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Risks and insurance for the taxi industry – see examples of insurance for your industry

Recognising what insurance is needed, and what situations are covered, may be difficult for new taxi business owners. On this page, we’ve provided examples of situations that are covered by insurance for taxi business owners.


Taxi insurance

Taxi business owners who have taxi insurance most frequently receive compensation for damage caused in traffic accidents. Taxis also typically have a payment reader which the insurance may cover if the damages exceed the deductible.

Both are covered by Maxi Motor Insurance but not by the least comprehensive motor vehicle insurance, Medium Motor Insurance. Motor liability insurance compensates personal injuries caused by road accidents, as well as the innocent party’s losses. That’s why it's a good idea to choose motor vehicle insurance with more comprehensive coverage. Most taxi business owners include additional cover for windscreen and window damage, consequential loss and business interruption in the event of machinery breakdown in their comprehensive motor vehicle insurance.

Next, we’ll go over a few illustrative examples of how taxi insurance covers damage and accidents in different situations.

Example 1: Parking in a car park

It’s lunchtime during a normal day at work as a taxi entrepreneur. The entrepreneur parks the taxi on the third floor of a car park and locks the car. After lunch, he gets back to the taxi. While he was gone, the car has been broken into. The side window is smashed, and the payment reader is gone, despite the fact that it wasn’t in a visible place.

According to the police report, an unknown person broke into the taxi by breaking the side window. The person attempted to start the car a few times but was unsuccessful. In the end, they settled for the payment reader and escaped the car park through a staircase. 

In the above situation, the insurance pays out compensation as follows: after the deductible, theft cover included in motor vehicle insurance compensates for the broken side window, property insurance included in Commercial Transport Extra covers the stolen payment reader, and consequential loss insurance covers the costs of using a replacement car while the taxi’s side window is repaired. 

Example 2: Collision with an animal

The taxi entrepreneur is taking a customer home when an elk suddenly runs across the road. There is no time to avoid a collision, and the car hits the elk. In the crash, the windscreen is broken, and the front of the taxi is damaged, causing the engine to break down. Both the driver and customer are lucky to be spared major injuries. As a result of the accident, the taxi has to be towed to a repair shop, and the customer must call another taxi to get home.

In the above example, Maxi Motor Insurance would cover all damages caused in the accident, with the exception of days when the taxi is unavailable for use. Specifically, animal insurance would cover the damage caused by the elk, and emergency road service insurance would cover the costs of towing and the second taxi for the customer. Consequential loss insurance pays compensation for the days which the taxi is in for repairs. 

Commercial Transport Extra

As many as 86% of our taxi business owner customers trust our Commercial Transport Extra insurance.

Taxi business owners have received compensation from Commercial Transport Extra most commonly in the following situations:

  • Dropping and breaking a personal mobile phone
  • Malfunctions in ride hailing devices and satnavs
  • Upholstery soiled during taxi rides

Next, we’ll go over a few illustrative examples of how Commercial Transport Extra might cover damage and accidents in different situations.

Example: Escorting a customer home 

The taxi entrepreneur is taking a customer home from the shops. The customer is digging through their grocery bag for a receipt when they accidentally spill the contents of the bag on the seat.  The jar of blueberry jam in the bag breaks and soils the car’s backseat.  

When they arrive, the customer asks the entrepreneur to escort them to the front door as the footpath is slippery. The taxi entrepreneur and customer reach the front door when the entrepreneur slips, causing both to fall. The customer is injured and has to visit a hospital a few times to treat their ankle.

In this example, Commercial Transport Extra covers the cleaning of the taxi’s upholstery and the customer’s injuries.

Accident and medical expenses insurance

In addition to motor vehicle insurance and Commercial Transport Extra, taxi business owners also commonly opt for accident insurance. Due to the large amount of time spent on the road, taxi drivers are at a higher risk of crashes and other traffic accidents than the average consumer. Particularly at night and at the end of a long shift, it’s easy to lose concentration and end up in dangerous situations. 

On the other hand, 90% of short-term absences from work are due to illnesses instead of accidents, and even injuries from accidents are often caused by an illness. Besides accident insurance, it’s a good idea to consider choosing medical expenses insurance to ensure your employees’ safety and good treatment.

We offer medical expenses insurance, or Health Insurance, for entrepreneurs and businesses who are members of the Finnish Taxi Owners Federation and their employees as a group benefit insurance. To receive the benefit, the taxi entrepreneur must have occupational accident and occupational disease insurance, self-employed persons’ accident insurance and voluntary accident insurance at Pohjola Insurance.

From the entrepreneur’s point of view, medical expenses insurance may also be a good option, because although according to Kela statistics, entrepreneurs take less sick leave than regular employees, their sickness absences are on average longer than for regular employees.

Example: Sore shoulder

The taxi entrepreneur has driven long shifts for 20 years but has always sat in an awkward posture. His upper body is often tilted forward when seated, causing the shoulders to become sore over time. 

Eventually, the pain starts to make driving difficult, and the entrepreneur decides to see a doctor. At the doctor, his shoulder is examined thoroughly. Based on the examinations, he is diagnosed with a rotator cuff syndrome of the shoulder and is prescribed one treatment period of physiotherapy and painkillers. 
In the above example, Comprehensive Health Insurance would cover the costs of the general practitioner’s consultation, examinations, painkillers and up to 10 sessions of physiotherapy.

YEL pension insurance

In the event of sick leave, the taxi entrepreneur can apply for a daily allowance from Kela. With YEL insurance, the entrepreneur is entitled to the allowance even after just one day of illness. The amount of the allowance depends on the earned income specified for the YEL insurance.

Taxi entrepreneurs spend a large part of their lives behind the wheel in the same posture, which may cause excessive strain on the lower back, for example. According to Kela, in 2020, the daily allowance provided by YEL insurance was claimed most often due to sick leave caused by musculoskeletal disorders.

Changes to the Transport Services Act in 2021 

In 2021, the Transport Services Act was changed to tighten the regulations on taxi services. As of the start of May 2021, all taxis must be equipped with a taxi roof sign. 

Also, as of the start of September 2021, consumers must be told the fare of the journey and how the fare is determined before the start of the journey. 

As such, the fare can either be agreed in advance or determined based on time and the distance travelled. If the fare is determined based on time and distance, the taxi must be equipped with a fare meter.

Taxi entrepreneur – ask for an insurance offer

Whether you are a new or experienced taxi entrepreneur, we are always ready to help you identify and select the right insurance for you. Contact us using the request for offer form below, and our experts will help you find the most suitable insurance for your taxi business.

Would you like to receive an offer for insurance for the taxi industry? Leave us your company’s contact details, and we will be in touch with you soon!

The insurer is Pohjola Insurance. The losses will be covered in accordance with the law and the insurance terms and conditions. TyEL and YEL insurance is issued by Ilmarinen Mutual Pension Insurance Company.