It’s a virtual guarantee that someone’s going to sue your Non Emergency Transportation company. Whether it’s a passenger who alleges whiplash when you back into a light pole in a parking lot, or someone who’s hip is broken when their wheelchair falls off the lift during unloading. The reality is a non-emergency transportation insurance policy faces a great amount of risks.
Some suits will be for legitimate cause, while others will be completely fabricated and unfair. Regardless, an insurance company will incur substantial costs on your behalf, whether they settle out of court or pay legal fees to defend you. If the total money paid out by an insurance company is greater than the money you paid them in premium, you have become unprofitable for them. So, if you’ve paid $50,000 in premium but an insurance company had to pay a wheelchair passenger $70,000 because one of your drivers didn’t properly secure the wheelchair causing the passenger to fall out and break both of his femurs, then you have cost the insurance company $20,000.
Insurance companies, therefore, have to make a decision about whether or not they want to insure NET vehicles. To be honest, most don’t. They do not have the skill or expertise to appropriately price and underwrite NET businesses, so they just don’t write them. The few companies that do are going to rigidly underwrite and price in a manner where they can pay the claims they are anticipating but still be profitable. If the number of claims the industry as whole has paid out over the last five years has been extreme, or if the litigious environment of the state in which you operate is negative toward the defendant, then the premiums are going to go up.
The Bottom Line For NET Insurance Premiums
Regardless, an insurance company will guess how much money they are going to pay out in claims in the upcoming year, and then estimate how many NET accounts they are going to insure over the year, and then make sure the premiums they decide to charge exceed the anticipated losses. This will be the base rate, and then insurance companies have the latitude to add a few small credits or debits based on the experience of your particular NET operation.
The cost to insure non emergency transportation can be expensive and most insurance carriers don’t cover Non Emergency Transportation Insurance. They do not have the skill or expertise to appropriately price and underwrite NET businesses, so they just don’t write them. We are able to write your Net business with the best insurance coverage and because of our experience we will give you advice and tips to keep your rates as low as possible. Learn what our price would be and how we can provide you with good insurance coverage by filling out an insurance quote at the top of the page.