Insurance Insights ~ September 1997
Why Your Business Needs Non-Owned and Hired Autos Coverage Buying Life Insurance Did You Know... |
of Insurance Insights |
Why Your Business Needs Non-Owned
and Hired Autos CoverageYou may not realize it, but every day your business may be exposed to an uncovered loss. Do you have employee's who run errands on behalf of your business? How about your secretary who may make regular bank deposits, pick up office supplies, and run other ordinary business errands in her own automobile? Now, think about where coverage will apply if she is involved in an accident. In all likelihood, she probably has nothing to worry about, because she carries her own personal auto policy which provides coverage for her own liability and maybe some coverage for physical damage to her auto. But what about your business? You and/or your business could be held liable if negligence has been established against your employee. Since she was gainfully employed at the time the accident occurred, you could find yourself smack in the middle of a lawsuit, possibly resulting in a judgement against you.
This situation is not unusual. Short of providing owned autos for each and every person who will have the opportunity to use a vehicle for business purposes, we offer a much simpler solution. By adding coverage under your commercial auto policy for non-owned autos, you will receive full liability coverage, just as if it were an owned auto.
In addition to non-owned auto protection, you should also add hired auto liability to your commercial auto policy. This coverage provides protection for the operation of a rented or leased auto. This is not for a long-term leased vehicle, which would be treated as an owned vehicle. But rather, a vehicle that you may rent/lease for a specific job or other short-term period. As we mentioned above, this coverage is providing liability for bodily injury or property damage that you might cause while operating the rented or leased vehicle. No coverage is provided for the physical damage to the vehicle unless coverage has been added for hired auto physical damage. The alternative to hired auto physical damage would be to purchase the collision damage from the leasing company.
Some policies will provide these liability coverages automatically, such as a Garage policy. You should check your policy for this important protection. The additional premium to add this coverage is minimal in comparison to the possible exposure to loss your business could incur. We encourage you to discuss this coverage with your professional insurance agent, either by calling our Perkasie office at (215) 257-9171 or e-mailing us at info@gcwinsure.com.
Buying Life InsuranceWho needs life insurance anyway? The answer may surprise you, because a life insurance program is essential to just about everyone! Let's take a look at where you are in your life.
NEWLYWEDS: Do you have a spouse who completely depends on your income, or are you part of a two-income couple? If your spouse depends on your income, the financial obligations would be overwhelming should the wage-earner die. As a part of a two-income couple, there are school, car and home debts that would be too heavy a financial burden for just one person to carry.
HOME BUYERS: While buying a home is exciting, it is also the largest debt a family is likely to incur in their lives. What happens if you are not around to make the payments? Could your spouse handle the payments? Mortgage insurance will pay off the mortgage when the policyholder dies, protecting the home for your family.
NEW PARENTS: Do you know it costs approximately $200,000 to raise a child to age 18 in the United States? The cost is even higher if you include a college education! Would your spouse be able to cover all the costs for food, clothes, housing, child care, education, and other things you need to raise a family?
RETIREMENT PLANNERS: With more people in the 50+ age group, and fewer in the 20-30 age group, there are fewer people contributing to social security, while more are expecting to draw money out of the system. Retirement can be the greatest years of your life, but today, people must actively and aggressively plan for their retirement years. This can be accomplished by using life insurance as part of your overall retirement plan to help maximize your retirement benefits.
RETIREES: Finally, the golden years are here! The kids are on their own, you have paid off the mortgage, and you're ready to enjoy your retirement. Many changes will be made in your free and easy lifestyle, however, your need for life insurance continues! If you choose the "life only" option under your retirement plan, you will receive a higher monthly pension payment than you would by choosing the "joint life" option. However, payments would stop at the retiree's death, potentially leaving the surviving spouse with no source of income. An adequate life insurance program will allow you to choose the higher paying option, and still provide for your spouse if you die. Another concern at this age is estate taxes. Life insurance is the best means of providing the cash needed, when needed, to pay those taxes when due.
Now that you see life insurance has a place in your life, how do you figure out how much and what kind you need? A Needs Analysis form will help show you what your family's present and future financial needs are. This is a "do-it-yourself" form, that lets you put in information such as your present income, mortgage amount, and outstanding bills. Future needs including a college fund, final expenses, unpaid medical bills, or a combination of these things are also included. With these figures, you will have an estimate of your family's financial needs, and the amount of life insurance required to meet those needs.
The next step is to work with a qualified life insurance agent to determine the type of policy that is right for you. Your agent can outline the options available, and assist you in developing the plan best suited for you and your family.
To help in planning your life insurance program, our agency offers the following items:
Any of these forms are available to you at no cost. To receive a copy, simply e-mail us at info@gcwinsure.com or call us at (215) 723-9805 or (215) 257-9171.
For a no-obligation review of your life insurance program, please contact any one of our fully qualified agents.
...The Erie Insurance Group has earned the name "The
Pioneer in the Insurance World"?
...You could qualify for a multi-policy discount on your homeowner's and automobile policies when you insure both your home and family auto with The Erie Insurance Group?
...Your comprehensive deductible is waived when you have a damaged windshield repaired instead of replaced?
...Your Pioneer Family auto policy pays up to $350 for personal effects in your auto if your covered auto is stolen?
...You can phone EIGlass at 1-800-552-ERIE 24 hours a day, 7 days a week, for automobile glass claim information?
...If Road Service coverage is purchased, Erie will pay all reasonable towing and labor costs required because an auto we insure is disabled? Labor must be done at the site of the disablement.
INSURANCE INSIGHTS is an electronic newsletter published monthly by G. C. Weimer Associates, Inc. Information contained herein is accurate to the best of our knowledge and belief as of 9/1/97. If you have a topic of interest for a future issue, e-mail us at info@gcwinsure.com.
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To contact G.C. Weimer Insurance Agencies, e-mail info@gcwinsure.com
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