Coverage For Business Autos

Coverage For Business Autos

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Many businesses are exposed to the financial consequences of their ownership, use or maintenance of vehicles that are used in their operations. Most coverage needs can be handled by a business auto policy (BAP) or similar form. BAPs may cover a variety of operations, including the following:

· Product or food delivery

· Transporting business products to wholesalers or retailers

· Retail product delivery to consumers

· Carrying persons for short, intermediate or long distance routes

· Picking up customer items for cleaning, repair, storage, etc.

Coverage is flexible. It may be purchased as a separate policy or as part of a package of coverage that can also protect buildings and business property (equipment, furniture, etc.). A BAP generally offers:

Liability Coverage – protection for physical injury to other persons or their property because of an accident related to your covered vehicle, including legal defense cost or expense.

Comprehensive Coverage – handles loss from any cause except collision. A limited, less expensive option is available. It only protects against a set of specific causes such as fire, lightening, explosion, vandalism and several others

Collision – takes care of damage from crashes with another object or overturn of the vehicle

Towing And Labor Costs –handles expenses for moving disabled vehicles

Loss of Use—Rental Vehicle Coverage – if you damage a rental car, this option helps to reimburse the rental company for income it loses because the vehicle is out of use. Also, there may be limited coverage for injury or damage that you cause to others while using a rented vehicle anywhere in the world.

Business Auto Policy Exclusions

Typically, a business auto (or similar form) will not provide coverage for the following:
· any injury/damage that you expected or intended

· responsibility for damage you assume under a contract

· losses that should be handled by a Workers Compensation, Disability Benefits or Unemployment Compensation Law

· Bodily Injury to an employee caused by a Fellow Employee

· Damage to property that is in your Care, Custody and Control

· Any bodily injury or property damage that occurs because of Pollution

· Any loss that is related to racing, demolition or stunts

Other items that are not covered are the same as those found with most types of policies, such as Nuclear Hazard or any type of War or Military Action. Racing, Wear and Tear, Freezing, Mechanical or Electrical Breakdown, Blowouts, Punctures or Other Road Damage to Tires are also excluded.

Are you protected against business auto losses? Drive over and discuss your situation with an insurance professional. The trip will be worth it.

Motorcycle Insurance – Part Two

Though not, typically, as expensive as cars, motorcycles still are a large investment and should be protected by insurance, particularly when money has been borrowed in order to buy them. Below are typical coverages that apply either to the vehicle or to those operating the vehicle:

Collision coverage – This covers damage to your own vehicle that happens when your vehicle runs into another object, such as other vehicles, trees, light poles, mountains, etc.

Other Than Collision coverage – This also covers damage to your own vehicle that is due to sources such as fire, theft, hitting an animal, vandalism, earthquake, flood or hail.

Unlike liability coverage, both Collision and Other Than Collision coverages are subject to deductibles, the amount of a claim that the policy owner must pay. Deductibles are meant to eliminate an insurer having to pay for very minor losses.

Special Parts and Accessories – This coverage may be part of a cycle insurer’s basic coverage or, quite often, an optional coverage. Typically it pays for loss involving damage to custom equipment that is added to a cycle rather than what is provided by the cycle manufacturer.

Medical Payments – This coverage typically handles medical expenses for injuries to you while operating your cycle.

Roadside Assistance – This coverage is to help pay for your costs to deal with a disabled cycle, helping to pay for it to be transported to a location for repairs of to assist with the cost for any repair or service that occurs at the location of the cycle’s breakdown. However, this coverage is for labor rather than the costs of parts.

Remember the above information only touches upon some typical insurance issues. It’s always wise to contact your agent and discuss your coverage questions and needs in detail. Please also be sure to read part one of this discussion.

www.allianceinsuranceagency.com

Motorcycle Insurance – Part One

Motorcyclists make up a small fraction of the vehicles that occupy our roadways and, due to weather conditions and changes of seasons, the number of cycles in operation changes drastically throughout the year. While motorcycles operators and their driving considerations are quite different than persons operating other, larger, enclosed vehicles; there is one, major similarity…..the need for insurance protection. Most states have financial responsibility laws requiring you to carry proof that you are able to pay for any damage or injury you may cause while driving. Auto insurance is the way that most people comply with these laws. Typically, drivers are required to carry liability insurance at some minimal limit that varies by state. Liability coverages include the following:

Bodily Injury Liability – This covers injury that you may cause to other persons. The key is that it involves you being held financially responsible for injuries to other persons because of your driving, your ownership or other use of your vehicle. This coverage does not apply to any injuries you may suffer.

Property-Damage Liability – This handles damage that you may cause to another person’s property. Again, the coverage only responds when you are financially responsible for such damage and it has to be related to your driving, use or ownership of a vehicle.

Uninsured Motorist Coverage – This coverage typically pays for injury you suffer from an accident caused by an uninsured driver. “Uninsured” usually refers to a person who has no insurance; a person who can’t be located (“hit and run drivers”); a person who has insurance but their insurance company is insolvent; and other situations (defined by individual state laws). Important: Payment under this coverage is controlled by the limits mandated by a state’s financial responsibility or specific uninsured motorists law that often dictates what limit or limits must be sold. In some states, you may have an option to reject the coverage. Typically, the rejection must be in writing.

Underinsured Motorist Coverage – This coverage typically pays for injury you suffer from an accident caused by an inadequately insured driver. “Underinsured” usually refers to a person who has insurance; but at an amount that is insufficient to cover all costs of the loss the or she has caused.

Remember that this is merely an introduction to complex policy coverages. Be sure to contact your agent for detailed insurance information. This is the first part of our discussion of typical motorcycle insurance coverages. Please also see Motorcycle Coverage – Part Two.

In-Home Businesses – Part Nine

Many different activities are routinely run out of homes. This discussion reviews aspects of particular operations. See part one for background information on coverage basics as well as the other parts discussing different businesses.

Repair: Auto, Bicycle, Boat, Tractors, Furniture, etc.

Don’t expect your homeowners policy to give you coverage. Repair businesses work on personal property belonging to others. Your business probably will need to be insured by the individually designed commercial package policy or similar specialty form. Coverage for inventory, repair machinery, property of others, business income coverage after a fire or other covered cause of loss, and premises and products liability coverage can be built into your policy.

Look for a company that will write your size business. Make sure you consider the impact of products liability claims, coverage for goods that you are working on that belong to others whether at your business, in transit, at another processor or at your customer’s location.

You will need workers compensation coverage for any employee – even part timers. You may need commercial automobile insurance if you deliver anything or if your vehicle is larger than a car, van or small pickup, or if the vehicle is owned by a corporation.

Work on autos will require an Auto Garage liability policy for the on-premises bodily injury, and Garagekeepers liability coverage to protect you against claims for damage to customer vehicles.

Racing: Car, Boat, Motorcycle, RV, Truck, etc.

If you are involved in racing vehicles or craft and, especially if you operate a business in building, servicing or repairing vehicles or craft from your home, you can not rely on your homeowners policy for either liability or property coverage.

Coverage for damage to actual equipment that is raced is seldom covered. You will want to check with your agent or your racing association for coverage for shop equipment, portable tools, travel trailers and other equipment related to your racing hobby or business. You will also need liability coverage or, at a minimum, be sure that the racetrack has spectator liability coverage that applies to your race participation, including practices.

Racing Repair Business – Your business may need to be insured by an custom designed commercial package policy that may need to include coverage for inventory, repair machinery, property of others, business interruption, workers compensation (even for part-time employees) and premises and products liability

It’s critical to identify if you need coverage against products liability claims that can arise from customer property you have worked on at your business, which may be transit, located at another processor or at your customer’s location. An Auto Garage liability policy may be necessary to handle any on-premises bodily injuries and a garagekeepers liability form can protect you against claims for damage to customer vehicles.

You may need commercial automobile insurance if you make deliveries, have a commercial-size vehicle, or if the vehicle is owned by a corporation.

www.allianceinsuranceagency.com

In-Home Businesses – Part Eight

Many different activities are routinely run out of homes. This discussion reviews aspects of particular operations. See part one for background information on coverage basics as well as the other parts discussing different businesses.

Farms and Ranches

The homeowners program can be endorsed to cover some aspects of hobby or “gentlemen” farms, including farm liability and livestock collision.

Farming for profit will require a Farm or Ranchowners policy. Farm and Ranchowners forms can cover your dwelling, barns, sheds, silos, cribs and other buildings, machinery and equipment, supplies, liability coverage, additional living expenses after a fire or other covered cause of loss; some policies can be endorsed for livestock mortality. Crop insurance is a federal program, but local farm insurance specialists can provide crop hail and crop damage coverage. Your agent should help you design an insurance program that meets your specific needs.

You may own property that previously was used as a farm. Farm insurers understand rural homesteads. You may find better protection from an agent and company who specializes in rural and farm property. If you have large barns or other outbuildings, you may need to increase other structures coverage under your homeowners insurance or convert coverage to a Farm or Ranchowners policy. If you lease land to others for grazing or crops or hunting, you will need to add separate liability coverage to your Home or Farmowners policy.

Workers compensation laws for agricultural employees vary in each state. Each state has special rules for hired hands and migrant workers. Even if you are not required to carry workers compensation coverage for a specific employee, you may still be responsible for any-work related injury to that employee.

Farm vehicles normally can be covered through a personal automobile policy. Incorporated farms may require a commercial automobile policy.

I always welcome relevant comments or feedback.

www.allianceinsuranceagency.com

In-Home Businesses – Part Seven

Many different activities are routinely run out of homes. This discussion reviews aspects of particular operations. See part one for background information on coverage basics as well as the other parts discussing different businesses.

Manufacturing

Manufacturing businesses cannot normally be insured by a Businessowners policy.

Find an agent and company that specializes in the kind of product you manufacture. Look for a company that will write your size business. Make sure you consider the impact of products liability claims, coverage for your products while they are in transit or at other processors, and products belonging to others that you are working on, whether at your business or at their location.

You will need workers compensation coverage for any employee – even part timers.

You may need commercial automobile insurance if you deliver anything or if your vehicle is larger than a car, van or small pickup or if the vehicle is owned by a corporation.

Contracting

Many companies have excellent “artisan” insurance packages for the small to medium subcontractor. Ask your agent to show you different artisan packages so that you can choose a program that fits your needs. Coverages may be similar among artisan packages, but rating plans vary. Some companies charge rates based upon payroll, sales or number of employees. As your business grows, you will want to ask your agent to shop your coverage to see whether it is to your advantage to change from one rating formula to another.

If you are a general contractor, you will need to work with an agent who specializes in general contractors. Contact your local builders association. Many builders associations will sponsor programs or know of agents who specialize in general contractors.

You will need workers compensation coverage for any employee – even part timers. If you hire any subcontractors, understand that you may be responsible for any injuries to subcontractors or their employees while they work for you. Make sure that you have certificates of insurance from each of your subcontractors for workers compensation, general liability and automobile insurance. It is to your advantage if your subcontractors have liability limits of insurance at least equal to your own.

You may need commercial automobile insurance if you deliver anything or if your vehicle is larger than a car, van or small pickup or if the vehicle is owned by a corporation.

I welcome relevant feedback

www.allianceinsuranceagency.com

In-Home Businesses – Part Six

Thank you again for your continued interest in my blog. I think I have got some people brainstorming on an in home start up.

Many different activities are routinely run out of homes. This discussion reviews aspects of particular operations. See part one for background information on coverage basics as well as the other parts discussing different businesses.

Service

The following are the most commonly insured service classes of business by a Businessowners policy. The Businessowners policy provides broad coverages for buildings, personal property, loss of business income and extra expense incurred to remain in business (after a fire or other covered cause of loss), premises liability and medical payments. If you have more than $1,000 of goods off premises in transit, you will need to add additional coverage. Goods stored at other locations must be added to the policy.

The following are the most commonly insured service classes of business by a Businessowners policy. If your service business is not on this list, it probably will need to be insured by the individually designed commercial package policy or similar specialty policy.

Appliance and Accessories – installation, servicing or repair – Commercial or Household
Bakeries (with baking on premises)
Barber Shops and Beauty Parlors and Hair Styling Salons
Dental Laboratories
Engraving
Funeral Homes or Chapels
Laundries and Dry Cleaning or Dyeing Receiving Stations
Lithographing
Mailing or Addressing Companies
Photocopy Services
Photo-engraving
Photographers
Printing
Shoe Repair Shops
Tailoring or Dressmaking Establishments-Custom
Taxidermists
Television or Radio Receiving Set Installation or Repair
Watch, Clock and Jewelry Repair
If you cannot qualify for a Businessowners policy, your agent will probably have to build a special commercial package policy to meet your needs. You will need a competent commercial lines agent to help you. Commercial lines agents have both the expertise to design the appropriate coverage and the markets for your service business.

You will need workers compensation coverage for any employee- even part timers.

You may need commercial automobile insurance if you deliver anything or if your vehicle is larger than a car, van or small pickup or if the vehicle is owned by a corporation.

Again I Thank You. I always welcome feed back relative to the blog information. So leave your comments and tell me what you think.

Chad Buchheit
www.allianceinsuranceagency.com

In-Home Businesses – Part Five

I have had record hits to these blogs regarding In-Home Business. Thank you for your continued interest. Maybe i got some minds stirring on a startup.

Many different activities are routinely run out of homes. This discussion reviews aspects of particular operations. See part one for background information on coverage basics as well as the other parts discussing different businesses.

Retail – Persons with in-home retail operations must look beyond an HO policy for coverage.

The Businessowners policy provides broad coverages for buildings, personal property, loss of business income and extra expenses incurred to remain in business (after a fire or other covered cause of loss), premises liability and medical payments. If you have more than $1,000 of goods in transit, you will need to add additional coverage. Goods stored at other locations must be added to the policy, normally as an additional location.

You will need workers compensation coverage for any employee – even part timers. You may need commercial automobile insurance if you deliver anything or if your vehicle is larger than a car, van or small pickup or if the vehicle is owned by a corporation.

Wholesale – As a wholesaler, here are some coverage options for your consideration:

Businessowners Policy – If you are a manufacturer’s representative with limited inventory, some insurance companies will cover your business with the Businessowners policy, commonly called a BOP. The BOP provides broad coverage for buildings, personal property, loss of business income, extra expense incurred to remain in business (after a fire or other covered cause of loss), premises liability and medical payments.

If you have more than $1,000 of goods off-premises in transit, you will need to add additional coverage. Coverage for goods stored at other locations must be added to the policy.

Commercial Package Policy – If you cannot qualify for a Businessowners policy, your agent will probably have to build a special commercial package policy to meet your needs. You will need a competent commercial lines agent to help you. Commercial lines agents have both the expertise to design the appropriate coverage and the markets for your wholesale business.

Workers Compensation – You will need workers compensation coverage for any employee – even part timers.

Commercial Auto Policy – You may need commercial automobile insurance if you deliver anything or if your vehicle is larger than a car, van or small pickup, or if the vehicle is owned by a corporation.

In-Home Businesses – Part Four

Many different activities are routinely run out of homes. This discussion reviews aspects of particular operations. See part one for background information on coverage basics as well as the other parts discussing different businesses.

Daycare or In-Home Schools

Coverage for abuse or sexual assault for small schools is often difficult to obtain at a reasonable price. Limited corporal punishment coverage for teachers who are employed by a school system may be available from your homeowners carrier. If you are an independent tutor or run your own school, most homeowners policies cannot be modified to include corporal punishment. Abuse and corporal punishment may be available through the association(s) that specialize in your type of school.

While the company that writes your HO policy may be willing to add an endorsement to cover piano lessons, most will not want to cover a three-to-five child daycare operation. Liability coverage may be purchased separately. Coverage for property and liability can be provided through a Businessowners policy, but none of these forms includes professional liability or abuse or corporal punishment.

Specialty schools, such as ballet, sports, personal training, animal training, or horseback riding will require specialty coverage. Again, your trade organization, or independent agent can often find you coverage at a reasonable price.

Workers compensation is essential for any person you employ.

Driving students in private vehicles or bus-like vehicles poses special problems. You must hold a Commercial Driver’s license if you haul more than 16 people including the driver. Your school is probably too small to qualify for standard business auto insurance. If standard coverage is unavailable, many states have assigned risk pools and other mechanisms to provide you coverage-sometimes at reasonable prices. A good independent agent will understand these markets.

Your state will also have laws regulating the transportation of students and these laws may require a special license when transporting fewer than 16 people. Subcontracting the driving does not lessen your responsibility for a whole raft of laws from vehicle accidents, workers compensation, ADA, and whether the driver has met the new substance abuse requirements.

In-Home Businesses – Part Three

Many different activities are routinely run out of homes. This discussion reviews aspects of particular operations. See part one for background information on coverage basics as well as the other parts discussing different businesses.

Landlord

The homeowners policy is designed to cover landlord occupied residential buildings, landlord owned personal property, loss of rents (after a fire or other covered cause of loss), premises liability and medical payments. Note that the maximum occupancies that may be covered under an HO policy is a four-family dwelling. A dwelling policy may be used for 1-4 family structures that are not also occupied by the landlord.

For landlords with residential property containing from five to sixty units, the Businessowners policy is usually appropriate. It insures buildings, landlord personal property, loss of rents (after a fire or other covered cause of loss), premises liability and medical payments.

Most Bed and Breakfasts do not qualify for coverage either in the homeowners or dwelling insurance program. Bed and Breakfasts will require a combination of tenants coverage for the resident owner/manager, and a Businessowners policy to cover buildings, landlord owned personal property in boarders’ rooms, loss of business income (rents and fees) and the extra expense to operate (after a fire or other covered cause of loss), premises liability and medical payments.

For landlords who have office or retail tenants, the Businessowners policy provides broad coverages for buildings, landlord personal property, loss of rents (after a fire or other covered cause of loss), premises liability and medical payments.

Workers compensation is necessary for any employee. Talk with your agent. Most states require workers compensation for resident managers even if you provide only free lodging as payment. Make sure you have certificates of insurance for any subcontractors (painters, plumbers etc.) you hire to do work for you. If the subcontractor has no insurance, you may be responsible for the subcontractor’s work-related injuries.

Most personal automobile insurance will insure cars, vans, and pickups used in business – business use, artisan use. Larger trucks, backhoes and other contractors’ equipment will need separate coverage. Some contractor equipment can be covered by the Businessowners policy, some by an auto policy. Ask your agent how best to insure your equipment.