Let’s talk about commercial auto insurance in two areas. First, who is not insured and second, insurable interest.

From the policy form itself, who isn’t insured, by definition, is you for any auto that you’

re driving or anyone else while using your vehicle with permission except there are five exceptions to number 2 of who isn’t insured. As your agent never discussed those five exceptions with you. Do you know what five exceptions are? If not, give Steven a call and he’d be over these with you to make sure that you’re properly insured.

Secondly, insurable interest. Nearly once a week, someone comes with a vehicle where the title of the vehicle does not match the name of the insurance policy. This is a very dangerous situation in the event of the client. The named insured on the policy XYZ Incorporated and the title holder of the vehicle XYZ Incorporated is a proper alliance to create insurable interest but oftentimes, owners of a business adding on a vehicle that is titled on their name and their business is a corporation or an LLC.

There’s no insurable interest there and in the event of a claim, you could find yourself with problems. Perhaps no coverage at all. On the personal auto policy, when you have a vehicle titled in the name of a child, the auto policy is in two spouses’ name, there’s a problem with insurable interest.

Insurable interest is an easy problem to overcome. First of all, you need to inform your agent of whose name the vehicle is titled in. The agent should be asking that question, but if not, you need to advise you agent that the name of my vehicle is not my personal name, my business is XYZ Incorporated. The most typical and easiest way to creating trouble enters is the release agreements.

A lease agreement is an insurance document that is used to allow the vehicle that’s titled in an individual’s name to be insured on their commercial auto policy or the title holder can be added unto the policy as an additional insured. There’s certain ways to get around this but it needs to be discussed before you have a claim and may find yourself without any insurance coverage.

 

Stephen Vaughn is up with another video on how you can make wise decisions with your insurance policies. This time, he went to a very specific item that almost all techie people love, the drones.

It seems like a small and trivial object to talk about but there’s more to drone than just the fact that it flies. Drones are pretty much the hippest thing to have. It can fly, it captures beautiful scenery from the sky, it can make your breathless moments into memories you can revisit. They are fun to have and playing with it is even more exciting. It is no surprising that many people are buying such item.

However, what people don’t know is that drones can get pretty pricey most especially if it causes damage to properties. Unfortunately, almost every insurance policy excludes coverage for drones. As per definition, drone is defined as an aircraft. The business personal property on the commercial insurance policy excludes aircraft from the coverage. This means that when using a drone, you have two exposures. One, the physical damage to the drone itself and two, the property damages or injuries caused by the drone.

Both the liability form under the homeowner’s policy and under the general policy exclude aircraft. To address the issue, companies today are using policy language in their renewal tools to accommodate drones in the coverage. Today, drones are sometimes included in coverage by endorsing it to their current policy or by writing a separate policy for the drone altogether.

They key to drone coverages is to speak about it to your agent and be advised on whether to include it in your policy or not. Doing this will give you a more informed educated decision regarding your insurance policies altogether.

Watch the video below to know more about drones and your insurance policies.

 

Both the employers and employees have responsibilities in knowing more about their compensation and the coverage policies along with it. It is important for the employers to know the coverages to gauge how much money they are going to put in it for the benefit of their workers.

Similarly, the employees must be familiar with the compensations in order for them to know what they can get from the companies they work for in the event of injuries.

This aspect of the work is important to have mutual trust between the employers and employees.

 

Stephen Vaughn from Insurance Agency and London Insurance Agency briefly outlined the workers’ compensation. The state of Kentucky has a law requiring every Kentucky employer with employees to purchase a worker’s compensation policy. Most people would get a policy and stop there. They consider themselves taken care of, they’ve already met the requirement and that’s it. However, that’s not always the case. Getting the policy is not enough, it’s equally important to learn how to use it and when to use it.

 

The Kentucky workers compensation policy has three coverages: Part A, B, and C.

 

Part A is a workers compensation. It is an unlimited benefit with medical expenses of your injured employees. Part B is the section entitled Employers’ liability. Part C is called Other State Coverage.

Let’s talk further about Part B. Part B is an important coverage because the spouse or dependents, or even the third party can make a claim against an injured employee’s employer for damages. It is often an overlooked coverage.

The state only requires a minimal amount of coverage for this but it’s important that you have extra protection. It is suggested that you should purchase at least $1 Million worth of coverage for part B because it’s dangerous territory when you have spouses, dependent, and third parties coming after you as an employer for damages for the injured employee.

Now for Part C or the Other State coverage. In Kentucky, most carriers say that if you have a Kentucky employee that is from another state on a part time basis, they will be given Kentucky benefits. However, the policy does not define what part time basis is. Also, if you bill into other states and you hire an employee from another state without the proper endorsement, your worker’s compensation coverage may be null and void. So it’s extremely important to have handed discussions with your agent about where your employees are hired, where they’re going to be working, and for how long.

To know more about Insurance Coverages and Policies, subscribe to this blog.

 

Also, watch this video to understand more of this three – part coverage. 

 

 

Ride-sharing is becoming more common in the past few years and now available in over 100 cities.  If you drive for a ride-sharing company or are thinking of doing so, it’s important to know the insurance implications if you drive your own personal vehicle. Read more

Many homes in Kentucky each year are burglarized, and people face home invasions every year.  However, there are steps that Kentucky homeowners can take to help protect their homes.  Many times, as well, these steps can help lower your homeowner premiums and claims. Read more