Select the Right Bodily Injury Liability Options for Your Commercial Auto Insurance

One type of coverage in a commercial auto insurance policy will cover bodily injury claims. If an employee using your company vehicle causes an accident that injures others, bodily injury liability insurance will pay for costs related to those injuries. This might include hospital and medical bills, rehabilitation costs, long-term nursing care, funeral expenses, lost wages, pain and suffering. This policy may also cover your company's legal defense if you are sued as a result of your employee's involvement in the accident. In most states, bodily injury liability insurance is required by law.

When you work with the commercial auto insurance company on the details of your policy, you will select limits that will determine the amount the company will pay for a given claim. You may choose to have split limits or a combined single limit.

Split limits - This kind of limit indicates the maximum payment the company will pay per person that is injured, and the maximum payment for all injuries in the accident. For example, if your policy lists limits of $20,000/$50,000, this means the company would pay up to $20,000 per person injured, up to a maximum total of $50,000 for all injuries in a single claim.

Combined single limit (CSL) - In this case, there is no specific limit per person. A maximum total is designated that is paid for all injuries and property damage that result from a single accident. For example, your policy indicates that the insurance company will pay up to $1 million for all injury and property damage related bills resulting from an accident your employee causes.

Consider the following comparison of how coverage might apply in the case of an accident where your employee rear-ends another vehicle, and your split coverage amounts are $20,000/$50,000:

Suppose the costs for the accident were $700 for the other driver's medical costs and a $15,000 hospital bill for a passenger in the other car. Since each person's medical costs were less than the $20,000 per person and the total accident was less than $50,000, all the costs would be covered by the insurance company.

If the costs for the accident were more significant, such as $30,000 for the other driver and $20,000 for the passenger, the total amount would be covered, but the individual amount for the other driver would be greater than the individual limit. Therefore, your policy would pay the maximum amount of $20,000 for the driver and the full $20,000 for the passenger, but your company would be responsible for the remainder of the driver individual amount above the maximum.

Some important considerations with bodily injury liability:

- Most companies will require that all of your business vehicles be listed on the policy, with the same limits for each vehicle. 
- Make sure your carrier is well informed about local laws regarding bodily injury liability requirements, as some states set minimum limits. 
- Some policies have a radius restriction, based on the operating location of the vehicle. - Check with your carrier to make sure any limits fit within your business location and service area. 
- Understand what coverage your business has. There are exceptions to all types of policies, so make sure you know what may not be covered, such as intentional acts.

Bodily injury liability considerations are just one aspect of a commercial auto insurance policy. Make sure you work with an experienced carrier who will take the time to understand your business needs and develop a policy that's right for you.

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Six Reasons Every Driver Needs Auto Insurance

According to the Bureau of Transportation Statistics, there are over 254 million registered vehicles in the U.S. All of those cars, trucks, and motorcycles must be covered by insurance in order to be legally operated on public roads. Have you ever wondered why that is? Why must we pay for something we may never use? Here are six good reasons every driver should have auto insurance.

1. It's The Law

Depending on where you live, you could be subject to fines and suspension of your driving privileges if you drive without auto insurance. Some states may even impound your vehicle on the spot if you cannot produce proof of coverage.

2. It May Save You Money

If you are involved in a car accident that was your fault, liability coverage should pay for the other driver's expenses. This includes both damage to property (the vehicle) and medical costs if either party was injured. Without coverage, you must bear the entire financial burden of the accident yourself, which could be thousands of dollars.

3. It Speeds Things Along

Although accidents are always unpleasant, when you have auto insurance, your insurer will help you through the post-accident process. Not only will they deal with the other party's insurance company so you won't have to, they can also help you file a claim and even find a local auto repair shop. If you don't have coverage, however, you won't receive any help, advice, or instruction. As a result, the process could drag on for months, or even years.

4. Accidents Happen

Even if you're a great driver who has never been in a car crash, you still need coverage. Why? Well, most drivers are involved in an accident sooner or later. Whether it's your fault or the other driver's, you'll be asked to prove that you are insured. There are about six million collisions reported each year in the U.S. - that's over 16,000 accidents a day - so there's always a possibility that you'll find yourself dealing with one.

5. It Provides Supplemental Coverage

If you are involved in a serious car crash and you have a bad health plan (or no health plan), auto insurance may help. Because most policies require personal injury protection coverage, your auto policy should pay for some of your medical expenses. This safeguard can be a blessing if you sustain a serious, chronic injury that requires rehabilitation or long-term nursing care.

6. It Provides Non-Accident Protection

Even if you aren't driving, your vehicle can sustain damage from a break-in, vandalism, or Mother Nature. Depending on your auto policy, you may be able to file a claim with your insurer that will reimburse you for any damage or loss.

For these reasons, it is imperative that you carry auto insurance on every vehicle you drive.

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