Insurance & Liability for Fleet Operators

This guide explains how liability is allocated in the Levy Fleets partnership, what each side stands behind under the service agreement, and the insurance coverage we recommend operators consider.

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How Liability Is Split

Levy Fleets uses a mutual indemnification structure: each side stands behind the part of the operation it actually controls.

What Levy stands behind

Under §11.2(a) of the service agreement, Levy defends and indemnifies the operator for third-party claims to the extent they arise from:

• Bodily injury or property damage directly caused by a defect or malfunction in Levy's software, payment-processing, account, or telemetry systems within Levy's control
• Levy's gross negligence or willful misconduct
• Claims that the Levy Platform infringes a third party's intellectual property rights

Levy's indemnity does not extend to claims arising from the physical vehicle, its maintenance, charging, storage, deployment, retrieval, or inspection, or from acts or omissions of the operator, its employees, or its contractors.

What the operator stands behind

Under §11.2(b), the operator defends and indemnifies Levy for third-party claims to the extent they arise from:

• The operator's ownership, possession, storage, charging, deployment, retrieval, inspection, maintenance, repair, or other operation of the vehicles
• The operator's premises or any location where the operator makes vehicles available
• Any failure to obtain, or any violation of, applicable laws, ordinances, permits, licenses, or municipal rules
• Acts or omissions of the operator's officers, directors, employees, contractors, or agents
• Statements, representations, marketing, or communications the operator makes to riders, the public, municipalities, or other third parties
• Any failure to perform the operator's obligations under §6 (Partner Responsibility) of the service agreement

This split mirrors how risk actually flows in the operation: Levy controls the software, payments, and account systems; the operator controls the vehicles, premises, permits, and local conduct.

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Limitation of Liability

§13 of the service agreement caps each party's total cumulative liability at the fees paid or retained in the twelve (12) months immediately preceding the event giving rise to liability, and excludes indirect, incidental, consequential, special, exemplary, and punitive damages on both sides.

Carve-outs (i.e., claims that are not capped) include:

• The operator's indemnification obligations under §11.2(b)
• Levy's intellectual-property indemnification obligations under §11.2(a)(iii)
• Breach of confidentiality obligations
• Infringement of the other party's IP
• A party's fraud, gross negligence, or willful misconduct
• The operator's payment obligations to Levy, including any minimum-retainer shortfall

Levy's ordinary software-defect indemnity under §11.2(a)(i) remains subject to the liability cap unless the claim arises from Levy's gross negligence or willful misconduct.

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Insurance Information for Fleet Operators

Levy does not require fleet operators to carry insurance as a condition of the partnership, and there is no insurance requirement in the service agreement. Our existing policy does not permit adding fleet operators as additional insured parties directly. However, our agreements are structured to help minimize your liability exposure to the fullest extent possible under current operational guidelines.

Many of our partners opt to obtain their own general liability insurance coverage as an extra layer of protection, particularly if operating larger, publicly accessible fleets or those utilizing their own branding. One resource that some have previously utilized is Christensen Group.

The liability language in our agreements

Service Agreement (between Levy Electric and the operator):

Service Provider (the "Indemnifying Party") agrees to indemnify, defend, and hold harmless the Partner, its affiliates, and their respective directors, officers, employees, agents, and representatives (collectively, the "Indemnified Party") from and against any and all claims, demands, actions, losses, expenses, damages, penalties, fines, assessments, liabilities, and any other costs (including reasonable attorney's fees, court costs, investigation costs, and other expenses) (collectively, "Claims") arising out of, resulting from, or in connection with the Levy Fleets platform.

Rental Agreement (between Levy Electric and the end-user rider):

The Rider acknowledges and agrees that in the event of any dispute, claim, or cause of action arising out of or related to the use of Levy Services, Vehicles, or related equipment (collectively, "Dispute"), the Rider will solely assert such Dispute against Levy Electric Inc. and not against any of Levy's partners, affiliates, contractors, agents, or local municipalities, governments, or entities including but not limited to the city where the Vehicle was rented or any property owner, garage, or establishment where the Vehicle was rented or operated. The Rider expressly agrees to indemnify and hold harmless such third parties from any claims, costs, damages, liabilities, or expenses incurred due to Rider's breach of this provision.

Your signed service agreement is available in your operator dashboard, and the full rider rental agreement is published at fleets.levyelectric.com/legal/rental-agreement.

Levy's Own Coverage

Levy maintains commercial insurance appropriate to its operation of the Platform, including technology errors and omissions / cyber liability coverage in amounts commercially reasonable for a software platform of its size.

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Rider-Side Protections

Independent of how Levy and the operator allocate risk between themselves, the rental agreement that every rider must accept before their first trip includes a release of "Released Parties" — a defined term that explicitly includes Levy's local fleet operators alongside Levy itself, its affiliates, contractors, and the municipalities in which the rental occurs.

The rider also accepts liability for theft of, or damage to, the vehicle caused by the rider's negligence or misuse, and may be charged up to the depreciated cost of the vehicle.

The full rental agreement is published at fleets.levyelectric.com/legal/rental-agreement.

The rider release is a useful additional layer, but it is not a substitute for the mutual indemnification described above or for any coverage the operator chooses to carry.

Some rider waivers are limited or unenforceable in certain jurisdictions, and a rider release does not bind third parties such as pedestrians or property owners.

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Theft & Vandalism of Vehicles

Fleet vehicles are owned by the operator. Insurance for physical damage to or theft of the scooters themselves is the operator's responsibility and should be addressed in the operator's own policy if desired.

Operational mitigations that reduce this exposure:

1. IoT security — GPS tracking, remote immobilization, and tamper alerts on every vehicle. See Anti-Theft & Vehicle Security.
2. Rider liability — The rental agreement holds riders responsible for theft or damage during their rental, with charges up to the depreciated cost of the vehicle.
3. Low loss rates — Fleet theft rates across the Levy network are below 0.5% annually, and many locations experience zero theft. See Vehicle Lifecycle & Durability for context.

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Claims Process

If a rider, pedestrian, or third party files a claim

1. Notify Levy immediately — email support@levyelectric.com with all available details (date, location, vehicle, parties involved, photos, police report if any).
2. Notify your insurer if you carry coverage — if you have a liability policy, your insurer needs prompt notice to preserve coverage, regardless of whether Levy or the operator is the indemnifying party for the specific claim.
3. Each side's indemnity is determined by the source of the claim under §11.2 — claims tied to a Platform malfunction or Levy IP issue flow to Levy's defense; claims tied to the physical vehicle, premises, permits, or local conduct flow to the operator's defense and any coverage the operator carries.
4. Cooperate with the indemnifying party's defense as required by §11.2(c) of the service agreement.

If a vehicle is stolen or damaged

1. Use the dashboard to track the vehicle's last known location and status.
2. Follow the Missing Vehicle Recovery guide.
3. File a police report if the vehicle cannot be recovered.
4. Report to Levy — email support@levyelectric.com with the police-report case number.
5. File a claim with your insurer if you carry physical-asset coverage on the fleet.

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Quick Reference

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Questions?

For questions about insurance, liability, or specific requirements from your city, contact us at support@levyelectric.com.