Different Types of Coverages Which Are Required by Private Employers

Personal auto insurance is designed to help cover you, your vehicle, and anybody else who might be involved in an automobile accident. Commercial auto insurance is required for all vehicles that you use commercially for business purposes. In many states an automobile insured business can be sued personally by the clients of the business if there is damage to their vehicle due to somebody else’s fault. It is very important to know and understand the difference between personal and business auto insurance. Only when the terms are understood can you make an informed decision as to what kind of policy you want to purchase.

When you purchase a personal auto insurance for your private use, you are only covered for the damages which are incurred in a collision or as the result of theft or vandalism. If you are using your personal auto policy for commercial purposes then you will have more coverage than what is in the personal policy. This is why it is a good idea to purchase both a personal auto policy and a commercial policy from the same insurance company.

Commercial vehicle owners may need to obtain more coverage than states require. States often require a policy which will cover the owner for bodily injury and property damage in the event of a collision with a person or vehicle. Many states also require insurance coverage for damages which result from vandalism or theft. It is up to the vehicle owners to check the laws of their state or consult with insurance professionals before purchasing a personal auto policy which will cover these types of incidents.

A bodily injury and/or property damage bodily injury are a category which most personal auto insurance policies will include coverage for. Most companies require the insured to notify the insurance company within twenty-four hours of any accident in which a person is injured or damaged. This will be done in order to ensure that the company is informed of any accidents which may occur involving their employees driving a vehicle.

The next type of policy which will be covered by a personal auto insurance policy is liability insurance. Liability insurance protects an insured person if he or she causes bodily injury or damage to property while operating a vehicle. This policy was created to protect drivers and others who may be injured due to the negligence of the driver. In many states, there are limits to the liability insurance which can be increased if the insured does not follow the proper procedures. An increase in the liability insurance may also be required if the insured drives an extremely large vehicle or does not follow the speed limit.

Some individuals may need to purchase additional personal auto insurance coverages to ensure that they receive compensation in the event they are involved in a fatal car crash. In order to do this, many states require an individual to purchase loss of wages coverage. This type of coverage pays an individual for lost wages if they are killed, as well as any other lost wages which were contributed to the employer. If an individual loses their wages through a workplace accident, the employer must compensate them for lost wages. This coverage is often included in the personal auto insurance policy of the individual.

Author: Trimwell