Commercial Auto Insurance Policies

f you’re using your motor vehicle for a commercial purpose, you’ll need commercial auto insurance. Check your personal policy. Commercial use of your vehicle is excluded. That’s because commercial use of a vehicle is deemed to have different risks for insurance companies. Quite simply, commercial vehicles are on the road more often and participate in broader uses than personal vehicles.

Certain vehicle types and uses are excluded from coverage under personal auto policies. Commercial vehicles might be automobiles, vans, pickup trucks or any other type of truck. They might be used by contractors, repairmen, haulers or even the kid making deliveries.

Personal policies and commercial policies are written and rated differently. Although coverage between the two might be substantially similar, commercial policies are designed to address certain unique needs and circumstances. First, they cover employees in their use of the vehicles of the business. They also cover equipment and the loading and unloading of goods or products. Most importantly, commercial insurance covers a business should it be named as a defendant in a lawsuit resulting from the use of one of its commercial vehicles.

If you’re involved in an accident and engaged in commercial activity with a vehicle that’s insured with a personal policy, your auto insurer can deny coverage. A commercial policy would call on the insurer to defend the lawsuit and pay any damages awarded to the extent of your policy limits. That defense includes attorneys appointed by the insurer to defend you at no cost to you beyond your deductible. Denial of coverage would result in you being required to pay your own attorneys to defend the lawsuit and pay out-of-pocket for any settlement or verdict yourself. That can mean hundreds of thousands of dollars, putting you out of business. All of your assets could be seized and sold. Those could include your personal assets too.

Commercial vehicles are vital to your business and personal livelihood. Pay attention to the type of insurance you need. Even if you use only one vehicle in your business, you’ll want to make sure you have the right insurance.

Flood Insurance Policies

From 2008 to 2012, average residential flood claims came to more than $38,000 each, some from just a few inches of water. Water can get in everywhere and into anything, potentially causing overwhelming financial loss over a mere rainstorm. Flood insurance exists to make sure you don’t ever have to face that level of financial hardship. Some homeowner’s or renter’s insurance will not cover flood damage, and so a separate policy must be bought in order to cover any potential water damage.

Can be bought by homeowners (and condo owners), renters, and commercial owners or renters. The type of situation you have will determine what kind of insurance and how much coverage you decide to get. Also, this kind of insurance can only be purchased through an insurance agent and not directly from the government.

If your property is flooded, the policy will pay for any damages that fall under the amounts that are stipulated in the coverage. Like all insurance policies, the higher premium you pay, the more benefits you will receive. The cost will also be higher if the property is a flood risk, such as being in a flood plain or close to a body of water, even one as small as a stream. There is a 30-day waiting period from the date of purchase to when the policy is activated, and any flooding that occurs in that time period will not be covered (with some exceptions).

All policies will cover building structure and contents, but not all will include personal property. To get full contents coverage, talk with your agent about expanding your plan. Additionally, property and belongings outside of the insured building, such as swimming pools, hot tubs, patios, septic systems, etc., will not be covered by a standard policy, and if your home is unlivable after a flood, it may not pay for temporary housing.

This specialized insurance can cover any kind of water damage, from a major flood all the way down to a minor leak. Water damage can be extremely pricey, and you don’t want to lose your house because you couldn’t pay the potentially tens of thousands of dollars to repair it. Don’t risk it; buy flood insurance today.