Be Aware: You May Not Be Covered When Using Your Personal Car for Business Purposes

There are lots of drivers out there who are driving around with personal auto insurance, but making money doing it, either by delivering something or someone, or providing a service that they get paid to do. They may not know it, but if they have an accident while doing this, their insurance company probably won't cover their claim!

Why? Because they don't have a commercial auto policy, which is required for any driving that is done for "business purposes".

If your employer lets you use a company car, then they are responsible for paying to insure it. You have nothing to worry about, since you are covered in the event of an accident while on the job. However, some companies expect employees to use their own vehicles when they’re on company business. This gray area between business and personal use raises a number of questions, and you don’t want to be without the proper coverage if you are involved in a car accident. It can get expensive!

If you don’t actually deliver a product, what constitutes “business purposes”? Some insurance companies define it as transporting goods for money. That could include activities such as:

• Daycare/church bus or van services
• Door-to-door consulting services
• Catering
• Landscaping or snowplowing services

Some companies even consider real estate agents as using their cars for commercial purposes. You need to ask your insurance agent now, so you don’t get denied if you file a claim down the road.

A good rule of thumb is if you’re using your car more than 50 percent of the time for business (to make money), then you probably need a commercial auto policy.



If you drive around all day making sales calls, you may only need to increase the liability limits on your personal auto policy. However, if you get direct compensation from the use of your car, such as making deliveries or using it as a taxi service, then you need a commercial auto policy. It may mean higher rates, but if you fail to divulge this to your insurance company and then you’re involved in an accident, the company may deny your claim if it discovers you withheld that information.

Using a Personal Car on Company Business

Big companies typically have commercial auto policies that cover employees while they’re traveling on company business. If you have an accident in this situation, you may have to file a claim with your own insurance company, but it’s also possible your employer’s insurance will pay. Check with your employer AND your personal insurance agent in advance so that you know where to turn in the event of an accident. You don’t want to be caught in the middle while the two companies point fingers at each other!

If you have an accident while on a business trip in your own car, make sure the insurance adjuster is aware that was a business-related trip. Your personal auto insurance provider shouldn’t deny your claim just because you were on a business, although it may try to recover the money from your employer’s insurance company.

How do you know if you need commercial vehicle insurance? 

Here are some important questions:

• What are your limits on liability? A commercial auto policy offers higher liability limits because a company has more assets to protect than most individuals, so the limits need to be higher. In addition, most commercial vehicles are larger than passenger vehicles, so they can cause more damage. If you have a large commercial-type vehicle that you use for work purposes, then you probably need a commercial automobile policy.

• Will your insurance policy cover damage your vehicle causes while you’re on the job? While a personal policy won’t, a commercial policy will.

• Do you have employees who drive your vehicle? If other people drive your vehicle for any work purposes, you need commercial insurance.

You also need a commercial automobile policy if the vehicle hauls tools or equipment weighing more than 500 pounds, makes deliveries or requires filings for interstate for-hire trucking businesses.

Don’t be caught driving a personal car for business-related activities while only carrying a personal auto insurance policy. The cost may be less, but if you are in an accident and it is determined to be work-related, your claim will be denied. That will end up costing you many times more than the commercial rate you would’ve been paying!

If you would like to find out if you need commercial auto insurance, one of our SAV-ON Insurance agents would be happy to help. Call 1-888-867-2866.

Sources: www.carjunky.com, www.insure.com, www.irs.gov

Ohio Workers' Compensation for Your Home or Business (repost from Oct 29th, 2009)

If you are in the State of Ohio and employ at least one employee to whom you pay $160 or more in a three month period, you are required to carry Ohio Workers’ Compensation. Your employee could be with your business or simply a babysitter or person you hire to mow your grass.

In Ohio you buy Workers’ Compensation from the State’s Bureau of Workers’ Compensation. Their website address is www.ohiobwc.com or you can call them at 1-800-OHIO-BWC.

Unfortunately your Homeowner Policy Personal Liability cannot help you in situations where you are paying the employee more than $160 in a quarter, so we highly recommend that you purchase an Ohio Workers’ Compensation policy if you are in this situation.

Workers’ Compensation pays for injuries to your workers and includes not only medical expenses but loss of income benefits, too.

The website at www.ohiobwc.com is actually very helpful. If you decided you need to buy a policy, you can do it all on-line including paying for the coverage and printing out a temporary policy to show you have the protection.

Please feel free to contact one of our friendly agents if you wish to learn more about workers’ compensation.

Safewindshields.com

A cracked or broken windshield is a very common driving incident. It can happen at any time and anywhere. It could be a bouncing rock that was kicked up from another vehicle or a blown truck tire that crashes into the windshield. What is even more unfortunate is that it could happen whether you are in town or out of town traveling.

Since a cracked or broken windshield is so common you would think it would be no big deal when and where you get it fixed. However, if you think about it, a windshield is the one major piece of the car that helps to keep you inside a vehicle incase of a head on collision. This could be a matter of life and death and when you put it in that light it becomes a little bit more important to make sure you have the windshield fixed and fixed by the appropriate shops. Auto Glass Replacement Safety Standards Council (AGRSS) works to certify and set stand for glass repair companies. Their website www.safewindshields.com, is a very helpful tool when it comes to getting your vehicle windshield replaced, especially if you are out of town traveling. The top right part of the screen has a “Registered Shop Locator” where you can type in a zip code and find the accredited glass repair shops near your current location. This way, even when you are out of town, you can find a qualified glass repair shop to fix your windshield and know that it will be installed correctly and securely.

So next time you get a rock in the windshield be sure to visit the AGRSS website or call your friendly Fey Insurance Services agent to make sure you get a high quality glass repair shop.

Legal Limits vs. Adequate Limits

Several auto insurance companies are doing a great deal of advertising about keeping you legal for less premium. What does that mean? All states including the District of Columbia, Puerto Rico and the Canadian provinces require you to carry Automobile Liability Insurance with certain minimum limits of coverage. In Ohio those limits are $12,500/person/$25,000/accident for Bodily Injury and $7,500 for Property Damage Liability. In Indiana and Kentucky the minimum limits are $25,000/50,000/10,000. In Wisconsin, for example, the minimum limits are $50,000/100,000/15,000. In some of the Canadian provinces the limit is $200,000. In short, if you carry the minimum required limits in a particular state or Canadian province, you are legally in compliance with that state or province's Financial Responsibility Laws.

But if you are legally in compliance, is that the same as adequate limits of liability protection? In our opinion, higher limits of protection are highly recommended to protect your assets, future earnings and driving privileges. For example, if you rear-end another party and cause serious bodily injury and/or property damage, your minimum limits Auto Policy might initially take care of the other person's medical bills, loss of income and pain and suffering and/or repair their car, but if it is not enough, the injured party could come after you for more. They could tie up your assets, you future earnings, your driver's license and car registration, etc. for long time. Even if you file bankruptcy they could still make it difficult for you to function while you are going through the process.

So what are adequate limits? Unfortunately there is no formula for determining this. With your home you can insure it for the replacement cost of the house using various estimation tools plus discussions with architects and contractors can help you determine the proper amount. There is no such simple formula to determine how much liability insurance to carry, but it is safe to say that Ohio's limits of $12,500/25,000/7,500 are not adequate even if they are legal in the event of a serious automobile accident. We would suggest limits of no less than $100,000/300,000/100,000 or $250,000/500,000/100,000 for your consideration. In addition, if you desire and need higher limits, buying a Personal Umbrella Liability Policy with limits of at least $1,000,000 or higher is highly recommended.

In Fey Insurance’s opinion, the minimum limits of protection imposed by states and the Canadian provinces are a start vs. no insurance at all, but they are not adequate to protect you in the event of a serious automobile accident.

Cell Phones: Both a Blessing and a Curse

The Blessing

Cell phones have become a standard equipment for many of us, as calling or texting has improved communication greatly. Not only do Mom and Dad have cell phones, but most of the kids do, too. Parents can keep track of their kids, business people can stay in touch with their customers -- whether they're sitting at their desk or out in the field -- and low-cost long-distance plans keep people in touch with distant friends and relatives that in the past was impractical and costly.

The Curse

Of course, there is a downside to the ubiquitous cell phone, such as when people in restaurants, movie theaters, or on public transportation loudly converse on anything and everything about their lives in public, ignoring the fact that most people don't care to hear it, or worse, are offended by it. Like most new technology, it's a lack of etiquette and courtesy on the part of the user that causes the problem, not the device itself. If you use a cell phone, please be aware that people around you may not want to hear your conversation, and find someplace private to talk. Just because you can talk just about anywhere, it doesn't mean you SHOULD. We don't want to know what you're planning for dinner. Really.

Hands-Free

For drivers, there are now bluetooth earpieces for cell phones that allow for hands-free driving, enabling commuters to conduct business while on the road, and friends and family to communicate. Now they can carry on conversations in their car, with their hands full, grocery shopping, or pretty much anywhere they choose. The convenience is liberating, but, once again, this can make it less than appealing to the people subjected to a bluetooth user's conversation, such as when they are in a public place and are seemingly talking to themselves. This can disturb people around them, and many times the device cannot be seen, so others mistakenly think someone is talking to them. This can be annoying or downright embarrassing!

Social etiquette aside, cell phones have brought an incredible amount of communication to our fingertips. The latest cell phones have everything but hot and cold running water. Most of it is just fun and games, but cell phones can perform some very important functions. Getting to know these features could come in very handy someday.
 

Features and Handy Tips:

GPS Technology
Disney has a cell phone with GPS technology that allows the parent to track the location of the handset. This was designed for parents with children between 10 and 15 years old. Parents can control the times and days the children use the cell phone, and the child can feel safer knowing that their parents know where they are when they're not at home.

Mobile Emergency # 112
(Finds existing network. Can be used even if keypad is locked)

If Keys Get Locked in Car

Call home and spare keyless entry button can be pushed on cell phone. You hold your cell phone about a foot away from car door and it will open it!

For Reserve Battery Power:
If cell battery runs out, push *3370# and you will get 50% power. Will recharge the reserve when recharged
 

Write Down Cell Phone Serial Number:
Push *#06# and a 15-digit code will display. Write down and keep in safe place. If phone gets stolen, give code to phone company and phone will be disabled.

Free Mobile Directory Assistance:
Instead of 4-1-1, which is a charged call, dial 800-FREE411 (800-373-3411) and there is no charge for directory assistance.

You may know of other tricks and tips in addition to the ones listed here. We'd love to hear about them!

2010 Discriminations Charges

The US Equal Employment Opportunity Commission (EEOC) recently released some very interesting data for the fiscal year of 2010. 99,922 workplace discrimination chargers were filed which set a new record. The types of claims that were filed where:

Retaliation Charges

Race-Related Charges

Sex Harassment

Disability

Age

National Origin

Religion

Equal Pay Act

Genetic Information Nondiscrimination Act

What is even scarier about this number for business owners is that Commercial General Liability (CGL) doesn’t cover these types of claims. Employment Related Practices claims are excluded under a business CGL. In order to have protection for these types of claims you must purchase Employment Related Practices Insurance. Be sure to talk with your insurance agent today about quoting this coverage for your business.

Do You Blog? Let Your Insurance Agent Know.

The Cincinnati Insurance Board in its January 2011 newsletter posted a great article about the risk that bloggers face. If you blog and or spend time writing in chat rooms on the internet you should contact your friendly Fey Insurance Services agent to discuss. Read why:

Blogging and the Possiblity of Lawsuits- CIB Jan 2011 Newsletter

A growing number of lawsuits are targeting individuals who blog or post allegedly libelous material on the Internet according to the International Risk Management Institute (IRMI). One report indicates a 216 percent increase in libel lawsuits against bloggers and online posters in the last few years.

These postings and blogs can result in nasty lawsuits. For example, earlier this year, a Florida man was sued for $15,000 over a negative remark he posted on eBay against the seller of a reportedly defective clock. A blogger in Georgia was sued for $2 million over his claims about the alleged misdeeds of a local government employee. Are these types of claims covered under a standard, unendorsed homeowners policy? What type of protection, if any, does the homeowners policy offer for these types of lawsuits?

The liability insuring agreement under nearly all homeowners policies pays for damages arising only from bodily injury or property damage, not from any type of personal injury, such as libel. In most cases, the only way that these claims might be covered is if the insured's homeowners policy includes a personal injury endorsement.

So it is a good idea to remind your clients who are active bloggers and online posters of the wisdom of procuring personal injury coverage and a personal umbrella policy (which typically provides even broader personal injury coverage). Clients should also be advised that if the blogging is related, say, to a home-based business, there will likely be no coverage under either of these options due to various business exclusions and restrictions. A home-based business endorsement is essential in these situations.

In addition, you should know that the Internet is not a law-free zone where anything and everything goes. There are ramifications to consider for those avid and active posters and bloggers, ramifications that can turn out to be painful and very expensive