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Risky Business

Why you carry a Commercial Policy vs Personal...

By Shelly Benisch
Posted Oct 12th 2009 4:56AM

Ever wonder why you can't use your personal auto insurance for your Expediting operations?  Last week I had a call from a great client.  One of his drivers' was broadsided by another Expediter...what's the chances?

Thinking the Expediter who hit him had his own Commercial Auto Policy, we assumed that insurance company would pay out.  Several days went by, which is strange, because insurance companies like to close up anything that can have a medical claim as soon as possible before the attorneys come a 'knockin.

I called the insurance company to see what was up, and it turned out that Expediter who caused the accident was only carrying Personal Auto Insurance on his Cargo Van, not Commercial.  The company, per insurance contract for a personal auto, denied the claim.

Our guy had all is ducks in a row with the correct insurance for an Expediter, so his coverage kicked in.  Of course, the insurance carrier who paid will now go after the guy who wasn't carrying the proper insurance thru subrogation to try to get their money back.  Whether they'll be able to squeeze blood from a turnip is another story, but any kind of lawsuit is a hassle.

An Expediter is a small business owner.  The kicker is that for a few bucks more, the Personal Policy could have been converted to a Commercial policy. 

Expediting Moral of the Day:  Run your biz on the up and up and no worries...that's what insurance is for.

Shelly Benisch, CIC 

Commercial Insurance Solutions, Inc.


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