Monthly Archives: June 2015

Why Your Business May Need Commercial Auto Coverage

Does your business need commercial auto coverage? Like many small business owners, you may assume that your personal auto policy affords all the coverage you need. You may also assume that your policy will protect you if you are involved in an accident while driving a vehicle you use for business. Neither assumption may be true.

For one thing, most personal auto policies exclude certain business-related risks.

Business Exclusions

Here are some business-related exclusionsthat are commonly found in personal auto policies:

  • Commercial Auto Exclusion Many policies exclude the use of a vehicle by someone employed or engaged in a business other than farming or ranching. This exclusion doesn’t apply to a private passenger vehicle or to a small pickup or van not used for delivering or transporting goods and materials. Generally, a truck or van is “small” if it has a gross vehicle weight under 10,000 pounds.  The “commercial auto” exclusion is open to interpretation. However, if you use a small truck or van for making deliveries to customers or for hauling tools to a job site you should seriously consider purchasing a commercial policy.
  • Auto Business Exclusion This exclusion applies to autos used in a business that involves selling, repairing, parking, storing or servicing autos. Examples are a dealership and a repair shop.
  • Livery Exclusion Virtually all personal policies exclude the use of an auto (truck or private passenger type) for transporting people or property for a charge. Examples are taxis and vehicles used to deliver pizza or packages.

Inadequate Limits

Most personal auto policies do not provide a liability limit that is adequate for a business. The maximum limit available from a personal auto insurer is typically $500,000. Commercial auto insurers, on the other hand, readily provide a $1,000,000 auto liability limits. Don’t skimp on liability insurance! It is money well spent. A single accident involving a serious bodily injury could result in a huge liability claim against you. If you don’t have adequate liability insurance, one claim could put your firm out of business.

Sole Proprietorship

Suppose your business is a sole proprietorship and you need to purchase a commercial auto policy.   Note that most personal auto insurers will not issue a policy covering autos registered to a business (other than a sole proprietorship).   If your vehicles are registered in the name of a corporation, partnership or other type of business entity you will need to purchase commercial auto coverage.  Can your family members be insured under your business policy? The answer is yes, they can be insured under a commercial policy via the Named Individual Insured Endorsement.

Commercial (Business) Auto Insurance rates are lower than most may think.   Marc Perez at All Contractors Insurance and Bonds has decades of experience in providing affordable commercial auto insurance to businesses in Washington State, Oregon, and Utah.  Call Marc Perez at 253-252-2533 for a quote today.

What are Contractor License Bonds?

The Washington Contractor’s Registration Act (RCW 18.27) requires electrical, specialty, and general contractors to post surety bonds to legally work within the state. These bonds are put in place to ensure that principals (contractors) do the following:

  • pay all wages and benefits to any person furnishing labor to him or her
  • pay all amounts that become due as a result of the principal’s breach of contract including negligent or improper work in the conduct of contracting business
  • pay any person who furnishes labor or materials or who rents or supplies equipment to the principal
  • pay all taxes and contributions due to the state
  • generally comply with the rules and regulations of RCW 18.27.040

Contractor license bonds in Washington State remain continuous until canceled by the surety company that issued the bond. The surety company can cancel the bond at any time by giving written notice of its intent to cancel to the Director of Labor and Industries. A cancellation or revocation of the bond or withdrawal of the bond suspends the contractor registration issued to the registrant until a new bond or reinstatement notice has been filed and approved. All Contractors Insurance and Bonds can issue these bonds for as low as $100, subject to qualification.  Good rates for contractor license bonds are easier to qualify for than ever.  We issue bonds daily for contractors with good credit, average credit, and poor credit.  We can even issue contractor license bonds for immigrants with a Tax ID Number (TIN).  Call Marc Perez at All Contractors Insurance and Bonds for a quote today at 253-252-2533.