurance are considered essential for minicab firms?


Vehicle insurance

  • Legally you must hold at least third-party insurance to drive on the road. This must be a specific taxi insurance policy: if you only hold standard car insurance it will be void. If you are discovered driving with no insurance you can be fined, get points on your driving licence, and have your taxi permit removed.

Public liability insurance

  • Depending on the local authority where you operate, public liability insurance may be a condition of your licence. This insurance covers legal costs if a member of the public makes a claim against you for injury or damage to property. It will pay for solicitor fees to defend your case as well as any compensation awarded. You should check with your local authority to see if it is something you must have.

Employer’s liability insurance

  • If you employ any members of staff you’ll need employer’s liability insurance. Members of staff include part-time or seasonal drivers or office staff. If you don’t have employer’s liability insurance, you can be fined. There are some exceptions to the rule, for example, if it is a family business and you only employ close family members. Find out more about if you need it blog.

What other types of cover should minicab firms consider?


Taxi insurance

Your vehicles are the lifeblood of your business and the one thing that you couldn’t do without. Therefore it’s good business sense to ensure that your fleet is properly insured at all times. If you’ve got a large number of vehicles then it may be hard to keep track of all the different policies. You could keep a computerised database so that you know when they’re up for renewal and other relevant details. Alternatively, take the hassle away and save cash with a taxi fleet insurance policy. It’s designed for firms running three or more vehicles. It is a cost-effective and simple way to get peace of mind that you’re covered. And the good news is that the more vehicles you insure the cheaper the policy is compared to individual policies.


Insuring your premises and equipment

After your fleet and your drivers, the premises that you operate out of are the next most important thing to insure. If you own the building either outright or with a mortgage then you should make sure that you will be covered for the full rebuild amount in the event of damage caused by fire, floods, and other accidents or deliberate acts. Remember, if it is a building that is listed or of unusual construction, there may be additional insurance implications to consider. If you rent the premises building insurance should be covered by your landlord.


Whether you rent or own, you are responsible for insuring your contents. This includes equipment, such as computers, telephones, and tracking systems. And don’t forget other office items such as desks and chairs. If something happens and there is a total loss, the cost of replacing everything can quickly mount up.


Loss of income insurance

In the event of a catastrophe, you may be unable to trade for a period of months. However, wages and bills will still need to be paid. For peace of mind, you can get insurance to cover any loss of income due to something unexpected. This can help your business to make it through tricky times.


Public liability insurance

Even if your local authority does not insist on public liability insurance as a condition of your licence, it can be prudent to have it. This will protect you financially if a member of the public is injured as a result of the actions of your company or one of your drivers. The larger your company gets, the greater the risk of this occurring and the higher the potential costs may be should the worst happen. Public injury awards can be significant, especially if there is a life-changing injury. Public liability insurance gives you financial peace of mind.


Cheap minicab insurance

Taking out the right minicab insurance will support your business no matter what happens. Buying it at the right price is another important consideration if you want to maximize your profits this year. Like all insurance, shopping around is the best way to secure the lowest price on minicab insurance. You could contact as many insurance companies as you can for quotes.


Alternatively, use an independent insurance broker, like Park Insurance, to do the legwork for you. We’ve been helping taxi drivers and cab firms for thirty years and we understand your specific needs. As one of the UK’s largest brokers, we have significant buying power, which we use to negotiate great deals for our customers. And because you’ll be speaking to a person, not just inputting data on the computer, you can be certain you are getting the right level of cover with no nasty surprises in the small print.

Have a question or want more information on minicab insurance? Talk to our expert team on 01179556835 today or fill in the form below for a quote.

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    This article was originally published in February 2015. It has since been completely updated to provide you with the best and most accurate information.