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Taxi and private hire
Private hire operator insurance protects the business that takes bookings and dispatches drivers, usually through public liability, employers' liability, office and business interruption cover alongside the drivers' motor policies. It matters because the law makes the operator a party to every hire contract it accepts.
Part of: Taxi and private hire insurance
In short
A private hire operator is the business that accepts bookings and sends a licensed driver and vehicle. Outside London it needs an operator's licence under the Local Government (Miscellaneous Provisions) Act 1976; in London, under the Private Hire Vehicles (London) Act 1998. Section 56(1) of the 1976 Act deems each hire contract to be made with the operator that accepted the booking. Operators commonly buy public liability, employers' liability, office, cyber and business interruption cover, and must check that every vehicle they dispatch is licensed and insured. London operators with public-facing premises must hold at least £5,000,000 public liability cover.
Section 46(1)(d) of the Local Government (Miscellaneous Provisions) Act 1976 makes it an offence to operate a private hire vehicle in a controlled district without an operator's licence under section 55. An operator's licence normally lasts five years, or a shorter period the council sets (section 55(2)). The Private Hire Vehicles (London) Act 1998 defines an operator as a person who "makes provision for the invitation or acceptance of, or who accepts, private hire bookings", and section 2(1) requires a London operator's licence for that activity.
That covers a traditional office with a radio circuit, an app-based platform and a one-person business taking calls from a mobile. If the business takes bookings, it is likely to be an operator. This guide is part of our taxi and private hire insurance section.
Section 56(1) of the 1976 Act says every contract for the hire of a licensed private hire vehicle is deemed to be made with the operator who accepted the booking, whether or not the operator provided the vehicle. In D.E.L.T.A. Merseyside Ltd v Uber Britannia Ltd [2025] UKSC 31 (29 July 2025) the Supreme Court held that the Act does not require operators outside London to contract as principal, but described section 56(1) as a deeming provision that makes the operator liable on the hire contract.
So a passenger with a complaint about a journey, such as a missed flight or lost property, may look to the operator as well as the driver. Injury claims arising from the use of the vehicle normally fall on the driver's motor insurance, but the operator can still be drawn in, for example over how a booking was handled or how a driver was vetted. Whether a liability policy responds to contract claims depends on the wording; many exclude purely contractual liability.
| Exposure | Cover usually used | Points to check |
|---|---|---|
| Visitor or passenger hurt at your office or waiting area | Public liability | London operators with an operating centre accessible to the public need at least £5,000,000 for any one event (regulation 9(2)) |
| Injury to employed call handlers, dispatchers or drivers | Employers' liability | Compulsory if you have employees; minimum £5 million (HSE) |
| Booking system or dispatch platform goes down | Business interruption and cyber | Cyber wordings vary on system failure versus attack |
| Passenger data stolen or exposed | Cyber | Booking records hold names, addresses and journey details |
| Office equipment, radios, computers | Office contents | Equipment kept in drivers' vehicles may need separate cover |
| A driver's motor policy fails or is invalid | Contingent motor liability, where available | Not standard; terms and availability depend on the insurer |
How drivers are engaged affects which policies apply. In Uber BV v Aslam [2021] UKSC 5 the Supreme Court upheld the finding that the drivers in that case were workers, not independent contractors, for employment rights purposes. Worker status does not automatically make someone an employee for compulsory employers' liability insurance, but the facts of each arrangement matter, and HSE guidance sets a £5 million minimum where cover is required.
Describe your arrangements accurately to insurers: who owns the vehicles, who insures them, whether drivers are on payroll, and whether you rent vehicles to drivers. If the operator owns the cars, a taxi fleet policy is often more practical than separate policies.
Because the operator must not dispatch an unlicensed vehicle or driver, and because the vehicle licence depends on insurance, a lapsed motor policy is a licensing problem as well as an insurance one. Practical controls include recording each vehicle's certificate and expiry date, checking renewals before the expiry date, checking that the policy permits private hire use rather than social or business use, and checking the Motor Insurance Database where you have a lawful basis. Insurers asked to cover the operator often ask what checks you run.
Illustrative: a driver's policy is cancelled mid-term for non-payment and the operator keeps dispatching jobs for two weeks. A passenger is injured. The operator now faces questions from the licensing authority, and possibly a claim, over a check that would have taken minutes.
Apex arranges insurance for private hire operators, including liability, office and fleet covers. A broker reads each enquiry and comes back with options, with no fee for a quote; cover is subject to the insurer's acceptance and the policy terms. To quote we need your business activities, turnover, location and claims history, plus your licensing authorities, number of vehicles and drivers, how drivers are engaged, booking volumes, premises details and the booking systems you use.
In London, yes where the operating centre is accessible to members of the public: the operators' licence regulations require at least £5,000,000 for any one event. Outside London it depends on your council's licence conditions, but most operators buy it anyway because passengers and visitors come to the office and contract clients commonly ask for it.
Injury and damage caused by driving are normally claimed under the driver's or fleet's motor policy, because motor insurance is compulsory for that use. The operator can still face claims over the booking itself, since section 56(1) of the 1976 Act deems the hire contract to be made with the operator, and over how drivers were vetted.
In D.E.L.T.A. Merseyside v Uber Britannia [2025] UKSC 31 the Supreme Court held that the 1976 Act does not require operators outside London to accept bookings by contracting as principal with the passenger. It also confirmed that section 56(1) deems the hire contract to be made with the operator that accepted the booking.
In London, the operators' licence regulations require bookings to be kept for twelve months from acceptance. Outside London, section 56 of the 1976 Act requires records and councils set the detail; the Department for Transport's statutory standards suggest keeping booking records for at least six months.
If any drivers or office staff are your employees, employers' liability insurance is compulsory, with a minimum of £5 million under HSE guidance. Self-employed drivers may fall outside it, but status depends on the real arrangement, and in Uber BV v Aslam the Supreme Court upheld findings that the drivers in that case were workers.
Tell us what your business does, your turnover and any claims. A broker reads every enquiry and comes back with options. No fee for a quote. Or call 0117 325 0027.
Start a commercial enquiry Request a callbackApex Insurance Brokers Limited is authorised and regulated by the Financial Conduct Authority. Registered in England and Wales, company number 07014570. This page is general information, not advice on your individual circumstances, and it does not guarantee that cover will be available or on what terms.
