Choose the Right Right Liability Option Option for your Commercial
One type of coverage in a commercial car insurance policy will include a body injury claim. If an employee who uses your company vehicle causes an accident that injures another person, the insurance of liability for the injury will pay the costs associated with the victim. This may include hospital and medical bills, rehabilitation fees, long-term nursing care, funeral expenses, lost wages, suffering and suffering. This policy may also include your company’s legal defense if you are sued as a result of your employee’s involvement in the accident. In most states, liability insurance for physical injury is required by law.
If you work with a commercial car insurance company about your policy details, you will choose a limit that will determine the amount that the firm will pay for a particular claim. You can choose to have a split limit or a single merge boundary.
Choose the Right Right Liability Option Option for your Commercial
Split limit – This type of limit represents the maximum payment the company will pay per wounded person, and the maximum payment for all casualties. For example, if your policy includes a $ 20,000 / $ 50,000 limit, this would mean the company would pay up to $ 20,000 per injured person, up to a maximum of $ 50,000 for all injuries in a single claim.
Combined single limit (CSL) – In this case, there is no specific limit per person. The maximum amount assigned to all property injuries and damages due to a single accident. For example, your policy indicates that the insurer will pay up to $ 1 million for all property injuries and damages caused by accidents caused by your employees.
Consider the following comparison of how coverage might apply in case of an accident where your employees are behind another vehicle, and your split amount is $ 20,000 / $ 50,000: Choose the Right Right Liability Option Option for your Commercial
Suppose the cost for the accident was $ 700 for another driver’s medical expenses and a $ 15,000 hospital bill for passengers in another car. Because everyone’s medical expenses are less than $ 20,000 per person and total accidents are less than $ 50,000, all costs will be covered by the insurance company.
If the cost for the accident was more significant, such as $ 30,000 for other drivers and $ 20,000 for passengers, the total amount would be covered, but the sum of each for the other driver would be greater than the individual limit. Therefore, your policy will pay the maximum amount of $ 20,000 for the driver and the entire $ 20,000 for passengers, but your company will be responsible for the remaining number of drivers each above the maximum amount.
Some important considerations with liability for physical injury:
Most companies require that all your business vehicles be registered on a policy basis, with the same restrictions on each vehicle. Make sure your carrier is well informed about local laws regarding the physical injury liability requirements, as some countries set minimum limits. Some policies have a radius limitation, based on the vehicle’s operating location. Check with your carrier to ensure that all restrictions match your business location and service area. Understand the scope of your business. There are exceptions to all types of policies, so make sure you know what might not be covered, such as deliberate action. Choose the Right Right Liability Option Option for your Commercial
Injury liability considerations are only one aspect of a commercial car insurance policy. Make sure you work with experienced operators who will take the time to understand your business needs and develop policies that are right for you.