ARTICLE VI. VEHICLE FOR HIRE INSURANCE REQUIREMENTS

30-18 Minimum insurance coverage.

(a)    Each TNC licensee shall, for each vehicle operating under its license, maintain primary automobile liability insurance coverage of at least one million dollars ($1,000,000.00) of liability coverage for bodily injury and property damage arising from the operation of a vehicle for hire.

(1)    This coverage shall be applicable once a vehicle for hire accepts a ride request through the company’s digital platform, website, telephone, or any other method of communication and shall continue until the last requesting passenger departs the vehicle.

(2)    This coverage shall include underinsured/uninsured motorist coverage to the extent required under 23 V.S.A. § 941.

(b)    Each TNC licensee must also maintain contingent liability coverage of at least fifty thousand dollars ($50,000.00) per person and at least one hundred thousand dollars ($100,000.00) per accident, and at least twenty-five thousand dollars ($25,000.00) for property damage per accident during the time that a TNC driver is logged into a company’s digital network and available to receive requests for transportation service but has not accepted a ride request from a passenger.

(1)    The coverage required under this subsection (b) shall be maintained by a TNC and provide coverage in the event a TNC driver’s own automobile liability policy excludes coverage according to its policy terms or does not provide coverage of at least the limits required in this subsection.

(2)    This coverage shall include under insured/uninsured motorist coverage to the extent required under 23 V.S.A. § 941.

(c)    In every instance where insurance maintained by a TNC driver to fulfill the insurance requirements of this section has lapsed, failed to provide the required coverage, denied a claim for the required coverage or otherwise ceased to exist, insurance maintained by the TNC shall provide the coverage required by this section beginning with the first dollar of a claim.

(d)    Each other licensee shall, for each vehicle operating under its license, maintain commercial liability insurance coverage of at least five hundred thousand dollars ($500,000.00) for bodily injury and property damage arising from the operation of a vehicle for hire.

(e)    Insurance required under this section must be placed with an insurer authorized to do business in the state of Vermont or with a surplus lines insurer eligible under 8 V.S.A. § 5021 et seq.

(f)    Each licensee is under a continuing obligation to maintain valid insurance coverage of at least the minimums required by this section at all times. Failure to maintain insurance as required by this section shall be grounds for suspension or revocation of a license.

(Ord. of 2-16-16)