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 the operator is expected to carry.

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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) or §14 (Insurance) 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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Operator Insurance Requirements

§14 of the service agreement requires every operator to obtain and maintain, at the operator's sole cost, the following coverage with insurers rated A- (A.M. Best) or better, or an equivalent rating recognized in the applicable jurisdiction:

The CGL policy should cover bodily injury, property damage, personal and advertising injury, and products/completed operations.

Naming Levy as Additional Insured

Operators are required to name Levy Electric Inc. and its affiliates, officers, directors, and employees as additional insureds on the CGL policy on a primary and non-contributory basis, where available under the policy or by endorsement, with respect to claims arising from the operator's local operations under the agreement.

Additional-insured status under a CGL policy is the standard mechanism for backstopping the operator's contractual indemnity to Levy with real insurance dollars, separate from (and in addition to) the indemnity language itself.

Certificates of Insurance

Upon Levy's request, operators must provide a Certificate of Insurance evidencing the coverage above. For additional-insured status, Levy may also request the applicable additional-insured endorsement; a COI alone does not satisfy the additional-insured requirement unless it is accompanied by, or specifically confirms, a blanket endorsement that applies to the service agreement.

Operators must promptly notify Levy after receiving notice of cancellation, non-renewal, or material reduction in coverage, and must use commercially reasonable efforts to have their insurer provide Levy with advance notice where available.

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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Insurance Resources

Some operators have used the following broker for fleet-specific coverage:

• Christensen Group — christensengroup.com — Experience with micromobility and fleet operations

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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 either:

• The operator carrying its own CGL coverage, or
• The mutual indemnification described above.

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 own CGL carrier — your insurer needs prompt notice to preserve coverage; this is true 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 the operator's CGL policy.
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.