subject: Personal Vehicle Insurance Vs Commercial Auto. Coverage Variances And Commonalities [print this page] The insurance insurance firm's duties to defend or settle will surely end when the insurance contract limits have been used up by the payment of judgments or settlements. For example, if more than 1 people are harmed in an auto crash, and the insurance provider uses up the policy limits in lawsuits or out-of-court settlements on the first one, the business will have to pay the cost of the judgment, if any, to the second injured case.
The main differentiation between personal auto insurance and business automobile is the purpose for which the vehicle was designed to be utilized, and the real use of the auto. A vehiclethat is manufactured for business purposes (tow truck) is a commercial automobile. A car that is utilized in the course of doing business (personal small car used to deliver Chinese food is classified as a business auto. Automobiles that are developed for business use or are being used for business intends mandate commercial automobile insurance. Personal autos need personal car insurance.
Insurance coverage for liability claim exposures connected to owning & operating automobiles and trucks is a section of the commercial auto insurance policy. The casualty section of the commercial auto insurance contracts demands the insurance firm to pay all damages that the insured people are legally obliged to pay due to bodily injury or property damage brought by an accident or because of bodily injury or property damage resulted from the ownership, care or use of a covered vehicle. For sure, the coverage will be confined to the auto contract's casualty limits spelled out on the dec pages of the insurance policy.
The initial moment is a superb insurance producer, one who invests the hard work & who takes the time to examine your business activities. Keep away of an insurance representative who, without knowing the details of your business, tries to market to you some package plan, without looking at other alternatives. The insurance industry has developed some very good packages that cover the basic needs of many trucking businesses. Your insurance producer must ask a lot of questions and systematically comprehend your industry and operations. You should always insist on having someone who is capable of knowing your needs.
Independent insurance representatives can be of further help here. You want a producer whos not a captive/ hostage to a particular insurance carrier. The broker should be ready to obtain quotes from many insurance companies so that you do not pay more than what is fair. He/ she should also have knowledge and thoughts of exactly what your insurance policy entails.
Punitive Damage Are Not Valid Under Automobile Contract. In some of states, the auto plan is not permitted to cover punitive damage awards. But then even in states where insurance for punitive damages is allowed, the auto insurance plan may exclude them specifically. Punitive damages are occasionally imposed when their is sever recklessness or alcohol consumption where the operator was drunk or was operating a vehicle recklessly.
Anytime there are auto liability lawsuits against the insured business, where the loss is covered by the policy, the insurance company is required by contract to defend the business, its owner, and it offices; or to settle the lawsuit. Insured people cannot decide here. The policy leaves the decision up to the insurance company about whether to defend or settle a particular lawsuit. This is not the case in some other liability insurance, such as professional liability, the insured has to consent to settling a claim!
by: john l Ellis
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