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Thread: Pedicab Insurance

  1. #1
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    Default Pedicab Insurance

    Here are some helpful hints about getting insurance for your cabs

    for the proper coverage which should be on an "occurrence" form with 1,000,000 liability per occurrence and $2,000,000 aggregate, premiums usually start as follows

    1 cab = $1,500.00
    2 Cabs = $3,000.00
    5-7 Cabs = $5,000.00

    the more units you have the less you will pay per unit

    *****IMPORTANT***** if you have a "claims made" policy, it is an outdated form by about 25 years and is cheap but in a lot of cases worthless.

    you can email me with questions sbaratz@massinsurers.com

    i have been getting a lot of calls lately but email is the best way to reach me

    regards to all pedalers

    Scott

  2. #2
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    Default one thing more

    just wanted to tell you guys one thing that really disturbed me - I got a call from someone yesterday who told me he has 26 cabs and was originally paying $2,400.00 a year and now got a rate hike of $7,000.00 - i urged him to take a close look at what he is buying because there is no way this is a legitamate policy - as they say BUYER BEWARE. I urge you all to read your policies carefully - if you are confused with them email them to me or call me and i will read them and let you know the deal and of course there is no charge for this.

    email again is sbaratz@massinsurers.com and PH# 617-965-1777

  3. #3
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    Default

    Scott can you please explain in more detail what "occurance" and "claims made" policies are, how they differ, why one is so more expensive than the other, and why it is important to go with one over the other.

  4. #4
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    Default Occurrence Vs Claims Made

    Dear Ken and everyone else - there are many differences in the two policy forms and it would be better to talk on the phone to discuss because I don't think i can clearly cover everything here - but i will give you the major issues.

    first of all - a "claims made" policy is not meant typically for a general a liability operation such as a pedicab operation. It is meant to cover companies who offer professional services and or who need personal protection for their Directors and Officers. In the 80's because of many uncovered liability claims which led to law suits, the courts as well as the insurance companies produced the occurrence form to differentiate risk management properly.

    On a claims made policy form you need to be sure there is what is called a retro active date. If there is not, a claim can not be filed once the policy expires and a new term begins. That is why on your claims made quotes you will notice that in order to buy what is called the 90 day extended reporting period to protect against this common problem, the additional cost if chosen is 400% of the annual premium - the additional optional cost in itself should give you an idea of just how important it is to be able to file a claim that happened during the policy period even when your policy has expired - nobody can predict when a claim will be presented and more times than not it happens long after the actual "incident" - There are other differences such as limited or no defense costs included etc -

    On an occurrence policy you need not worry about any of this BS or reading any fine print - basically as long as you had a policy at the time you get sued, you have coverage unless of course you were negligent (don't pedicab driving with a blind fold on - common sense you know??) - in my opinion this is worth paying for and will help you sleep better at night while your drivers are doing whatever they may be doing under your company name. As a matter of fact when I first started creating these pedicab programs some years ago, I made the decision not to even consider offering "claims made" policies even though I had requests for them (because they are so cheap). The reason for this is because I did not want to be on the end of the law suit where a client would claim that the reason he / she is being sued is because his insurance agent sold him a cheap policy and didn't bother to explain it to him - then I would need to file a claim against my own E&O policy for defense - BIG NO THANKS

    I hope this answers some of your questions and sorry if I seemed like i was rambling. Please feel free to contact me via email or phone with any questions or concerns

    email sbaratz@massinsurers.com
    ph# 617-965-1777

  5. #5
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    Default

    I found a good deal on a pedicab near the tourist area lift of my city and I was thinking to give a try but was not knowing where to start to get the insurance.I really found your post useful and now I have almost understood from where should I start.

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