I’m trying to set up insurance for a passenger transport business and I am required to get insurance that fits the following parameters:
- contingent primary auto liability coverage from the time a driver indicates that the vehicle is available to accept a ride request but before the driver has accepted a ride request
- $50,000 per person
- $100,000 per occurrence for bodily injury
- $25,000 in property damage
What kind of insurance is this referring to?
Contingent primary liability auto coverage is a type of insurance intended to protect the business owners. It covers the business should a driver contracted to perform a service on the business' behalf be underinsured in an accident. The name comes from how it is designed to perform. If the contracted driver is involved in an accident, the driver's policy is the primary policy. If its parameters do not cover the full scope of damage caused by the contracted driver, the contingent liability coverage is responsible for providing the extra amount of coverage needed. In the case in a driver being totally uninsured, the coverage will be designated as primary, and the policy assumes all costs.
Thanks again! I hope that this sheds some light on the issue!