Livery Insurance Requirements and Regulations in New York State

Operating a livery service in New York State requires following certain regulations around insurance coverage. This article provides an overview of the livery insurance requirements in New York, including minimum liability limits, approved carriers, and regulations from the State Department of Financial Services.

What is Livery Insurance?

Livery insurance provides coverage for vehicles used to transport passengers for a fee, such as:

• Taxi cabs
• Limos
• Black cars
• Ridesharing services

It functions similarly to commercial auto insurance. Livery policies have higher minimum limits than personal auto insurance and also cover additional risks involved with transporting passengers professionally.

New York Livery Insurance Requirements

New York has regulations around the minimum liability insurance limits required for livery vehicles statewide. However, New York City TLC has additional requirements for vehicles licensed in NYC.

Statewide Livery Insurance Minimums

Under New York State law, livery vehicles must maintain:

• $25,000 bodily injury per person
• $50,000 bodily injury per accident
• $10,000 property damage

This meets the minimum requirements under Article 8 of the NY State Vehicle & Traffic Law.

NYC TLC Livery Insurance Minimums

For livery vehicles licensed in New York City by the Taxi & Limousine Commission (TLC), higher insurance minimums apply:

• $100,000 bodily injury per person
• $300,000 bodily injury per accident
• $25,000 property damage

This meets the requirements outlined in the TLC Driver Safety and Insurance Rules.

So livery insurance policies must meet either the state or NYC TLC minimums, depending on where the vehicle operates.

Approved Carriers for Livery Insurance in New York

The New York State Department of Financial Services maintains a list of approved insurance carriers for livery programs. As of February 2023, there are over 60 approved carriers including:

• AIG
• Allstate
• Chubb
• Farmers
• Geico
• Hartford
• Liberty Mutual
• Progressive
• State Farm
• Travelers
• USAA

And many others. See the full approved carrier list here.

Livery operators must choose from these DFS approved insurance companies when buying their policy.

Regulations and Oversight

Livery insurance in New York is regulated by the State Department of Financial Services and in New York City by the TLC.

Department of Financial Services

The NY DFS oversees livery insurance requirements, approved carriers, rates, and consumer complaints. Some key regulations include:

• Requiring minimum liability limits statewide
• Maintaining the list of approved carriers
• Requiring carriers file rates and get approval for livery programs
• Investigating consumer complaints against carriers

They provide oversight to ensure compliance with state insurance regulations.

NYC Taxi & Limousine Commission

The TLC specifically regulates livery services within New York City. They enforce requirements such as:

• Mandating higher minimum insurance limits
• Requiring TLC licensing and standards for drivers and vehicles
• Setting livery rates and fare rules
• Enforcing safety and insurance compliance

Livery operators in NYC must comply with regulations from both DFS and TLC.

Penalties for Non-Compliance

There are penalties if livery operators do not maintain required insurance or operate without TLC licensing in New York City:

• Fines from $500 – $1,000 per offense.
• Suspension or revocation of TLC license.
• Seizing of TLC licenses plates.
• Impoundment of vehicle.

Maintaining continuous insurance coverage meeting state and TLC requirements is crucial for avoiding interruptions in operations.

Shopping for Livery Insurance

When shopping for TLC insurance in New York, here are some tips:

• Check the DFS list of approved carriers and choose from those companies.

• Confirm the policy meets NYC minimums if operating in the city.

• Ask about discounts available, such as for drivers with clean records.

• Inquire about additional rideshare coverage or commercial gaps you may need.

• Work with an agent familiar with NYC TLC regulations.

An insurance broker who specializes in livery insurance can walk you through the process and make sure you get properly insured.

Frequently Asked Questions

Here are answers to some common questions about New York livery insurance requirements:

What vehicles need livery insurance?

Any for-hire vehicle that transports passengers for a fare needs coverage, including taxis, limos, rideshare, medical transport, shuttles, etc. Personal vehicles used for rideshare driving also need this special policy.

Can I just use my regular auto insurance?

No, standard auto insurance will not cover transporting passengers commercially. Livery policies also have higher limits. Notify your insurer if using your car for rideshare.

What is included in a livery policy?

It covers third-party liability for injury and property damage, uninsured motorist coverage, collision, comprehensive, medical payments. But check your policy language for specifics.

Does each vehicle need its own policy?

Yes, each livery vehicle needs to be insured separately. Fleets can get multi-vehicle programs but each vehicle will carry its own policy.

What if I operate outside New York City?

Your vehicle then just needs to meet the statewide livery insurance minimums rather than the higher NYC TLC limits. But NYC based TLC plates have certain restrictions.

Stay up-to-date on all New York State and City requirements to keep your livery service in compliance. Work with a knowledgeable agent to make sure you get the right coverage.

Conclusion

New York has regulations around minimum insurance limits and approved carriers for livery vehicles. In New York City, additional TLC rules apply. Maintaining continuous compliant insurance coverage is essential to legally transport passengers in NY and avoid penalties. An experienced agent can guide livery operators through meeting both State and City requirements.