Auto insurance is a must for small businesses

This story is especially relevant to business owners whose car or employee might be used for business purposes. This being said, how do you answer the true/false question. If you ask Shawn Steel, a Southern …

This story is especially relevant to business owners whose car or employee might be used for business purposes. This being said, how do you answer the true/false question.

If you ask Shawn Steel, a Southern California personal injury lawyer and author, you will understand why business auto insurance can be “the single most valuable asset that you have if things go horribly sour,” he said. Steel is a friend and lecturer on personal injury law. Steel is determined to help accident victims as well as ensure that medical professionals receive the proper compensation.

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Red Flag Warning to Employers and Employees

Employers need to be aware of the potential risks that employees may face when they use their personal vehicles for work purposes. It starts by being familiar with the limits of personal auto insurance liability. Many people have the minimum state limit for personal insurance liability. This is why most personal policies are very small. These limits are not sufficient to cover serious injuries. Some states require $15,000 per person in liability coverage.

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Learn the meaning of Scope and Course of Employment

Employers must understand the important legal concept of Course and Scope of Employment. Steel has provided an example:

Bob drives his car to work, and then one day causes an accident while returning home from work. He will be covered by his own auto insurance. If he takes a different route than his employer requests, such as to pick up lunch for his office staff, then his primary carrier should be his business insurance.

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He used a tragic accident to illustrate the incredible value of business auto coverage in his lectures for lawyers and chiropractors. This accident is a great example of why you should have adequate coverage.

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“An investigation revealed that he was delivering candy to one of his mother’s customers from her store on Sunday morning.

“They had business insurance including business auto in a million dollar limit. The insurance company paid them promptly. The insurance company promptly paid the money. Without it, the ranch and its business could have been sued. The ranch also had insurance. A million-dollar umbrella policy protected everyone in the family. Mom’s shop also offered $1 million coverage.

Appropriate Limits for Coverage

Experts recommend at least $100,000 per person in bodily injury coverage and $300,000.00 per accident and $50,000 property-damage coverage. A single-limit policy should have a minimum $300,000.

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Steel ended our interview with this warning note:

“If your agent tells you not to buy Medical Payments or Uninsured/Underinsured coverage, get a new agent! These coverages are essential and must be at substantial limits. Agents will often suggest ways to save money, such as ‘Well, you can have your own insurance so you don’t need to have auto-med pay.