California Business Insurance
California Business Insurance
INSURANCE IS THE LANGUAGE OF THE PRACTICAL LIFE
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Business Owners Insurance Policy California (BOP):
This is a combined policy where property insurance and liability insurance are packaged together at a cost savings for small businesses.
Commercial Property Insurance California:
This policy is meant to protect the building and other business property that you own or lease. Note that equipment insurance is typically a separate policy.
Commercial Auto Insurance California:
This policy covers you, your employees and company vehicles for injuries and damages, whether the vehicles are leased, owned, or rented. Passengers are also covered.
Business Vehicle Insurance California:
If you use your own car for business purposes, discuss this with your agent. Many personal auto insurance policies exclude coverage if the vehicle involved in an accident is used mainly for business. A business auto policy provides coverage for autos owned by a business. The insurance pays any costs to third parties resulting from bodily injury or property damage for which your business is legally liable, up to the policy limits. Depending on what kind of coverage you buy, the insurance may pay to repair or replace your vehicle because of damage resulting from accidents, theft, flooding and other events.
Directors and Officers Liability Insurance California ("D & O"):
If the directors or officers of a company are accused of wrongful or negligent acts, this coverage can protect the companyâ€™s financial assets from legal settlements and the cost of legal defense.
General Liability Insurance California:
This policy will protect businesses from most situations where the company could be held liable for bodily injury or property damage. It does not include commercial vehicle or professional liability coverage, which are covered separately.
Marine Insurance California:
This coverage provides protection for company equipment or goods in transport. It also provides coverage if the vehicle transporting the goods is damaged, and provides liability coverage for third parties. You can choose between ocean marine coverage and inland marine coverage.
Workers Compensation Insurance California:
This policy will provide compensation for an employeeâ€™s medical bills, lost wages, rehabilitation and disability coverage in the event of a work-related illness or injury.
Rider or Endorsement California:
Also referred to as an endorsement, this is an addendum that will alter or enhance the current policyâ€™s terms. For example, you may be able to add an equipment rider to your property insurance to protect your equipment.
Named Peril Insurance California:
An event or hazard that is listed as covered on your business insurance policy, and will be covered if it occurs.
What Is Liquor Liability Insurance California?
Any business that sells or serves alcoholic beverages, including restaurants, nightclubs, and bars, can be held liable for damages or injuries caused by intoxicated patrons. This can include damages that result from fights, careless behavior or even automobile accidents. While it may seem logical to place the blame fully on the individual who perpetrated these acts, the establishments that allowed them to become intoxicated are also held largely liable and can be sued for exorbitant sums of money, particularly if resultant injuries are severe or fatal.
Fortunately, you can protect your business from large financial losses with a liquor liability insurance policy. These policies are sometimes included with general liability coverage in some business insurance policies, but most often they need to be purchased separately as stand-alone coverage or as a business policy endorsement.
Types of Business Insurance You May Need in California:
The most common types of business insurance coverageinclude:
- General liability insurance
- Commercial property insurance
- Commercial automobile insurance
- Workers compensation
Your specific situation might also require that you purchase additional coverage to match your business risks. The additional coverage types you may need will depend on the nature of the work you do. For example, they might include the following:
- Professional liability insurance
- Product liability insurance
- Business income insurance
- Cyber liability insurance
- Business interruption coverage
Some companies also offer business owner policies, or BOPs, which encompass two or more types of business insurance in an affordable package.
Transportation Industry Insurance:
Transportation industry covers a broad range of businesses with unique commercial insurance needs. Truck owner-operators and fleets, school and private bus lines, limousines, couriers and ambulances all encompass the transportation service industry that serves customers and businesses all over the United States. When it comes to insuring each of these facets of transportation services, most business owners look to the expertise of insurance brokers that can assist in determining the type and amount of insurance that will provide the most protection to these vital companies.
The following insurance options form a foundation for transportation insurance needs and should be part of every insurance protection program.
The trucking transportation industry spans from individual owner-operators to large private fleets for hire. Truckers need commercial auto liability to cover any accidents on the road. Commercial truck insurance will pay for property damage, bodily injury and medical payments. It also includes comprehensive and collision coverages along with cargo insurance to protect a trucker's load in case of spills, spoilage or damage. General liability insurance is also available for protecting trucking companies from claims and lawsuits by customers or other third parties in the event of an injury or damage to other's property. Certain truck companies need umbrella liability to provide added coverage over and above the standard general liability. This excess liability can be anywhere from $1 million to $8 million.
While trucking transportation is primarily concerned with moving freight loads across the country, public transportation moves people. Public transportation insurance covers school buses, charter buses, limousine services, social services and day care vans. Public transportation services require commercial auto liability with higher liability limits in the case of accidents that hurt multiple people. This coverage is in force to protect passengers and drivers when injured. They also utilize general liability insurance in case of claims or lawsuits for damage to other people's property or injuries.
Commercial transportation companies also utilize comprehensive insurance programs to protect their drivers, riders and property. Commercial transportation companies encompass emergency service vehicles such as ambulances and hospital vans, driving schools, retail drivers, health care and contractors. Commercial auto fleet insurance with liability and physical damage coverage gives these companies the needed coverage to pay for injuries and property damage caused by the operation of the vehicle. Garage keeperâ€™s coverage is often needed as well to protect customer cars parked or used on company premises.
Commercial insurance protects the restaurant and food industry from the many potential risks that accompany this line of work. No matter the restaurant's size, every business owner experiences difficulties that can ultimately result in claims or lawsuits. Broken equipment, kitchen employee slip & fall injuries and a host of other potential accidents are just a few of the many unexpected issues that arise during the course of working with the general public and employees. Having the right amount of insurance protection in place can mean the difference in keeping a company in business when faced with a large lawsuit seeking a substantial monetary award of damages.
But what exactly do restaurants and other food related service companies need when it comes to insurance protection plans? While each individual company must customize their coverage to best suit their own needs, there are common types of insurance that all will need in varying amounts or policy limits.
General Liability Insurance
General liability insurance is one of the two most common types of commercial insurancethat companies need to provide the kind of protection necessary in today's litigious society. The second most common type is general property insurance. Liability coverage protects businesses from lawsuits and claims resulting from injuries and damage to other people's property. For restaurants, liability insurance will cover such customer claims as food poisoning or accidental slip and fall injury on a wet floor.
Of all the different insurance policies available for restaurants, property insurance is another must have coverage. If a worker forgets and burns something on a stove top thus igniting a fire in the kitchen, property insurance pays to repair the damage. This insurance coverage is available to cover all sorts of potential risk such as fire, theft, explosion, flood and earthquake. It will cover not only the actual building but all of the contents as well meaning that furniture, fixtures and supplies are also protected.
Liquor Liability Insurance
Those dining establishments that carry a liquor license are typically required by state law to obtain liquor liability insurance. This vital coverage will protect business owners and their companies from legal liability for customers that drink a little too much and hurt themselves or someone else - including if they drive while intoxicated.
Food Contamination Insurance
Food and supplies are the lifeblood of every restaurant. When storms or loss of power interrupts important electricity to freezers and walk-ins, the power outage can also cause food to spoil. This important type of insurance protects business owners by paying to replace spoiled food.
Workers Compensation Coverage
Most states require that companies with employees carry workers comp insurance. This insurance will cover workers who are injured on the job by paying for their medical expenses and any lost wages as a result of temporary or permanent disability.
Business Income or Interruption Insurance
When an unexpected event happens - like a flood or fire - many companies must close while repairs are made. Business interruption insurance provides a safety net to restaurants so that should a temporary shutdown be necessary, the bills can still be paid.
No matter the event or accident, restaurant insurance is a must. Business owners should review these coverage types with an insurance broker to gain insight into what policies would be best, and then determine the right policy amounts necessary to provide the best insurance protection to meet business budgets.
Beauty Salon, Barber Shops, and Spa Insurance:
Beauty salons, barber shops and spas all have unique insurance needs for protecting owners from lawsuits, property damage and theft. Insurance coverage is available to protect every aspect of the company including the owner, property and employees. There is no one size fits all insurance coverage so before purchasing policies, business owners need to understand about the different types of insurance available for the beauty industry. Armed with that knowledge, companies can make the right choices for insurance protection.
Professional Liability Insurance
While not a required insurance coverage, professional liability provides important coverage for salon and shop owners. If someone is upset by a haircut style, the wrong hair color or accidentally receives a cut from a razor, they may choose to sue the stylist or shop owner. Professional liability insurance protects companies from mistakes by paying for legal defense costs and any damages or awards by the court.
Commercial Property Insurance
Business property coverage protects business owners from damage to both the physical building and property inside. Property insurance covers specific perils such as fire, theft, vandalism and wind. Salon and barber shop owners need to purchase this coverage to protect their equipment, furniture and fixtures from damage. Landlord property insurance will not cover business tenant personal property so if salon owners rent their space, it is vital to purchase property insurance for contents.
Business Income and Business Interruption
When a salon or spa is damaged by a covered event such as fire, business income and interruption insurance work together to help shop owners continue to pay the bills while the establishment is being repaired or rebuilt. Because there is loss of income during this time, the business income insurance will cover the loss of salary due to the salon's closure. Business interruption reimburses business owners for fixed costs like rent/mortgage and utilities - those expenses associated with keeping the storefront opened.
Most businesses in today's business world find general liability a necessity. Liability insurance covers injuries or damage caused to other people's property. In a salon situation, a client may trip over something in the store and break an arm. General liability would pay for medical expenses and any court awarded judgment or settlement if the business owner is held financially liable.
Having the right insurance in place for unexpected accidents and risks will protect the significant amount of time and money invested in salons, barber shops and spa businesses. For expert advice on choosing the right type and amount of coverage, an insurance broker can make appropriate recommendations for the insurance most needed in the hair & beauty industry.
Federal Truck Filings and Forms
The following federal filings are required for businesses engaging in interstate trucking or transportation of specific cargo.
A BMC-32 is an endorsement that must be attached to Cargo Liability insurance that guarantees a minimum level of coverage for cargo losses for which you are liable. Like the MCS-90, carriers are not required to file copies of this form with FMCSA.
A BMC-34 filing is a document submitted to the Federal Motor Carrier Safety Administration (FMCSA). The BMC-34 filing guarantees the FMCSA that you have the required amount of Cargo Liability insurance.
BMC-91 and BMC-91X Filings
A BMC-91 filing is a document submitted to the Federal Motor Carrier Safety Administration (FMCSA). The BMC-91 filing guarantees the FMCSA that you have enough Liability insurance to cover the increased risk of transporting goods or people across state lines.
A BMC-91X filing is required when your insurance is provided by multiple companies instead of just one.
An MCS-90 is an endorsement that must be attached to Liability insurance and Cargo Liability insurance policies if you are required to have a federal filing. The MCS-90 endorsement guarantees the minimum required protection for members of the public who are involved in accidents for which you are deemed legally responsible.
The MCS-90 is not filed with the Federal Motor Carrier Safety Administration (FMCSA). The BMC-91 or BMC-91X filing is submitted to the FMCSA as certification that the MCS-90 endorsement has been issued.
Unified Carrier Registration Filings The Uniform Carrier Registration Plan (UCR Plan) replaces the Single State Registration System (SSR) as of September, 2007. It simplifies the payment of multiple state fees by allowing for-hire and private motor carriers, brokers, freight forwarders and leasing companies to submit their financial responsibility information and a registration fee payment to a single state.
Under the UCR Plan, motor carriers conducting interstate operations must register in a base state. Your base state is the state in which the largest number of your vehicles will operate during the coming year.
Currently, 41 of the 50 states are participating in the UCR Plan, and if your base state is one of the participating states, you must register in that state. Private and exempt carriers who were not required to register under the SSR must register in a base state under the UCR Plan.
The registration fee paid to your base state will be shared between all the states in which you operate.
The UCR Plan does not affect a state's regulation of intrastate trucking within that state, including its motor carrier financial responsibility laws for intrastate trucking.
States that participate in the UCR Plan can change over time. Call 1-888-806-9598 for help determining if your base state participates in the UCR Plan and to learn more about state truck filings.
Intrastate Truck Filings
Form E Filing
A Form E filing certifies that your Liability insurance complies with the state's financial responsibility laws. Form E is submitted to the department of your business' home state that regulates intrastate trucking.
Form F filing is an endorsement to your policy that conforms it to each state's financial responsibility laws.
Form H Filing
A Form H filing guarantees your state that you have sufficient Cargo Liability insurance and is submitted to the state department of your business' home state.
A Form H filing is not available in all states and situations.
Form K Filing
A Form K filing is used to cancel a previous state filing and is submitted to the state agency that regulates motor carrier financial responsibility in your business' home state.
State-Specific Truck Filings
Beyond the UCR, some states require other filings for specific businesses or vehicle types operating within their borders. These filings are submitted to your state's department of motor vehicles or other regulatory agency.
Look for your state below to see some of the state-specific filings that may be required for your business.
CA OL 207 - California Driving School Certificate
The California Driving School Certificate is a form submitted to the California DMV verifying proof of insurance. The state of California has special requirements for driving schools; since different drivers constantly operate each vehicle.
Commercial vehicle operators in California must obtain a Motor Carrier Permit and a Carrier Identification Number. An MCP-65 filing (also called a DMV65MCP) is a certificate of insurance that must be sent to the California DMV as proof that you carry the required level of Liability insurance.
A PL914 filing is a document submitted to the state of California for businesses offering commercial balloon, commercial river rafting or commercial skiing (class C) excursions. (Passenger transportation must be offered as part of the excursion package at no additional cost.)
TL672 Filing / TL 671 Endorsement
A TL676 filing is a document submitted to the California DMV for household goods movers. It guarantees the state that you have sufficient cargo insurance coverage (endorsement TL671).
TL676 Filing / TL 675-A Endorsement
A TL676 filing is a document submitted to the California DMV for household goods movers. It guarantees the state that you have sufficient Liability insurance.
A TL1000 filing is a document submitted to the state of California for businesses that offer courtesy transportation. This form ensures that you have sufficient Liability insurance and is only available for businesses offering courtesy transportation. It is not available for businesses engaged in the for-hire transportation of passengers.
To file a TL1000, the named insured on the policy cannot be an individual.
If a Z permit is required with the TL1000, we cannot issue the filing.
You must have a Carrier Authority Number (CA#) for us to issue a TL1000 filing for you. A Carrier Authority Number can be obtained from the California Highway Patrol.
A Form 12 is a document submitted to the state of Colorado for towing businesses and property carriers. It guarantees the state that you have sufficient Liability insurance to cover accidents potentially caused by operating tow trucks and a minimum amount of required coverage for transporting property.
On-Hook insurance must also be purchased, in addition to Liability insurance, to obtain this form.
A Form 14 is a document submitted to the state of Colorado for towing businesses. It guarantees the state that you have sufficient Liability insurance to cover accidents potentially caused by operating tow trucks.
You must also have a Single State Registration System (SSRS) Form E and a Colorado State Form 12 to obtain this form.
You must also purchase On-Hook insurance coverage and Garage Keeper's Legal Liability (GKLL) coverage in addition to your Liability insurance to obtain this form.
A MC1641 filing is a document submitted to the state of Connecticut for businesses offering courtesy transportation. We will not issue this form for businesses engaged in the for-hire transportation of passengers.
This filing is vehicle specific. Progressive does not have to insure all of your commercially owned or operated vehicles in order to obtain this filing.
Special approval by Progressive is required before this filing can be issued.
A GU1327C filing is submitted to the state of Connecticut to cancel an MC1641 filing. The GU1327C notifies the state of Connecticut of changes to your Liability insurance.
A R1325C filing is required before you can obtain a license to operate a leased or rented vehicle. This filing is submitted to the state of Connecticut.
Verification of higher limits required after conviction for DUI. FR 44 must be maintained for a minimum of three (3) years after conviction.
Form submitted by the insurance company required to cancel an FR 46.
An SR50 filing is a financial responsibility form that provides proof that you have at least the minimum required Liability insurance and is submitted to the Indiana Bureau of Motor Vehicles (BMV).
An SR50 will only be issued in the name of the named insured on your policy.
You may also need an SR-22 filing in addition to an SR50.
A Form MV5 COI is submitted to the state of Montana for towing businesses. It guarantees the state that you have sufficient Liability insurance to cover accidents potentially caused when operating a tow truck.
At Progressive, we only issue this form on behalf of the insured for the cargo/property portion of the form. You also will need to obtain a separate Cargo Carrier portion for this filing.
To obtain this filing, you also must have On-Hook insurance coverage and, if you tow vehicles to a storage or repair facility that you own, Garage Keeper's Legal Liability insurance coverage.
An OS-32 filing guarantees the state of Ohio that you have sufficient Liability insurance to cover accidents potentially caused by operating oversized vehicles or trailers. This document is submitted to the Ohio Department of Transportation (ODOT).
The WA Form is submitted to the state of Oklahoma for towing businesses. It guarantees the state that you have sufficient Liability insurance to cover accidents potentially caused by operating tow trucks.
Rhode Island Filings
The GU1338C is submitted to the state of Rhode Island to verify proof of financial responsibility or proof of Liability insurance. This filing is vehicle specific and must be issued for each vehicle separately.
A GU1338C filing requires special approval by Progressive prior to being issued.
A Form T is submitted to the state of Texas for towing businesses. It guarantees the state that you have sufficient Liability insurance to cover accidents potentially caused by operating tow trucks.
You must have a Vehicle Storage Facility (VSF) number to obtain this form.
TA-VN-31 Driver Training COI
The TA-VN-31 is a form issued to the state of Vermont as proof of insurance for driving schools. The state of Vermont has special requirements for driving schools since the drivers for each vehicle are always changing.
Verification of higher limits required after convictions for certain offenses, including maiming while under the influence, conviction for DUI, or conviction for driving after forfeited license due to DUI conviction. FR 44 must be maintained during the drivers license suspension period.
Form submitted by the insurance company required to cancel an FR 46.
An SR-22 filing is a financial responsibility form submitted to your state's motor vehicle department, often referred to as the DMV. An SR-22 is proof that you have at least minimum Liability insurance coverage. It also is a guarantee from your insurance company to notify the DMV if you fail to maintain continuous insurance coverage.
An SR-22 filing often is required to reinstate a driver's license after it has been suspended.
An SR-26 filing is used to inform the DMV that an SR-22 has lapsed, expired, or has been canceled.
Certificates of Insurance (COI)
Required by various states, certificates of insurance are similar to filings because they offer proof of financial responsibility by showing adequate insurance coverage. COIs also are processed in the same way as filings.
Oversized/Overweight Vehicles COI
(Alabama, Arkansas, Louisiana, Mississippi and Pennsylvania only)
This certificate of insurance is a document submitted to the state for oversized vehicles or trailers, or for overweight vehicles or loads. It guarantees the state that you have sufficient Liability insurance to cover accidents potentially caused by operating larger, heavier vehicles and trailers.
Florida Department of Motor Vehicles COI
The state of Florida requires proof of insurance providing required coverages and minimum limits for all commercial trucks and tractors with a gross vehicle weight (GVW) more than 26,000 lbs. Acceptable forms of proof of insurance include the Florida DMV COI and the Form E filings.
An accident is a sudden, unexpected event or occurrence that causes bodily injury or property damage. The event may be at-fault, not-at-fault, reported or unreported. An example of a not-at-fault accident could be where your parked vehicle is struck by another vehicle.
Actual Cash Value (ACV)
A vehicle's actual cash value, also called the market value, is essentially the price someone would pay to purchase that exact vehicle today. It's determined by evaluating a number of factors, including the vehicle's age and condition, as well as any prior damage, improvements, or special equipment.
A company or person who may be liable for an accident that involves an insured person or vehicle can be added to the policy as an additional insured.
Example: A general contractor can be an additional insured.
A device, either active or passive, that attempts to prevent vehicle theft. Active anti-theft devices can track and recover a vehicle and automatically contact a response center to begin the vehicle recovery process. Passive anti-theft devices attempt to prevent theft by using sophisticated electronic car alarms, simple steering wheel locks, etc.
Any Auto Coverage,
Any Auto coverage extends Liability insurance to hired and other non-owned vehicles, and vehicles you purchase during your policy term. It extends the same Liability coverage and limits you carry for the vehicles already listed on your policy to the unlisted vehicles. Any Auto coverage requires a contractual agreement stating the need for the coverage. Other restrictions could apply.
Although Bobtail coverage is often used interchangeably with Non-Trucking Liability coverage, technically they are not the same thing. Bobtail insurance protects a tractor when it's operated without a trailer, whether or not it's under dispatch, while Non-Trucking Liability coverage only covers a vehicle when it's driven for personal, nonbusiness use.
Bodily Injury Liability Coverage (BI),
Bodily Injury Liability is one part of Liability Coverage. If you are responsible for causing an accident, Bodily Injury Liability coverage pays for injuries/death to people involved in the accident. Bodily Injury Liability coverage also pays for legal defense costs if you are sued.
Combined Single Limit (CSL),
CSL is a single number that describes the predetermined limit for the combined total of the Bodily Injury Liability coverage and Property Damage Liability coverage per occurrence or accident.
Example: A CSL of $1 million pays up to a combined total of $1 million for both Bodily Injury Liability coverage and Property Damage Liability coverage for any single accident.
Commercial Driver's License (CDL),
A CDL is a special license needed by operators of tractors, vehicles over 26,000 GVW, or vehicles carrying more than seven passengers.
A commercial vehicle is any vehicle used for business purposes. Also called commercial auto, corporate car, corporate vehicle, business auto, business car or business vehicle.
If your insured vehicle is damaged due to an event other than a collision, Comprehensive coverage will pay for the damage. This includes damages from fire, theft, windstorm, flood and vandalism.
Comprehensive Coverage with Full Glass Protection,
If you need to replace a window or windshield due to a non-collision incident, Comprehensive coverage with Full Glass Protection pays to replace it and waives the standard deductible, which you would usually have to pay out of pocket. This coverage is not available in all states.
When your insured vehicle overturns or collides with another object, Collision coverage pays for the damage to your vehicle.
Being continuously insured means your insurance coverage was in effect at all times, without a break or lapse in coverage for any reason.
A corporation is created to function as a separate legal and tax entity, independent of the people who own and manage it. It can enter agreements, incur debts and be taxed apart from its owners. A corporation is required to file articles of incorporation with its home state, create corporate by-laws, issue stock certificates and comply with a number of corporate formalities.
Coverage is the word used to describe protection for an insured as provided by an insurance policy. A particular coverage may refer to a specific component of insurance that provides protection under a given set of circumstances.
People who travel from home, working a few weeks at a time at various locations harvesting seasonal crops, are custom harvesters. They sometimes also are called agricultural workers or migrant workers.
Sometimes also called "Bobtail coverage." Although Bobtail or Deadhead coverage is often used interchangeably with Non-Trucking Liability coverage, technically it is not the same thing. Bobtail insurance covers a tractor when it's operated without a trailer, whether or not it's under dispatch, while Non-Trucking Liability coverage only covers a vehicle when it's driven for personal, nonbusiness use.
Declarations Page (Dec Page),
Also known as an auto insurance coverage summary, this page is provided by your insurance company and lists the following:
- Types of coverage you have elected
- Limit for each coverage
- Cost for each coverage
- Specified vehicles covered by the policy
- Types of coverage for each vehicle covered by the policy, and
- Other information applicable to the policy
A deductible is the dollar amount you agree to pay out of pocket for damage resulting from a specific loss or accident. Deductibles always are selected when you purchase an insurance policy.
Diplomatic Driver's License,
A diplomatic driver's license is issued to members of foreign consular posts and their family members in the United States. Diplomatic driver's licenses can only be issued by the Department of State through its Diplomatic Motor Vehicle Office.
A discount is a percentage reduction applied to a premium for fulfilling specific requirements or actions.
Doing Business As (DBA) name,
A DBA is a name by which a company is known to the public but which is not its legal name.
Electronic Funds Transfer (EFT),
EFT is a payment method in which funds are automatically deducted from a customer's checking account to pay bills on a regularly scheduled basis. Customers must select the EFT payment method and authorize payments in advance to use this system to pay their bills.
Employer's Non-Owned Coverage,
Employer's Non-Owned coverage provides Liability insurance for a vehicle owned by your employee if it must be used to conduct your business. This coverage is for vehicles that are not regularly used for the business.
A filing is like a certificate of insurance issued by an insurer that provides proof of specific insurance coverage. There are both federal filings and state filings.
Federal filings are submitted to the Federal Highway Administration. They often are required for interstate transportation of goods, people or hazardous materials.
State filings are submitted to a specific state's Department of Transportation or other governing body. They often are required for intrastate transportation of goods, people or hazardous materials.
Federal Highway Administration (FHWA),
The FHWA is a branch of the federal government that regulates interstate transportation of goods and people.
Fire and Theft with Combined Additional Coverages,
The damage or loss must be caused by one of the following: fire, lightning, explosion, theft, windstorms, hail, earthquakes, flood, rising waters, vandalism, a collision with an animal, or while being transported by a third party.
For-hire truckers are truck operators who transport goods for a fee.
Garage keepers Legal Liability Insurance,
Garage Keeper's Legal Liability coverage was designed for towing businesses. It protects your customers' vehicles in case of fire, explosion, theft, vandalism or collision when the vehicle is at your garage or covered location for servicing, parking or storing.
A garaging location is the place you primarily park your vehicle when you're not using it. Generally, this is your primary business address.
Gross Vehicle Weight (GVW),
GVW is the total weight capacity of a fully loaded vehicle. It can be calculated by adding the weight of the vehicle to the maximum weight of a load that could be carried in the vehicle. GVW can be obtained by checking the manufacturer's general information for the vehicle.
Hired Auto Coverage,
Hired Auto coverage provides Liability coverage for a non-owned, unlisted vehicle that you have leased, hired, rented or borrowed.
Individual Named Insured Endorsement,
This coverage extends your Liability and Physical Damage coverages to other non-owned private passenger-type autos that you, or a resident relative, might drive.
This coverage is for vehicles that are not available for your regular use, and that are not owned by you, your spouse or any resident of your household. This coverage is available only to individual named insureds, and not to corporations or partnerships.
If you cross the border of one state into another state, that is interstate travel.
If you stay within the borders of one state, that is intrastate travel.
A lease is a contract or arrangement in which the use of equipment, such as a vehicle, is granted for a specified time at a specified price.
Liability coverage provides protection against your legal liability for Bodily Injury and/or Property Damage caused by the negligence of your employees or yourself in the operation or use of your insured motor vehicle. This coverage also provides you with legal defense costs in the event you are sued as a result of an accident.
Limited Liability Company (LLC),
A Limited Liability Company combines the personal liability protections of a corporation and the pass-through tax benefits of a partnership or sole proprietorship. Owners of LLCs typically are called members and share equally in the management responsibilities of the company. LLCs may also choose to appoint certain owners or outside personnel to manage business operations.
An insurance coverage limit is selected by you at the time you purchase a policy. It describes the maximum an insurance company will pay for damages or injuries that apply to a specific coverage. Most states have laws that specify the minimum limit that must be purchased for each required insurance coverage.
Liability coverage limits can be described as a combined single limit (CSL) or as a split limit.
Medical Payments (MedPay) Coverage,
MedPay is an optional insurance coverage that pays for reasonable and necessary medical and funeral expenses for covered persons. These expenses must be incurred as a result of an auto accident.
A minimum limit is the least amount of insurance coverage required by state law. Sometimes also called statutory limits, minimum limit requirements or basic limits.
The named insured is the name of the business or person who owns the insurance policy.
Non-Trucking Liability Coverage,
If you're under permanent lease to a motor carrier that provides your Primary Liability coverage, you could benefit from our Non-Trucking Liability (NTL) coverage with unlimited radius while using your truck for a personal non-business purpose.
Non-Trucking Liability insurance can pay for medical and associated expenses for injuries or even death that you cause to other people or for any damage caused to other peoples' property. Non-Trucking Liability insurance provides liability coverage for the truck when it's used for personal use only, such as when you are at home on your day off and use the truck to go to the movies, pick up groceries or to visit a friend. This endorsement only modifies the liability portion of your policy.
NTL does not provide liability coverage for any use that can be considered business use or to carry cargo. Trips to and from the terminal, fueling up, trips for maintenance or vehicle servicing, use during layovers, dead-heading (driving without a load), and even getting the truck washed may be considered using the auto for a business purpose. Business use would be covered by the motor carrier’s primary liability insurance.
Non-Owned Vehicle Insurance,
Non-Owned Vehicle insurance extends the coverage provided under the Bodily Injury Liability coverage and Property Damage Liability coverage of your policy to any vehicles not owned by you or your business that are used by any of your employees for business.
A person who is not the primary or principal driver of an insured vehicle is an occasional driver.
On-Hook Towing Coverage,
On-Hook Towing Liability coverage provides physical damage coverage for a customer's auto or watercraft while you are towing it. The protection includes damage caused by fire, theft, explosion, vandalism or a collision.
A truck driver who works as an independent carrier of goods instead of as an employee of one trucking company is an owner operator. The term can also be hyphenated and written as "owner-operator."
Partnerships are frequently composed of groups of professionals, such as attorneys, accountants and lawyers, but may also be retail and service businesses.
Permanently Attached Equipment (PAE),
Equipment that is used in the course of doing business and is bolted or welded to an insured vehicle or trailer is permanently attached equipment. Examples of PAE include:
- Air compressors
- Carpet cleaning equipment
- GPS units (mounted in vehicle)
- Ladder racks
- Lift gates
- Lift kits
- Logging equipment
- Pressure washers
- Snow plows
- Tool boxes
Equipment that is attached to the vehicle and makes the vehicle what it is, such as buckets, cement mixers, dump boxes, refrigerated boxes, etc., are not considered permanently attached equipment. Permanently attached equipment should be included when calculating the value of the vehicle for your stated amount.
Personal Injury Protection (PIP) Coverage,
Personal Injury Protection is the basic coverage implemented in no-fault automobile insurance states. PIP is a coverage in which the auto insurance company pays, within the specified limits, the medical, hospital and funeral expenses of the insured person, people in the insured vehicle and pedestrians struck by the insured vehicle. Depending on the state, PIP may also cover lost wages and additional expenses.
Physical Damage Coverage,
Physical Damage coverage is designed to protect your vehicle. There are several forms of Physical Damage Coverage, including Collision coverage, Comprehensive coverage and Fire and Theft with Combined Additional Coverages.
A placard is a metal plaque or other form of signage found on vehicles or trucks that displays a message to the public regarding the cargo being hauled, such as hazardous, flammable or explosive.
Policy Expiration Date,
Your current insurance policy ends on your policy expiration date, which is found on your current policy documents, Declarations Page (Dec Page), insurance identification card or recent cancellation notice. This date should not be confused with payment due dates.
It's also important to note that in many cases, the policy actually expires just after midnight at 12:01 a.m. on the policy expiration date. This means that as of 12:02 a.m., there is no coverage.
The length of time your policy is active and in force is your policy term.
A premium is the amount of money paid to an insurance company in return for insurance protection.
A primary address is the place where you would like all communications mailed. This is typically your business headquarters.
Primary Liability Insurance,
Primary Liability insurance is Liability coverage for all trucking situations including empty and loaded vehicles.
Primary Use ,
Primary use is how you mainly use your vehicle. Primary use options include:
- Business use only
- Personal use only
- Personal and business use
- Nonbusiness use
Principal Driver ,
The person who drives the car most often is the principal driver.
Property Damage Liability Coverage (PD) ,
Property Damage Liability is the second part of Liability Coverage. If an insured person is legally liable for an accident, Property Damage Liability coverage pays for damage to others' property resulting from the accident. Property Damage Liability coverage also pays for legal defense costs if you are sued.
Radius of Operation,
The maximum distance traveled one way, as the crow flies, by an insured, from the point of garaging to the point of delivery, is the radius of operation. Depending on your state, Progressive has a 300- or 500-mile limit on radius of operation for certain types of businesses.
Repair plates are license plates issued to businesses that repair, alter, recondition, equip or tow motor vehicles or trailers for the public. The plates are not assigned to a specific vehicle, which makes them unacceptable for insuring with Progressive.
Repossession is reclaiming ownership of an item, such as a vehicle, because payments have not been made. Towing companies may perform auto repossession work for-hire. Progressive cannot insure towing companies that earn more than 25 percent of their income from repossession work.
Single Deductible Endorsement,
The Single Deductible Endorsement is automatically applied to all vehicles with Physical Damage coverage. Instead, you are only obligated to pay the highest deductible, while the others are waived. The Single Deductible Endorsement is automatically applied to all.
A sole proprietorship is a one-owner company that is not registered with the state as an LLC or corporation. The owner of a sole proprietorship is personally responsible for the debts and liabilities of the company and reports the company's losses and profits on his or her personal taxes.
A series of three numbers (ex. $15,000/$30,000/$10,000), split limits describe the predetermined maximum amounts to be paid on Bodily Injury Liability coverage and Property Damage Liability coverage per person and per occurrence or accident.
Example: A split limit of $15,000/$30,000/$10,000 would pay out, per accident, up to $15,000 in Bodily Injury Liability coverage for each covered person injured in the accident and up to a maximum total of $30,000 for all covered people injured in the accident. It also would pay out up to $10,000 in Property Damage Liability coverage.
A stated amount is the value submitted by the insured as representative of the current value of an insured vehicle, after accounting for depreciation and including the value of any special or permanently attached equipment.
Trailer Interchange Agreement,
A trailer interchange agreement is a written contract between truckers or trucking companies that provides for the loan of trailers by the owner to a third party.
Example: Joe's Trucking Company has a trailer interchange agreement with Sue's Trucking Company. Joe hauls a trailer full of cargo from point A to point B. Sue takes Joe's trailer and hauls it from point B to point C for Joe.
Trailer Interchange Coverage,
Trailer Interchange coverage provides Physical Damage insurance for trailers that you do not own while they are in your care, custody or control, such as being hauled under a trailer interchange agreement.
Uninsured Motorist Coverage (UM),
If a driver or owner of a vehicle does not have insurance and is legally liable for an accident, you can use UM coverage for injuries, including death, that you, your resident relatives and occupants of your insured vehicle sustain, up to the limits that you select.
Underinsured Motorist Coverage (UIM),
If a driver or owner of a vehicle is legally liable for an accident but does not have enough insurance, you can use UIM coverage for injuries, including death, that you, your resident relatives and occupants of your insured vehicle sustain, up to the limits you select. In some states, UIM coverage is included as part of UM coverage.
Uninsured/Underinsured Motorist Property Damage Coverage (UMPD),
If a driver or owner of a vehicle is legally liable for an accident but does not have insurance or does not have enough insurance, you can use UMPD to cover damage to your insured vehicle, up to the limits you select. UMPD is not available in all states and may be available as an alternative to Collision coverage in others.
Vehicle Identification Number (VIN)
A VIN is a combination of 17 letters and numbers that can be used to identify the make, model and year of a car. The Vehicle Identification Number (VIN) for a vehicle is usually found on the driver's side of the dashboard, the vehicle registration or the title.