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Boston Taxi Insurance Reform

Joseph Coupal - Thursday, April 04, 2013
In the last few days the Boston Globe Spotlight Series has featured three reports (you can read them on Boston.com here, here, and here) that explore the corruption of the Boston taxicab industry, with a particular focus on the extortion and mistreatment of cab drivers.   Following the publication of the series, Mayor Menino told the press that he was looking into the issues that were brought to light and that he planned to hire specialists that would dramatically change the way the cab industry is run in the next few months.  He particularly focused on the Medallion owners having inadequate insurance coverage for personal injuries.   At Brooks & Crowley, we too often see the negative effect of inadequate coverage in accident cases involving cabs.  When cab drivers are at fault in motor vehicle accidents, the injured party may only recover a maximum of $20,000.00 from the responsible cab driver’s insurance policy.   With medical bills at an all-time high, this amount is not even remotely sufficient to compensate anyone who received a significant injury.  Seeking redress above the insurance policies and against the taxi owners is difficult to impossible, due to the corporate structures of the owners.   The Spotlight series also  why there may be so many accidents involving cab drivers.  Due to the oppressive fee structure, the cab drivers often work long hours just to avoid ending their shifts in the red. These sleep-deprived drivers can be a significant hazard on the road.  The idea that taxi cabs should be allowed to carry only $20,000.00 of insurance coverage is preposterous, given that even bicycle messenger companies are required to carry $1 million of coverage as a condition of doing business in Boston.   Hopefully, this Spotlight series will help bring about the change that is so badly needed in this industry.  If you are in a motor vehicle accident, call Brooks & Crowley for a free consultation.  

Contributed by Laura Martin


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