INSURANCE NEWS & INSIGHTS

Insurance companies commonly request Loss Runs before quoting Commercial Auto. Loss runs may show: Date of loss Type of accident Amount paid Amount reserved Open claims Closed claims Carriers frequently request several years of prior loss history. How Loss History Affects Commercial Auto Pricing Insurance companies evaluate both: Frequency How often claims happen. and Severity…

Commercial Auto Liability protects the insured business against certain covered claims resulting from ownership, maintenance, or use of insured vehicles. Coverage may include liability for: Bodily Injury Injuries caused to another person. Property Damage Damage caused to another person's property. A common commercial liability structure is: $1,000,000 Combined Single Limit although limits vary. The limit…

Illinois law generally does not require you to purchase Comprehensive and Collision coverage simply because you own a business vehicle. However, a lender or leasing company may require it. Comprehensive May cover qualifying losses involving events such as: Theft Vandalism Fire Hail Falling objects Glass damage Collision May cover qualifying physical damage caused by collision…

If a business vehicle is financed or leased, the lender or leasing company may require: Comprehensive Collision Specific deductibles Liability limits Loss Payee status Additional insurance requirements Provide the lender or leasing information to your agent.

A business may occasionally rent, lease, hire, or borrow vehicles it does not own. Commercial Auto policies may provide Hired Auto Liability when appropriately included. Examples can include: Rental vehicles Short-term leased vehicles Certain borrowed business vehicles Hired Auto Liability generally concerns liability exposure. Physical damage to the rented vehicle may require separate Hired Auto…

This is particularly important for businesses whose employees use their personal vehicles for company business. Examples: Employee goes to the bank Employee visits a customer Employee picks up supplies Sales representative visits clients Employee drives between business locations If the employee causes an accident while performing business duties, the business could potentially be brought into…

Businesses without company-owned vehicles sometimes believe they do not need any automobile coverage. That is not always true. A business can still have auto liability exposure when: Employees drive personal vehicles for work The business rents vehicles The business borrows vehicles This is why Hired & Non-Owned Auto Liability can be important even for a…

Employees using personal vehicles for work should maintain their own automobile insurance. The employee's Personal Auto policy is generally primary for their personal vehicle, subject to policy terms. However, some business uses can create coverage limitations. Businesses should establish clear policies for employees who drive personal vehicles for work. Consider requesting: Driver's license MVR Proof…

Businesses should establish written rules regarding use of company vehicles. Policies may address: Authorized drivers Personal use Family-member use Seat belts Cell phones Driving under the influence Accident reporting Vehicle maintenance Overnight garaging Permitted territories Good fleet-management practices can also improve insurance underwriting.

If employees are allowed to take business vehicles home or use them personally, tell the insurance company. Personal use can change the exposure. The insurer may ask: Who takes the vehicle home? Who else can drive it? Where is it garaged? How much personal use occurs? Are family members permitted to drive? Never assume personal…