Do you have a vehicle titled to your business?

Well then you need the same kind of coverages for the car you use in your business as you do for a car used for personal travel -- liability, collision and comprehensive, medical payments and coverage for uninsured motorists.  Since many business people use the same vehicle for both business and pleasure, you need to be sure that you are properly insured.

If the vehicle is owned by the business, make sure the name of the business appears on the policy as the "named insured" rather than your name. The “named insured” is the most important part of an insurance policy.

What types of driving do you do for your business?
Whether you need to buy a business auto insurance policy will depend on the kind of driving you do.

For example, if you make deliveries of food you’d need commercial auto rated for “commercial” use. If you’re a drywall contractor primarily going to job sites and keeping the vehicle parked all day you can use “service” use with many companies. Both types have different rates.

Your insurance agent needs a lot of information about your business to properly write you a commercial auto policy that protects you and does its job. Some of the information includes:

-          Who drives the vehicles?

-          Do employees use their own vehicles for the business?

-          What is the radius of operation?

-          Do you use a time guarantee on deliveries? Do you haul “for-hire?”

-          Do you have a maintenance plan in place?

While the major coverages are similar, a business auto policy differs from a personal auto policy in many respects.  

General Liability

If you have a personal liability policy, there's generally an exclusion for business-related liability issues.

For every business owner, the chances of getting sued have increased over the past several years. General Liability insurance can prevent a lawsuit from turning into a financial catastrophe by providing financial protection in case your business is ever sued or held legally responsible for some injury or damage.

General Liability protects you from claims of alleged bodily injury, property damage, or personal injury on your business premises or arising from your operations.

General Liability offers:

  • Bodily Injury, including the cost of care, the loss of services, and the restitution for any death that results from injury
  • Property Damage coverage for the physical damage to property of others or the loss of use of that property
  • Products-Completed Operations provides liability protection (damages and legal expenses up to your policy's limit) if an injury ever resulted from something your company made or service your company provided
  • Products Liability is a more specialized product liability insurance that protects your company against lawsuits from product-related injury or accidents
  • Contractual Liability extends to any liability you may assume by entering into a variety of contracts
  • Other coverage includes: Reasonable Use of Force; Borrowed Equipment; Liquor Liability; Non-Owned Vehicles (such as aircraft and watercraft); Fire, Lightning or Explosion Damage; Water Damage Liability Protection; Legal Defense Costs; Medical Payments; Personal Injury; Advertising Injury; and specialized liability protection for specific business types
Posted 1:22 PM  View Comments

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