AUTOMOBILE INSURANCE

Have you recently reviewed the completeness and accuracy of the vehicle list and garaging information in your Business Automobile policy? 

If you transport materials in an owned or leased vehicle that could cause a pollution incident if spilled or leaked from the vehicle, it is important to know that Business Automobile Liability insurance policies contain exclusions for liability arising out of pollution-related incidents involving vehicles.  It may be possible to have this exclusion modified by adding a Pollution Liability – Broadened Coverage for Covered Autos provision (form #CA9948). 

If you or your valuable employees have as the only vehicle(s) in their household vehicles insured under your Business Automobile policy, they will be losing the Liability insurance protection for their temporary use of other vehicles that they would receive under a Family Automobile policy.  This can be rectified by adding Broad Form Drive Other Car insurance to your Business Automobile policy for such employees. 

Does your Business Automobile insurance cover vehicles which are owned by or leased to individuals (as opposed to being owned by or leased to your business)?  If this is the case either those vehicles should be insured by a Family Automobile Insurance policy, or the individuals' names should be added to the Business Automobile policy as Individual Named Insureds.

Do principals or employees use their own vehicles in the conduct of your business?  If so, you may be exposed to vicarious liability for their negligent use of such vehicles.  Employer's Non-Ownership and Partnership Non-Ownership Liability insurance is available for such an exposure.  However, the addition of Employer's Non-Ownership and Partnership Non-Ownership Liability insurance only provides protection to the business entity itself.  If it is important to you that the principals and/or employees whose vehicles are being used be protected, then the Employees as Insureds endorsement (form CA 9933) needs to be added to your Automobile Insurance policy.  If employees rent or hire vehicles in their own name for use in the conduct of your business, then form #2054 (“Employee Hired Automobiles”) should be added to your Automobile insurance policy. 

Physical Damage for Hired Vehicles coverage is available as an enhancement to your Business Automobile policy to obviate having to purchase the physical damage waiver from a short-term car or truck leasing company. 

Do you own tractors which pull the trailers of others?  If so, Trailer Interchange Legal Liability insurance should be added to your insurance program. 

 Do you ship petroleum products, explosives or other clearly hazardous materials?  Do you own, lease or operate one or more trucks with a gross vehicle weight of 10,000 pounds or more?  If either of these is the case, you may be liable for damages under the Motor Carrier Act of 1980.  The Act includes a listing of more than 15,000 substances (including some very ordinary items or parts or ingredients of such items).  Please call us to ask about having an MCS-90 endorsement and/or a Pollution Buy-Back endorsement added to your Business Auto policy.