Business Auto Insurance
Auto liability for design firms can be in the form of coverage for a fleet of service vehicles operated during business hours, owned automobiles operated by principals and partners, as well as coverage for the firm for employee-owned vehicles operated during business hours, commonly referred to as hired and non-owned auto liability coverage. For company-owned vehicles, a stand-alone business auto policy is required. Hired and non-owned auto liability coverage can sometimes be added to a business owners policy but may not provide the same level of physical damage coverage you would see on an auto policy.
What does Commercial Auto Insurance cover? - Commercial auto insurance, like your personal auto policy, provides similar coverages such as liability, collision, comprehensive, medical payments (or personal injury protection) and uninsured motorists coverage to firms. However, there are also differences between a commercial auto insurance policy and your personal auto policy that may include eligibility, definitions, coverages, exclusions, and limits.
Most Commercial auto policies are "named driver only" policies, meaning only those drivers listed on the policy can operate a covered auto.
What are the coverages?
- Bodily injury liability coverage – pays for bodily injury or death resulting from an accident for which you are at fault and provides you with a legal defense.
- Property damage liability coverage – provides you with protection if your car accidentally damages another persons property. It also provides you with a legal defense.
- Combined single limit (CSL) – Liability policies typically offer separate limits that apply to bodily injury claims for property damage. A combined single limits policy has the same dollar amount of coverage per covered occurrence whether bodily injury or property damage, one person or several.
- Medical payments, no-fault or Personal Injury Coverage – usually pays for the medical expenses of the driver and passengers in your car incurred as a result of a covered accident regardless of fault.
- Uninsured motorist coverage – pays for your injuries and, in some circumstances, certain property damage caused by an uninsured or a hit-and-run driver. In some cases, underinsured motorist coverage is also included. This is for cases in which the at-fault driver has insufficient insurance.
- Comprehensive physical damage coverage – pays for damage to or replacement of your car from theft, vandalism, flood, fire, and other covered perils.
- Collision coverage – pays for damage to your car when it hits or is hit by another object.
Providing Commercial Auto Insurance for Design Firms
With many different options, commercial car insurance can be confusing. Many firms who own vehicles will have plenty of options available to them for this coverage, but it is also important to make sure the coverage is compliant with your contractual obligations. Firms with no owned vehicles may still have to provide proof of auto liability coverage, which can be a bit more limited. We can help you with all your business insurance needs, including auto liability to make sure your program is not only comprehensive enough to account for your risk profile, but compliant with your professional services agreements too.