The purchase of your West Hollywood business automobile insurance is not as simplified as the purchase of your personal automobile insurance policy. Aside from the liability to insure you against claims of bodily injury and property damage to a third party for which you are legally liable, you do need to get comprehensive and collision coverage in your business automobile insurance to protect your own vehicle in the event of a loss. There are several important endorsements you want to consider when you purchase your West Hollywood commercial automobile insurance.
8 Types of Business Auto Coverage Options
When you are buying a business automobile insurance, you should know the types of different coverage options and the conditions they entail:
1. Hired Business Automobile Physical Damage Coverage
The Hired Business Automobile Physical Damage coverage endorsement will have a limit per unit or vehicle for the physical damage (comprehensive and collision damage) to a vehicle you hire. Be sure to check the limit, generally $50,000, before you rent a high-value automobile.
2. Non-Owned Business Auto Liability Coverage
Non-Owned Business Automobile Liability coverage is used when you have employees who use their personal vehicles on your company business, even if the exposure is so slight that it only entails errands such as picking up mail or buying office supplies. The endorsement does not replace the employee’s liability insurance. It protects you as the employer if you are named in a claim as a result of your employees’ negligence.
3. Employee Hired Auto Endorsement
The Employee Hired Auto endorsement requires that hired auto coverage for both liability and physical damage coverage is in force. The endorsement is to be used when employees hire vehicles in their own name, rather than the company name and the hired auto is used for business purposes at the direction of the employer. The effect of the endorsement is to make coverage for these autos primary, rather than excess.
4. Rental Reimbursement
Rental Reimbursement includes loss of use of the rental vehicle by the car rental company. The business car insurance cost per day to rent a vehicle is provided in the policy. However, if the rented unit is damaged or destroyed in your care, custody, and control, you can be held liable for the loss incurred by the rental car company for the time the vehicle was not in use due to repairs or replacement of the unit.
5. Auto Loan Physical Damage
Auto Loan Physical Damage Extension is an endorsement that provides coverage for the difference of the actual cash value of the damaged vehicle and the amount of the loan balance of the unit.
6. Auto Lease Gap Coverage
Auto Lease Gap Coverage is similar to the above-mentioned auto loan physical damage endorsement. This applies when the vehicle is leased, rather than purchased.
7. Employees as Insureds
Your employee is considered an insured under your policy while they are using a covered auto not owned, hired, or borrowed for business or personal affairs. Lacking this endorsement to your business automobile policy will exclude coverage for the liability of an employee if the covered auto is owned by that employee. The endorsement is called Employees as Insureds.
8. Fellow Employee Exclusion
The Fellow Employee Exclusion is a coverage you should purchase. This provides employees with the business automobile liability insurance coverage for their use of the company and personal autos in the course of their employment in the event of an injury to a fellow employee.
Talk to your professional insurance agent at Makar Technique Insurance Agency about how to protect your business with the right business automobile insurance.