Taxi and Limousine Company Suspended for Operating Without Insurance

By San Francisco Limousine Specialist on October 7, 2010

An English limousine and taxicab company will have a business license suspension for five days after authorities discovered the company had transported guests for more than a month without having the required insurance coverage. Officials in Ajax, England say representatives from Lincoln Taxi and Limousine deliberately deceived them by transporting guests in rental vehicles after they learned that the company had lost its coverage. The limo company reportedly lost its insurance coverage on June 27 after receiving only one day of notification from the provider.
Lincoln Taxi Vice President Nick Poroszlay was summoned to a September 9 committee meeting to explain his company’s actions. “We did make a very poor business decision. It was very risky, and yes, we put people at risk, but we had to keep going,” he said. Ajax officials received an anonymous tip about the company’s lack of insurance coverage, and Manager of Bylaw Services Derek Hannan asked for an immediate meeting with Mr. Poroszlay on August 3. Mr. Poroszlay readily admitted his company was operating illegally.

“He confirmed that this was the case, I hadn’t even asked the question,” said Mr. Hannan. In failing to carry the required insurance coverage, Lincoln put themselves, their clients and the town of Ajax at significant risk as no one would have coverage in the event of an accident. “Ajax, being the licensing authority, could also be named in (law)suits if a Lincoln taxi were in an accident,” Mr. Hannan said in the interview. “By not carrying insurance, the town also wasn’t covered.”

During the August 3 meeting, Mr. Poroszlay told Ajax officials he would take his cabs and limousines off the road immediately and not transport guests until they had the required amount of coverage. Sometime later, Ajax officials learned about the rental car ruse, prompting the immediate suspension. Furious about the deception, Ajax Mayor Steve Parish warned the company about any further attempts to circumvent the law and lie to officials.
“If this thing ever came back before council, there would be absolutely no question as to the penalty,” he said. “I don’t see why council would want to see Lincoln Taxi have any licenses for any taxi ever again.”

Why are we talking about an unscrupulous limo service in England? The reason is that this is precisely the type of unethical and illegal behavior that puts all limo companies in a negative light. This has happened in San Francisco, other Bay Area communities and across the country, and it still happens today. Unreliable limo services put their guests at serious risk by not carrying insurance coverage, not having proper licensing and failing to obey the law.

At NLS Limo, we take our responsibilities to our guests very seriously and can produce proof of insurance and proper licenses upon request. As far as we know, all of the other San Francisco limousine companies also adhere to the same rules, and we would report them if we learned otherwise. The next time you need a limo service in San Francisco, call us first at 1-800-339-8936. If you like, ask us for proof of insurance and licensing. We won’t mind. It’s part of our responsibility to our guests and our profession.