Business Auto Insurance

Accidents happen. Will your business have the protection to sustain a personal injury lawsuit from an auto accident? Most people perceive auto insurance to be the same whether it is a personal policy or a business policy. This could not be further from the truth. The basic components of each policy are the same, Liability, Medical Payments, Un/Underinsured Motorists, Comprehensive and Collision; however, how and when these coverage’s are applied are vastly different. Each of the following statements could present an exposure that the business auto policy does not automatically provide coverage for. Click on each one to see if your business auto policy would afford protection.

• "Occasionally, I rent a vehicle to help transport equipment to the jobsite."

If you are renting a vehicle in the business name, you must have the Hired Auto Liability endorsement put onto your policy. This typically only covers the liability that you assume while driving the rented vehicle. To protect yourself from having to pay for damages to the rented vehicle after an accident, the Hired Auto Physical Damage endorsement needs to be added.

• "I have my employees run business errands with their own car."

If your employees use their own car for business activities (going to the post office, meeting with clients, etc.) your organization can be dragged into a lawsuit if that employee injures or kills someone else in an accident. Your business auto policy must have the Non-Owned Auto Liability endorsement added to it for protection against this exposure.

• "I don't have a personal auto policy, because my business auto policy will pay for an accident that I have with someone else's car."

If you do not have a personal auto insurance policy and get into an accident while driving someone else’s car, your business auto insurance policy will not protect you unless there is an endorsement added onto the policy called Drive Other Car Coverage.

• "The decals and ladder racks are part of my truck; my business auto policy will pay for these if I get into an accident."

Any custom parts or additions that you install onto the vehicle will not be covered by your business auto policy; unless the insurance company was notified before the accident occurs.

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