Trying to recover from a taxi driver or cab company whose driver has caused an injury can be extremely difficult. Even worse, despite the degree of control the Chicago city government exercises with respect to carrying on the cab trade, the City of Chicago has done very little to protect parties injured in accidents caused by taxi operators. Finally, taxicab insurance carriers are notoriously difficult to deal with on claims.
However, there is one bright spot. Under Chicago ordinances, taxicabs are required to carry automobile liability insurance limits of $350,000. This ordinance also applies to limousine services.
This is not as much insurance as you would hope to cover a business, however it is greater than your average auto insurance policy.
$350,000 is sufficient to cover damages in many accidents, but sometimes it's still inadequate. This is particularly true in accidents with pedestrian and bicycle collisions, where personal injury damages are likely to be significant.
In particular, pedestrians with serious injuries due to negligent taxi drivers have found it difficult to recover damages caused by cab drivers cab companies. This is especially disturbing when you stop to consider that in downtown Chicago, in one recent year more than one out of every four pedestrian crashes involved a taxi.