We blogged on this some time ago but a recent customer
question has suggested it might be worthwhile re-visiting the subject.
By law, a vehicle on the road must have a minimum of third
party liability insurance. What that
means is that if due legal process finds that the vehicle’s driver was
responsible for an accident and awards damages to the other party involved,
there is an insurance policy in place to meet the potentially large sums
involved.
Of course, most private car owners will have higher levels
of cover than the legal minimum. That
will be in order to protect their vehicle and the costs of repairing or
replacing it following an accident.
In principle, these legal distinctions also apply to luxury
limo hire companies such as Bayside Limousines.
However, the legal requirements and the insurance cover details change
considerably when the vehicle is being used for “hire and reward” as opposed to
private motoring purposes.
Typically, a standard personal use third party liability
insurance policy will not be valid in situations where the vehicle concerned is
being used as a taxi or private hire limousine.
A specific registered business luxury limousine hire policy is required
in order to ensure that both the public’s and the hiring client’s interests are
protected should the worst happen in an accident.
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