If I use my personal vehicle to meet with customers do I need commercial insurance?
- Thread starter Spin
- Start date
Gustavo Fring
New Member
- 14
Old members with nothing to do. No money.
Al3x Lee
Guru
- 952
Says the guy who was a Farmer's agent and doesn't make enough appointments to justify a business endorsement on his PAP
I got plenty to do. Got to the camp at Eufaula, AL today and plan to stay a week or two. Going to set 30 jugs tomorrow morning for catfish. That's a chore. Then going to check them 3 times a day and bass fish in between. Usually catch 100+ pounds a day that has to be cleaned. Then find the time to grill a steak or fry some mullet. May even make a pot of gumbo or barbeque some chicken. So I got plenty to do.
I have been in this business a very long time so I am confident my renewals are way more than you make actively selling.
I have been in this business a very long time so I am confident my renewals are way more than you make actively selling.
- 2,624
Unfortunately, foolish people who read your comment may mistake it for advice.
Really? Upload the policy booklet and let's see.
In addition to the policy provision maybe you'll recall the application you signed that contains a statement similar to this one.
IT IS A CRIME TO KNOWINGLY PROVIDE FALSE, INCOMPLETE OR MISLEADING INFORMATION TO AN INSURANCE COMPANY FOR THE PURPOSE OF DEFRAUDING THE COMPANY. PENALTIES MAY INCLUDE IMPRISONMENT, FINES OR A DENIAL OF INSURANCE BENEFITS
Do what you like. Not my future at stake.
Don't have to. I retired from work 16 years ago.
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Gustavo Fring
New Member
- 14
Don't have to. I retired from work 16 years ago.
.[/QUOTE]
Oh, I see. You're too old, have little money, and have nothing to do so you attack people who said nothing to you in the first place. Congrats.
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[/QUOTE]Oh, I see. You're too old, have little money, and have nothing to do so you attack people who said nothing to you in the first place. Congrats.
- 5,290
Get a room you two. Sheesh.
- 2,624
Don't have to. I retired from work 16 years ago.
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Oh, I see. You're too old, have little money, and have nothing to do so you attack people who said nothing to you in the first place. Congrats.[/QUOTE]
Whatever.
- 783
Interesting thread....
Are you saying that if after a personal auto policy is issued, the insured must disclose any change in usage or Carrier can deny based on this fraud statement?
Too ab initio a policy is pretty extreme and difficult, so I am just not seeing this as a concern, and have yet to see in my experience, but I could be wrong as I am not in claims. Maybe if the Carrier finds out later or asks, then they can look to get off the risk thru material change and non renew. Have you personally seen Carriers use this fraud statement after underwriting is done and deny for a change in risk that occurred after inception?
One important point on this topic: If Insured has an LLC/INC and insists on insuring auto thru personal auto policy. When suit is brought against the Entity, there is no duty for the insurance company to provide defense if this is on a PAP. An Agent needs to bring attention to this and make sure insured is aware. If they insist on keeping with PAP, make sure they have high limits and rated for business use. If their Entity gets sued for negligence and there is not enough coverage, be prepared for the E&O claim.....
- 2,624
Yes.
Using my own auto policy as an example:
You must inform us if any information regarding the following is incorrect or incomplete, or changes during the policy period, and you must answer questions we ask regarding the following:
(1) Your car, or its use, including annual mileage; (2) The persons who regularly drive your car, including newly licensed family members; (3) Your marital status; or (4) The location where your car is primarily garaged.
I imagine all auto and homeowner policies have something similar.
Yes, it is. It takes careful investigation, an examination under oath, and a thorough review by the insurance company's lawyer, who has final say to do it or not do it.
Over a 7 year period and 6,000 claims I had only a handful of candidates and only one made it to deny and rescind.
No. Not purely in those words. Mainly because a denial and rescission tends to happen after a loss, when we find out what was misrepresented or concealed.
Insureds will generally report the obvious stuff during the policy term: change in cars, change of address, young driver moves away and gets his own insurance.
Sometimes the more subtle changes get forgotten. Like a change to business use for example and forgets to report it.
That's not likely to be much of an issue because, for a misrepresentation or concealment to be material one of the following issues must be addressed.
1 - The policy wouldn't have been written in the first place had we known of the business use.
2 - The policy would have been written with a higher premium.
3 - The policy would have been written with a reduction in coverage.
None of the three apply to the business use issue because the auto policy covers business use, for the appropriate premium with no reduction of coverage. We would just go back and surcharge for business use and pay the claim.
TBH I don't think that's much of an issue these days. Insurance companies have instant access to vehicle title information. The VIN will bring up the owner. If the LLC is the owner the insurance company isn't likely to write it on a personal auto policy no matter how much the applicant insists on it.
