Taking a Risk: What You Should Know About The Limousine Business

According to The Business Research Company, the global taxi and limousine services market grew from $95.5 billion in 2021 to $104.57 billion in 2022. This is a growth rate of 9.5%. This transformative change shows how popular the limousine industry is becoming, and other reports believe the it will continue to thrive even more into 2024. As the industry grows though, it is important to understand both the risks and benefits that are associated with running a limousine business. 

Risks You Should Know About

A limousine is a commercial vehicle designed to safely transport people from one location to another. The limousine industry comes with risks that should be explored before starting a limo business. These include: 

Vehicle Damage

Any vehicle on the road can be damaged. However, the risk is greater for vehicles used for commercial purposes because they are likely on the road more often than vehicles used for personal use. Even safe, defensive limousine drivers can be involved in an accident of no fault to the limo driver. There’s also a chance that inclement weather could cause a greater risk for a limousine driver.


Injuries can occur to passengers or the limousine driver. If the injuries are severe enough, this could lead to costly medical bills. This is why limousine companies need commercial auto insurance. It normally covers vehicle damage, bodily injuries, and property damage.


People look to limousine services for special celebrations like prom, weddings, birthday parties, date nights, etc. A limousine is an option you can take when you plan on consuming alcoholic beverages and to avoid drinking and driving. However, there is a risk with transporting intoxicated passengers.

In 2009, a Massachusetts appeals court ruled that a limousine company was liable for dropping off a drunk passenger beside his car. That customer entered their personal vehicle, drove away, and later caused a crash into an off-duty police officer. The officer and other passengers were seriously injured. The court found that the limo service and driver had a legal responsibility to prevent the drunk driver from getting behind the wheel of a car.

Benefits of Running a Limousine Business

Understanding the risks associated with operating a limousine business can also help you maximize its benefits. Some benefits include the following:

  • Be your own boss
  • Opportunities for growth in a lucrative business
  • Offers versatility (corporate events, prom, black tire affairs)
  • Year-round business

TIB Insurance: Count on Us for Your Insurance

Commercial auto insurance is necessary to protect your limousine passenger business. It’s equally important to ensure you have the proper commercial auto insurance that your business needs. Our team at Transportation Insurance Brokers can walk you through the process to select the right policies for you. We also offer free, comparative quotes for commercial auto insurance. We’ll make sure you receive the best rate! 

TIB offers other forms of insurance such as garage keepers insurance, property liability insurance, property coverage, commercial umbrella insurance, professional liability insurance, and workers’ compensation. As the nation’s largest brokerage firm, we want to supply insurance coverage for all our clients’ needs. For more information, please contact us by clicking here.