The Salem News is reporting that the Danvers selectmen are meeting this week in response to North Shore Taxi owner Sean McKinnon who is questioning a bylaw in Danvers that requires taxi companies to carry $1 million dollars in insurance coverage in order for each taxi to receive a license.
McKinnon whose cab company resides in Peabody says the end result is that since it is virtually impossible to obtain a $1 million dollar coverage amount for his taxis he cannot obtain a license to operate in the town. Len Alkins, senior manager, general accounts at Mr. McKinnon’s insurance agency, Lighthouse Insurance Agency, concurred saying that that amount is “just not available.”
While the state’s commercial automobile insurance manual says “higher limits are available at the option of the insurer,” Alkins said high limits are cost-prohibitive, even at the $250,000/$500,000 level, the highest the state and private insurers will go.
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