Small Public Autos Equal Big Opportunities
Often, when people think of Commercial Auto, large trucks come to mind. But that is only some of what our Commercial Auto department sees daily. Public livery accounts are a big part of what we can assist you with. Most of our public auto risks are written with National Indemnity (NICO), which has a broad appetite for the types of risks it insures. Non-Emergency Medical Transportation and taxis are a couple of their top public livery classes. Others include church vans and buses, party buses, school transportation vehicles, and even limousines.
When preparing a submission for Public Auto accounts, in addition to our public auto application that will be requested, having an understanding of the following topics will help us better understand and classify the risk:
Who?
Is the applicant transporting individual passengers or groups? Are the passengers locals or tourists? Do the passengers require medical supervision during the trip? Are rides booked directly with the applicant, or are rides generated through a third party such as Uber?
What?
What kind of autos are being driven? Any modifications to these autos? Wheelchair lifts with tie-downs? What is the max seating capacity of each vehicle? Provide the number as if no seats have been removed.
Where?
Does the applicant focus on specific delivery locations, such as airports, casinos, medical offices, breweries, or vineyards? Is the insured cruising for passengers?
Are filings needed?
Like trucking risks, these for-hire public livery risks can require federal and/or state filings, depending on their operations. The filings will necessitate confirming that all owned, leased, or operated commercial power units are scheduled on the application. Filings can also require a higher limit of liability, depending on the seating capacities of the vehicles.
Plans for growth?
Does the risk plan to grow throughout the year? Will they buy new units or add drivers with their own vehicles?
Contracts and Certificate Requirements:
Many public auto risks have contracts with the companies hiring their services. These contracts typically mention specific requirements, such as Additional Insured status or specific covered auto symbols. It is highly recommended to obtain a copy of the prospective contract to help ensure you are obtaining a quote that won’t later have to be adjusted.
Public Auto popularity is on the rise—don’t miss out on an opportunity because you aren’t familiar with the type of operation. Give us a call to discuss, and let us help you place your next Commercial Auto account.
