Personal Auto - Seasonal Snow Plowing?

[insurance1822]

Hello,

Do you guys see any reason why you can't rate a pickup truck as BUSINESS use for an insured who will be doing seasonal snowplowing? It seems pointless to keep issuing a commercial auto policy only to cancel it after winter & vice versa. I'm sure if I call down to underwriting they won't like that BUT according to policy language I'm not seeing anything they could use to deny a claim?

 

[nyc2phi]

Seasonal snow plowing should be covered on a commercial auto policy. A personal auto policy won't account for the increased risk involved for a vehicle operating in nasty conditions as snowplow guys often do. I know my two main carriers wont take it on a personal if they know he is snowplowing.

These snowplow guys need to provide certificates of insurance on occasion. A personal auto with limits less then 1MM usually won't suffice on a cert.

Why not keep the vehicle on the commercial auto policy all year around instead of switching it back?

You should also cross-sell the GL for this guy if you haven't already. The GL is especially important if he is salting.

Hope this helps.

 

[Herkster]

Hello,

Do you guys see any reason why you can't rate a pickup truck as BUSINESS use for an insured who will be doing seasonal snowplowing? It seems pointless to keep issuing a commercial auto policy only to cancel it after winter & vice versa. I'm sure if I call down to underwriting they won't like that BUT according to policy language I'm not seeing anything they could use to deny a claim?

Have you heard the horror stories of pizza delivery drivers that get in accidents and only carry personal auto coverage and having a claim denied?

It's a commercial risk because you are using your vehicle for "business pursuits", which is automatically excluded in any personal lines policy language that I've seen.

I agree with the response below, it needs to be written as commercial. Also, if you call to cancel it in the spring, I'd bet you won't be able to place it with the same carrier next winter. The premium for it is spread over 12 months, not 3 months, which affects how it's rated. Min premium here is $300.00 over 12 months, so if he did it for three months, he'd pay $75 then cancel it? Seems sketchy.

Think of it like a snowmobile policy, yep, they have limited use, but you don't write the policy in November and then cancel in March.

 

[insurance1822]

Have you heard the horror stories of pizza delivery drivers that get in accidents and only carry personal auto coverage and having a claim denied?

It's a commercial risk because you are using your vehicle for "business pursuits", which is automatically excluded in any personal lines policy language that I've seen.

I agree with the response below, it needs to be written as commercial. Also, if you call to cancel it in the spring, I'd bet you won't be able to place it with the same carrier next winter. The premium for it is spread over 12 months, not 3 months, which affects how it's rated. Min premium here is $300.00 over 12 months, so if he did it for three months, he'd pay $75 then cancel it? Seems sketchy.

Think of it like a snowmobile policy, yep, they have limited use, but you don't write the policy in November and then cancel in March.

Apparently he's going to be subcontracted to do a few parking lots & I'd be willing to bet the money he'll make won't even cover the increased cost to put it on a commercial policy. He will probably plow 5x all year. That's why I was curious. Business use applies to what...realtors driving buyers around?

 

[nyc2phi]

If he's doing commercial snowplowing he's 100% going to need commercial auto and a cert showing the coverage.

Yeah I have business use on my policy because I use my vehicle to visit clients and prospects at their home and place of business.

Realtor is a good example as well.

 

[Herkster]

Apparently he's going to be subcontracted to do a few parking lots & I'd be willing to bet the money he'll make won't even cover the increased cost to put it on a commercial policy. He will probably plow 5x all year. That's why I was curious. Business use applies to what...realtors driving buyers around?

I guess you make a valid point about realtors or even us, as insurance agents, driving around on the clock, visiting customers and prospects. I just know from my time working on the corporate side of things in insurance, most instances where someone is using their vehicle for something besides personal use, it needs to be written on a commercial policy.

However, it does make me wonder though, as my vehicle is insured through a personal lines policy, but I use it for work. Must be on of those many grey areas...