California Commercial Vehicle Insurance
If you drive a commercial vehicle (big rig, delivery truck, bus, etc.) in California you should be aware there are certain legal requirements for vehicle insurance that you must maintain. Because commercial vehicles can often carry hazardous materials or precious cargo (such as our children) the insurance requirements for them are much higher than traditional automobile coverage.
Not all insurance companies offer commercial vehicle insurance. Some companies that specialize in auto coverage have a separate division that handles heavy vehicle insurance underwriting. Many times you can consult with your agent who can inform you of their coverage availability or refer you to another insurer who may be able to handle your commercial needs.
Some of the requirements for getting coverage of these larger vehicles can include specialized driver training requirements as defined by the state of CA. Often drivers must have a special endorsement or license to drive such vehicles. Regular inspections are usually mandatory for such vehicles as well to help maintain safety on the road. It is not uncommon to see random inspection points setup across the state to do spot checks of commercial trucks and other vehicles.
If you have any questions about the availability of coverage or the minimum requirements necessary you should contact the state department of motor vehicles who will explain detailed coverage requirements based on the type of vehicle and for what purpose it will be used for.
What Exactly is Commercial Insurance?
So what is Commercial Insurance?
Put very simply, Commercial Insurance is protection for your business. From new start businesses to those well established; an unexpected event could destroy your business if adequate cover isn’t in place.
With so many insurance products and providers, it would be easy to think Commercial Insurance was a complicated matter. It doesn’t however need to be this way. Commercial Insurance can easily be broken down into 3 keys areas:
1. Keep it legal
2. Protection
3. How to buy
Keep it legal
Certain types of cover are required by law. Employers Liability insurance, which covers claims from employees for accidents and sickness they may suffer as a result of working for your business, is one type of cover that must be purchased. You will also need to purchase at least third-party motor insurance for all motor vehicles used by the company.
Protection
Ensuring you have the right cover and protection is vital so time should be taken to ensure you find a policy (or policies) that give you exactly the level of cover you require. This again need not be a complicated task if you break down your requirements:
Insure your people – many firms are often dependent on the people they employ. Insurance is available which will protect the business in the event of employees being unable to work. Types of cover available include Keyman insurance, income protection, directors & officers insurance and private health & critical illness cover.
Insure the common risks – certain risks are common to all businesses. These include fire, theft and equipment failure. It is worth investigating (or getting someone to investigate for you) whether common risks such as buildings and contents insurance, cover for money and goods in transit and business interruption insurance can be covered under an all-risks type policy. This may save your business time as well as money.
Specialist cover – depending on your industry and requirements, policies can often be packaged together with some even being industry specific with packages tailored to cover specialist sectors like engineering or manufacturing. Other specialist cover available includes public and product liability and professional indemnity cover.
How to buy
Commercial Insurance is more often than not purchased using an Insurance Broker. The benefit of using a Broker is that they are insurance professionals who can recommend policies to you whilst searching the market to find you the best possible deal.
A good Broker will offer a personalized service and will understand your needs and that of your business. When looking for an insurance provider it is often worth checking to see if they are well established, have schemes with the leading insurance companies and whether they offer a local and personalized service.
If you follow these simple tips then the chances are you and your business wil get the right cover, protection and peace of mind.
This article was written by Mark Burdett, Marketing Manager of Northern Counties Insurance Brokers. Mark has over 17 years Marketing experience in the Financial Services industry and has worked on campaigns for companies including Norwich Union, Kia and Zurich.
Now based in Newcastle upon Tyne Mark is Marketing Manager for one of the UK’s Leading Insurance Brokers - Northern Counties Insurance Brokers.
Commercial Liability Insurance
Liability insurance is when you cover any visible or possible liability that you may have with proper insurance. When businesses or commercial establishments purchase insurance to cover their liabilities, it is called as commercial liability insurance.
For any commercial firm, the commercial liability insurance pays part of or the entire amount of the damages caused by liabilities of the company that may have been imposed due to business-dealings or by law. It also has the potential to pay for the cost of legal defense in case of any claims. Adequate commercial liability coverage is a must to survive in business. Without it, a commercial firm would have to bear the cost of damages itself.
One has many options of applying for commercial liability insurance. However it is the insurance company that, by using their underwriting standards, determines if the business is eligible for insurance and for how much. The insurance companies have classifications on businesses, and any new commercial liability insurance has to fall in one of those classifications. This means that even a company with a totally clean record might still have to pay a high premium for commercial liability insurance.
Insurance is mostly sold directly by a company or through their agents and brokers. There are also individual and independent agents that, unlike exclusive agents, at times represent several insurance companies.
If one is considering buying commercial liability insurance, he or she should remember to contact several liability insurance agents and look around for various companies. At the same time, the firm should also ensure that it thoroughly understands what it is buying.
Often an independent agent can be a good source to provide comparisons on various commercial liability insurances policies available. However, one should remember to properly search around and even surf the internet to do some research on his or her own, before finally opting for one company and policy over another.
Also, do remember to check that the agent you choose has experience in your line of business and whether he or she is licensed to do business in your state. You can find about an agent’s license from the Commissioner of Insurance by calling them up or visiting the website.
Commercial Auto Insurance - How’s It Different From Common Insurance Coverage
Commercial auto insurance may not be as commonly availed as other types of insurance. But it’s sort of essential for the class it’s meant for - the small and medium sized business enterprises. Incidentally, that’s the chief difference between commercial insurance for automobiles and other common types of auto cover. This coverage specifically caters the companies having several vehicles.
In order to get more business, various companies engaged in selling commercial policies generally offer various kinds of discounts and reasonable premiums. This type of coverage generally comprises six different types of policies. Only some of the types, like third party insurance are mandatory as per law. Due care should be taken to include only those options on your policy that are relevant to your needs. Otherwise, you will end of up paying too much as premium, because all options have their separate premiums. Having understood the basic difference between auto insurance and other types of policies, it is not out of place to look at some other aspects of commercial policy.
Commercial Insurance - Understanding The Significance
Commercial insurance for vehicles is actually a measure to safeguard your company against possible losses owing to accidents involving vehicles belonging to your company. It is not too hard to imagine the catastrophic effect that accidents involving vehicles of your fleet might have on the financial affairs of your company.
Is It Available Online?
Like other types of indemnity, commercial auto insurance is also readily available online. In fact, you will find much better offers for insuring your fleet online than you would in case of companies having physical locations. Online companies offer handsome discounts as well as comparatively low premium amounts.
However, getting policy entails payment of more money compared to common types. Therefore, you must be doubly cautious to steer clear of fake companies operating through Internet. Even when you procure coverage from companies whose reputation is established, don’t ignore to read the terms & conditions in totality.
What Is It Composed Of?
There is no difference in the composition of a commercial policy and other types. In fact, all indemnity policies are divided into three parts: declaration, insuring agreement and terms & conditions. While it’s important to go through the complete document, specific emphasis must be laid on perusing the terms & conditions part. Careful scrutiny is especially important in case of commercial insurance, because it’s actually a combination of different policies. You should get exactly what you require and what you pay for.
How To Get The Best Commercial Insurance Quotes In The United Kingdom
COMMERCIAL insurance is a competitive market in the United Kingdom with hundreds of insurance providers vying for business. In such a situation, how will you go about getting the insurance your business requires at the best price? Well, there is no rule of thumb in this, but the following sources can be helpful.
UK Commercial: This is an internet-based service that provides commercial and business insurance quotes. It provides a long list of sectors, and you have to click on the sector relevant to you. This opens up a page providing useful information pertaining to your sector. It also provides a form for you to fill and submit online. Once you have done this, a commercial insurance representative will revert to you with quotes and advice.
Quoteline Direct: This service provider is authorized and regulated by the Financial Services Authority (FSA) and has been in business for more than 30 years. Some of the most reputed commercial insurance companies converge on this online resource. These companies offer cover against risks faced by small businesses, wholesalers, and manufacturers. You select your business category, and complete and submit an online form to get an accurate quote.
Insurance Expert: Here, you have to enter your post code to get a list of commercial insurance brokers in, or nearest to, your area. The list will include their telephone numbers, street address and a roadmap to their office. You can browse for brokers on the basis of your specific trade. Then, you contact the broker/s of your choice and negotiate directly with them.
Insurance Now: This is a place where independent insurance intermediaries meet. It has a business insurance directory plus information for your guidance. You can get a customized quote if your business is one of the following: construction, building, consultants, surveyors, entertainment, leisure, general trades, health, beauty, professional and retail. It also provides links to intermediary agencies.
UK Net Guide: This has 14 sections, of which one is money and finance. A sub-section of ‘money and finance’ is insurance. From here, you can obtain instant business and commercial insurance quotes. It also lists 75 commercial insurance and brokers whom you can get in touch with.
To conclude, there are many ways of going about getting the best quotes for your business and commercial insurance needs. The rule is: don’t take any one insurance service provider’s quote. Get at least three quotes and choose for the best. Insurance is a highly regulated industry; so there is little chance that anyone can cheat you if you exercise the minimum caution such as getting deals in writings and paying only by cheque.
RIMS Benchmark Survey Reports Commercial Insurance Premiums Continue to Decline During Second Quarter
Directors and Officers, Workers’ Compensation and General Liability Premiums Drop; Property Premiums Remain Stable
NEW YORK — Commercial insurance premiums continued to decline during the second quarter of 2007, according to the RIMS Benchmark Survey[TM], the industry’s leading comprehensive survey of current policy renewal prices as reported by corporate risk managers.
RIMS Benchmark Survey[TM] second quarter reports show that directors and officers liability (D&O) continued to drop, falling an average of 7.29 percent since last year. Workers’ compensation also continued its steady downward slide, though at a lesser pace, to 1.82 percent as compared to -3.8 percent in the first quarter. The slower pace of premium erosion in workers’ compensation may be due to reform measures in large states such as California and Florida having now worked their way through the system, according to an Advisen analysis. General liability premiums continued a downward trend with a decrease of 1.16 percent.
Reports from the RIMS Benchmark Survey[TM] also show that property insurance exhibited no change, despite rate decreases reported by 70 percent of survey respondents during the second quarter.
“The good news for risk managers is that property insurance has turned a corner,” says Joseph Restoule, CIP, CRM, RIMS secretary and member of the board of directors. “Although there was no change on average, more than two-thirds of RIMS Benchmark Survey[TM] respondents had premium decreases on their property programs this past quarter, including companies with coastal exposures.”
“Premiums have been falling in most lines since the end of 2003, and the soft market shows no signs of letting up,” says David Bradford, editor-in-chief of Advisen. “However, hurricane season is now underway, and forecasters predict it will be a much worse than average year. Severe catastrophe losses could not only send property premiums shooting higher, but could also cause the overall soft market to come to a halt.”
Risk managers who contribute data to the survey can benchmark the structure of their commercial insurance programs, retained loss costs, exposure demographics and Total Cost of Risk (TCOR) against a highly relevant group of peer companies. Additionally, survey respondents can use software personalized and configured for their needs to view detailed schedules of insurance, programs for current and past years and full-color program tower charts. Both benchmark charts and program charts download into any presentation for senior management. The results of the RIMS Benchmark Survey[TM] are available online or in an annually published book. Visit www.RIMS.org/benchmark for details.
About the Risk and Insurance Management Society, Inc
The Risk and Insurance Management Society, Inc. (RIMS) is a not-for-profit organization dedicated to advancing the practice of risk management, a professional discipline that protects physical, financial and human resources. Founded in 1950, RIMS represents nearly 4,000 industrial, service, nonprofit, charitable and governmental entities. The Society serves more than 10,000 risk management professionals around the world.
Identity-theft insurance products gain in popularity
According to a study by Pleasanton, Calif.-based Javelin Strategy and Research, an independent financial-research group, 8.4 million Americans were the victims of identity theft in 2006.
The study added that adults under 25 and individuals who earn more than $150,000, annually, were among the most likely targets of identity thieves.
Insurance companies have taken notice of the fraudulent trend and are offering policies to protect consumers against identity theft.
Travelers Casualty and Surety Company - a member of the St. Paul Travelers Companies, Inc. (NYSE: STA) and the second largest underwriter of commercial property-casualty insurance in the United States - has partnered with the American Safety Council, Inc. (ASC), an Orlando, Fla.-based organization devoted to providing educational courses for court systems and state agencies.
The companies say they offer the first stand-alone identitytheft insurance policy that covers policyholders and their entire family living at home. A stand-alone policy is separate from homeowners’ insurance.
The policy was initially offered six months ago, says Joseph Lester, an identity-fraud product manager with Travelers Insurance in Orlando.
This stand-alone policy from both Travelers and the ASC is offered as additional coverage in conjunction with existing homeowners’ insurance.
“So far, the product is not doing too bad in New York,” he says. “Unfortunately, I don’t see the trend of identity theft stopping, so it will probably continue to do well.”
“We’ve seen some strong growth in the demand,” Lester adds. Both declined to provide specific revenues and policies sold.
The policy is already available in 15 states, including California and Illinois.
According to ID Analytics Inc., a San Diego, Calif.-based fraud-security firm, New York is one of three states with residents most at risk for attempted identity theft. Manhattan and Brooklyn residents are the most likely to be targeted.
According to Lester, the identity-theft coverage has three components. First, if the victim incurs out-of-pocket expenses, Travelers will reimburse that money up to $25,000 with no deductible. The outof-pocket expenses typically consist of lawyer’s fees and lost wages from time off work. Lost wages are covered up to $500 per week for a month.
Second, the identity-theft fraud directloss protection will reimburse the customer for lost bank funds up to $30,000.
Third, the policy covers any money or valuables within a safety-deposit box if it is lost or stolen, also up to $30,000.
The lowest premium for the policy starts at $49, annually.
“At Travelers, six identity-theft engineers put products together daily,” Lester explains. “Identity theft is on the minds of a lot of people.”
The identity-theft policy is the only type of insurance Travelers has available online, says Lester. Subsequently, Travelers has created a push-button policy that enables a consumer to buy the insurance online.
“After a person completes and pays for the policy, they can print the policy and it goes into effect immediately,” Lester says.
Travelers sells automobile insurance, homeowners’ insurance, and a number of other products, including boat insurance, valuable items insurance, wedding insurance, and the identitytheft protection program.
Travelers offers two identity-theft policies that are separate from the stand-alone ASC/Travelers policy. First, a company can purchase identity-fraud coverage for a group of employees, Second, an individual who has Travelers homeowners’ insurance can purchase an identity-theft fraud endorsement. This endorsement can be added to an existing Travelers homeowners’, condo, or renters’ policy at a cost of $25 annually.
Lester says that St. Paul Travelers Companies currently has around 4 million people insured for identity theft.
“We advise our customers to seriously consider the policy,” Czaplicki says. “I would say that out of 10 people, 40 percent decide to go ahead and purchase the product.” The Allstate policy is offered for $40 and can be added to an existing homeowners’- or automobile-insurance policy.
The identity-theft policy offers $25,000 worth of coverage.
“When you buy that coverage, you get restorative services,” Czaplicki explains. “Our agents will file the necessary paperwork, issue fraud alerts, and work with the credit agencies to correct and restore your credit.”
Recent Developments in Political Risk Insurance in the Asia Pacific Region: An Antipodean Perspective
THE ASIA PACIFIC REGION: AN INTRODUCTION
The nature of political risk in the Asia Pacific region is fundamentally influenced by the variety and diversity of the countries in the region. That, in turn, results in considerable diversity, firstly in the types of political risks faced by foreign investors in the region, and secondly in the nature of the legal issues such risks give rise to when they crystallize. A brief look at some of the countries in the region should suffice to illustrate this diversity. The region includes:
* members of the G8, the United States and Japan;
* smaller though relatively wealthy industrialized countries such as Australia, and New Zealand;
* newly industrialized countries (”NICs”) such as Singapore, Taiwan, Korea, and Hong Kong;
* major rapidly emerging economies, such as China and India;
* emerging, though often troubled economies, such as Indonesia, Malaysia and Thailand; and
* many low income countries including many pacific island states.1
The region is generally regarded to have recovered from the financial crises that plagued it in the late 1990s. Rapid but uneven growth, and continued economic integration once again characterize the business environment in the region.2 Against this background, political instability in some of the low income countries of the region has led to a number of instances of armed violence, and in some cases, insurrection. That, in turn, has resulted in a number of insurance coverage disputes of a traditional nature, which are examined in more detail in the second and third sections of this article, where we draw directly on our recent successful experience in defending political risk insurance (”PRI’) litigation in Fiji. The international nature of such litigation often raises private international law issues, which may be a fertile area for dispute in a PRI context, and which we examine in the fourth section of this article. By contrast, economic growth has, in recent years, resulted in a complex interplay of commercial law and public international law in the area of foreign direct investment (”FDI”), which is examined in the final section of this article.
Recent media attention has focused on Asia Pacific regional instability and the increasing incidence of political violence in certain countries. Many people around the world are aware of the turmoil that engulfed the region after the Asian financial crisis in the late 1990s. That turmoil gave rise to a number of insurance and reinsurance disputes; for example, the riots in Indonesia in 1998 formed the background to the decision in Mann v. Lexington Insurance Co.
Recent instances of political and ethnic violence in the region have included:
* the attempted coup led by George Speight in Fiji in 2000;
* the near collapse of the government in the Solomon Islands in 2000, resulting in (a continuing) military and police intervention led by Australia; and
* most recently, in 2006 rebel “militia” activity in East Timor, also resulting in military intervention by Australia.
These events often impact insurers. They often give rise to the kinds of coverage disputes under property and ISR policies with which insurers and their lawyers will be familiar. In addition, more sophisticated foreign investors may have arranged PRI cover dealing specifically with those risks. The risks are most often insured into the major insurance markets such as London.
As a result, many such disputes will be determined in either judicial or arbitration proceedings in England, but that is not always the case. Insurance contracts, particularly property and ISR policies protecting local interests, may often provide for local law and jurisdiction. European and North American insurers may have sufficient experience before Australian and New Zealand courts to enable them to take a view on the desirability of underwriting insurance contracts that may be subject to Australian and New Zealand law, but if these issues are before a local court or tribunal in a smaller country, can they rely upon the court to reach the right result? Happily, the recent Fijian case Tappoo Holdings Ltd. v. Stuchbery4 serves to illustrate that in some countries they can.
Van & Commercial Vehicle Insurance - What You Need To Know
Many van drivers and commercial vehicle owners often rely heavily on their vehicles as a source of income. For this reason it is important that you look after your vehicle well and make sure you are sufficiently insured should anything go wrong.
One of the most important factors of insuring your commercial vehicle is making sure you have the right cover for you vehicle and it’s intended use.
Commercial Insurance
Commercial vehicle use is often defined as:
   The use of a vehicle for transporting goods or passengers for reward; hiring a vehicle, or use of the vehicle for paid driving instruction.
The second two points in that statement are fairly self explanatory, but the first part can be somewhat ambiguous. Transporting passengers includes services such as taxis or chauffeur driven vehicles. The transporting of goods can include delivery items such as pizzas or flowers or moving stock from a supplier to your shop. Some insurers can provide commercial insurance only for transporting light goods which can save you money.
Fleet Insurance
If you or your business has more than one van or commercial vehicle, you an save money (and time) by getting fleet insurance. This can be anything from a couple of delivery vans to an entire road haulage fleet. Again, make sure the cover offered is sufficient for the types of use of your vehicles.
Goods in Transit
Most commercial policies will not automatically provide cover for any goods or tools in your vehicle. “Goods in transit” insurance can normally be purchased separately and added on to your existing commercial insurance. Note that the amount insured may be a limited sum for each vehicle and will based on the value of the contents. Goods in transit insurance will provide cover for:
   * Theft (while in transit)
   * Loss (while in transit)
   * Damage caused by accidents during transit
   * Damage caused during transit
Commercial Insurance Costs
Because of the wide variety of commercial vehicles on the road, commercial insurance calculations and prices can be significantly different from regular private car insurance. Most vans and commercial vehicles have an increased capacity of to cause damage or injury because of their size and weight. This represents a higher risk for the insurance company as they are likely to be required to make a bigger payout in the event of an accident. Other factors considered include laden weight of the vehicle; nature of the load(s) to be transported, addition of special equipment etc.
Despite these factors, which can make commercial vehicle insurance expensive, there are still things you can do to try and get cheaper commercial vehicle insurance.
   * Keep your can in a garage or other secure location overnight
   * Increase your voluntary excess (but make sure you can pay it in the event of a claim)
   * Fit a Thatcham approved immobiliser
   * If you need other drivers to drive the vehicle, put them down as named drivers rather than having an “any driver” policy
   * Try to avoid making claims where possible
Business Insurance is Not an Option - It is a Necessity
A woman walks into the restaurant you own, and is tripped up by a nail sticking out of the floorboards. She seems fine, but a week later she is back with an attorney and a neck brace. Apparently she hit her head in that fall, and isn’t doing so well. Or perhaps you are a mechanic and a customer wandered into your shop and cut his leg. Perhaps you own a pet store and a little girl got a nasty bite from sticking her fingers in the mouse cage. Whatever your business, liability is just a part of the cost of doing business.
It is almost impossible to run a business without liability insurance, and in many places it is a legal necessity as well. Business insurance covers liability cases so that a risk you cannot afford (like paying someone else’s medical bills) is replaced by one that you can afford (such as a monthly premium).
Other types of liability include fire legal liability, which means that you are the liable party in the case of a fire. If you forget to turn of a space heater before you head home for the night and this results in damage to your landlord’s property, then you are liable and the damages are covered by the fire legal liability part of your business insurance.
Liability is not the only type of insurance to be covered by business insurance. Business insurance can also function like a home owner’s insurance policy for the office, protecting the building (if you own it) and the equipment and possessions that are inside. What responsible homeowner does not have his home protected against fire? Shouldn’t the same precautions be taken for your business as well?
If your business were to be destroyed, a business insurance policy would cover things like desks, chairs, seating in your reception area, computers, equipment, and anything else of value that is a part of your business operation. Business insurance can also provide coverage against things like loss of income, earthquakes, and in some areas even flooding.
If a natural disaster takes your business away from you, then your business insurance policy is there like an umbrella, helping to protect you and your family from the losses and breaking your fall, so to speak. Your business insurance policy is there to help you rebuild and go on with your life.
If you are an employer, you are also required to have worker’s compensation insurance. This insurance protects you in the event that one of your employees in injured on the job. Your insurance will pay for treatments for your injured employee.
Other insurance might include insurance for your company vehicles in the case of an uninsured or underinsured driver, health insurance for yourself and your employees, and life insurance. Taking good care of your employees and offering benefits to them is a sure way to attract and keep the best employees possible.
One little accident could just about destroy a small business unless that business is insured against the disaster. If you could prevent an emergency situation, why wouldn’t you? Taking care to make sure that your business is insured properly and thoroughly is only one step toward running a successful business, but it is a vital one. Insurance is not an option, it is a necessity.