Liability
… covers injuries or damage to other people or property if you are at fault for an accident.
- Bodily Injury (BI)
- Property Damage (PD)
- Combined Single Limit (CSL) — provides higher limits for both BI and PD under one limit
- Uninsured/Underinsured Motorists — protects law-abiding drivers (and their passengers) from costs associated with injuries resulting from a car accident with an uninsured driver (or a hit-and-run)
- Medical payments (for states other than “no-fault” states)
- “No-fault” states (such as Michigan) require every car owner to buy certain basic coverages
- Personal Injury Protection (PIP)
- Property Protection (PPI)
- Residual Liability — Bodily Injury and Property Damage
It is always wise to purchase an Umbrella policy, which sits over the underlying limits of your Automobile Liability. This strategy protects your business financially by providing higher limits to cover the cost of catastrophic claims and lawsuits.
Physical Damage
… covers damage to your business autos.
- Collision
- Comprehensive
Other Common Coverage Options
- Towing and labor costs
- Rental reimbursement — for substitute transportation when your commercial auto is being repaired
- Hired and non-owned auto liability
- Hired and non-owned physical damage
- Drive Other Car coverage
Fleet Programs
Companies that own or lease more than five (5) vehicles for business purposes could find that a fleet auto policy is most cost effective. As opposed to a regular commercial auto policy where the value of autos drives the premium, a fleet program is evaluated with regard to risk and exposure, including the drivers of the vehicles. All drivers must be reported at inception and the policy must be updated each time drivers change. Another notable difference is that fleet insurance only provides coverage for liability, the scheduled vehicles, and the drivers — they do not include coverage for any company materials, tools, products, or other belongings that may be in the vehicle at the time of loss.
Garage Keepers Liability
Businesses that work on customers’ vehicles, such as providing repair, service, equipment installation, or parking, are faced with the risk of those autos being damaged or stolen. Garage Keepers Legal Liability insurance provides coverages for customers’ vehicles while in their care, custody, and control. This coverage has three options:
- Legal Liability — coverage applies to a customer’s vehicle for damage caused by the insured’s negligence (e.g. a vehicle left unlocked/unattended and was stolen)
- Direct Primary — coverage applies regardless of liability
- Direct Express — coverage applies regardless of liability, just as Direct Primary does. However, if the insured has no liability, the coverage will only pay in excess of any other available insurance.