I am pretty close to winning a prospects commercial auto business. The have a fleet of vehicles (16). About 10 of those vehicles are owned by the owner and the other 6 are owned by the business. He has a formal lease agreement where he leases the 10 vehicles to his business. The questions is, is there any issue with that? Also, is this something underwriting should be made aware of?
Commercial Auto question
- Thread starter DJAJ
- Start date
- 783
Ideally they should be titled to the company. If not, Yes, they need to know, the yes they need a lease. Most likely they will then add an 'employee as lessor' endorsement. Sometimes the Carrier may have it included is some type of 'enhancement' option, that may also include a list of other additional coverage as well.
Without the lease and endorsement, the standard CA policy will not recognize the owners an 'insured', and has not duty to defend.
As for Commercial Auto, and you may know this already, but always offer the Carriers 'enhancement' or similar endorsement. Always include and offer hired and non owned auto. Always provide symbol 1, any auto endorsement, if available.
Congrat's on the sale! or almost sale....
- 5,285
I have done this with a fleet before. AZDave is correct. Double check with the carrier first, but this is doable. Really all you need to tell the carrier is that the vehicles are leased. No need to tell them WHO it is leased from.
Another option, especially if the most competitive carrier will NOT allow this, is to have the owner ADD the bizz name to the vehicle registration, which is easier than changing the vehicle registration, especially if he has a lease or loan that does not allow this. Make sure to put this in writing to cya in case he doesn't do it, or doesn't do it quickly enough. I have used this maneuver many times.
Dave and I will of course be expecting our standard 20% consulting commission upon close.
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