Taxi drivers in St. John's say they're facing another steep increase in their insurance rates that could possibly put some companies out of business.

Facility Insurance, the cab industry's insurer, has applied to the Public Utilities Board for a 50 per cent rate increase, coming on the heels of a 50 per cent increase in 2013.

Doug McCarthy, general manager of Co-Op Taxi, said the consequences for cab drivers in the city would be dire.

"We know we're in a high-risk business, but we can't afford to accept it. It would bankrupt a lot of companies," he said.

McCarthy said while he accepts the general nature of the industry, the approval of the request would leave a big black hole.

He added if the insurance rates were increased again, taxi fares would double if cab companies passed the increase on to consumers.