Bodily Injury Liability Insurance
One kind 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 prices related to those injuries. This may embrace hospital and medical bills, rehabilitation costs, long-term nursing care, funeral expenses, lost wages, pain, and suffering. This policy could conjointly cover your company’s legal defense if you are sued because of your employee’s involvement in the accident. In most states, bodily injury liability insurance is required by law.
When you work for the commercial auto insurance company on the small print of your policy, you’ll choose limits that can determine the quantity the corporate can purchase a given claim. You will opt for to have split limits or a combined single limit.
Break limits – This reasonably limit indicates the most payment the corporate can pay per person that’s injured and the most payment for all injuries within the accident. For example, if your policy lists limits of $20,000/$50,000, this suggests the corporate would pay up to $20,000 per person injured, up to a maximum total of $50,000 for all injuries during a single claim.
Combined single limit (CSL) – In this case, there is no specific limit per person. The most total is designated that is bought 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 harm related bills resulting from an accident your employee causes.
Contemplate the following comparison of how coverage would possibly 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 prices for the accident were $700 for the other driver’s medical costs and a $15,000 hospital bill for a passenger in the opposite automobile. Since every person’s medical prices were less than the $20,000 per person and the entire accident was but $50,000, the insurance company would line all the prices.
If the costs for the accident were more significant, like $30,000 for the different driver and $20,000 for the passenger, the total amount would be coated. However, the particular value for the different driver would be greater than the individual limit. Therefore, your policy would pay the total quantity of $20,000 for the driver and the complete $20,000 for the passenger. However, your company would be accountable for the remainder of the individual driver amount higher than the most.
Some important considerations with bodily injury liability insurance:
- Most corporations can need that every one of your business vehicles is listed on the policy, with the same limits for each vehicle.
- Build confident your carrier is well informed concerning constitutional laws concerning bodily injury liability insurance necessities, as some states set minimum limits.
- Some policies have a radius restriction, based on the operating location of the vehicle. – Check together with your carrier to create sure any limits match inside your business place and repair space.
- Perceive what coverage your business has. There are exceptions to all varieties of policies, therefore create sure you know what may not be covered, like intentional acts.
Bodily injury liability insurance issues are simply one side of an industrial auto insurance policy. Build confident you work with an old carrier who will take the time to perceive your business desires and develop a plan that’s right for you.