Contractors Insurance Auto Risks Can Sink You Fast |
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Articles - Commercial Auto Insurance | |
Automobile Risks can sink you fast!You think nothing of tossing the keys to the pickup to your fellow contractor and telling him to go to the "HOME DEPOT". But THINK AGAIN—You might as well load the front end of the truck with your house, savings, business and kid's college fund—IN CASH—and then let Moe, Larry or Curly head out for the open highway! Your autos are probably the single largest exposure to loss you have. Each time your autos go down the street (regardless of who is driving the vehicle) your entire bank account rides with it!Contractors Insurance - Owned Auto Risks
There are three basic exposures in addition to owned autos, which are non- owned autos, hired autos and borrowed autos.
Limits, Limits, Limits Put the armor where the bullets are coming from: You get certificate requests almost every day — they always ask for Business Liability with $1,000,000 limits and Workers Comp. They almost NEVER mention auto liability. THAT'S NOT BECAUSE IT'S NOT IMPORTANT! IT'S BECAUSE ITS' NOT IMPORTANT TO THEM! Because no one bugs you for auto limits - you tend to skimp on it. DON'T DO IT! It's your neck, your assets and your future — PROTECT YOURSELF! *TIP — Be careful of where your autos stay at night. This is for real — You can use you autos in Dallas or Houston all day long, but they will be priced based on where they are "garaged," or where they stay at night. If your autos go home to a suburban county at night, be sure your policy says so. THIS IS NOT CHEATING—THIS IS PLAYING BY THE RULES!Now—you must manage your drivers. Let it be know that you don't tolerate irresponsible driving of any auto AND that you reward good drivers. Be willing to pay a bonus for clean driving records. It will pay off big time for you in the long run! Do not lie! Insurance companies will review your entire file — back to the original application—if there is a serious claim. If they can find a MATERIAL item that you lied on they will try to deny the claim. This begs the question, "What is a MATERIAL item?" The answer will depend on the company, the adjuster, case law and THE SIZE OF THE CLAIM. In my opinion, if you lie about things like who drives the autos, how they are used or the size and weight of the auto — you might find yourself in a world of hurt. It's almost impossible to defend a lie. Don't try to fit a square peg. If you need a personal auto policy — get one. Don't try to force a Business Auto Policy to do that job. Don't try to hide your 17-year old daughter with tickets and a new cherry red Corvette on your business policy — cater your policies according to a realistic standard.
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