COMMERCIAL

Commercial property insurance helps businesses pay to repair or replace property that was damaged by a fire, storm, or other event covered by the policy. It also pays to replace stolen or lost property.

Some of the commercial policies are:

Commercial auto
Businessowners policy (BOP)

Commercial Auto Coverage

Commercial auto liability insurance helps protect you from costs associated with injuries or property damage suffered by others in an accident caused by you or your employee in your insured commercial vehicle.

This coverage is broken into two different coverages.

Bodily injury liability coverage – pays for bodily injury or death resulting from an accident for which you are at fault and in most cases provides you with a legal defense.

Bodily injury coverage is often broken up into two limits:

Limit per person (when one person is hurt).
Limit per accident (when multiple people are hurt).

Property damage liability coverage – provides you with protection if your vehicle accidently damages another person’s property and in most cases provides you with a legal defense. This insurance can pay to repair or replace properties such as:

Cars.
Fences.
Utility poles.
Flag poles.
Mail boxes.
Houses.
Garages.
Pets.

As a truck driver, your primary liability insurance must be sufficient to cover any incurred liability. For instance, if you have a liability limit of $750,000, in the event of a loss, the insurance company will cover up to $750,000 of damage or injury to the other person and their vehicle if it is found that you were at fault.

Other Commercial Auto coverages include the following:

Combined single limit (CSL) – Liability policies typically offer separate limits that apply to bodily injury claims for property damage. A combined single limits policy has the same dollar amount of coverage per covered occurrence whether bodily injury or property damage, one person or several.
Medical payments, no-fault or personal injury coverage – usually pays for the medical expenses of the driver and passengers in your vehicle incurred as a result of a covered accident regardless of fault.
Uninsured motorist coverage – pays for your injuries and, in some circumstances, certain property damage caused by an uninsured or a hit-and-run driver. In some cases, underinsured motorist coverage is also included. This is for cases in which the at-fault driver has insufficient insurance.
Comprehensive physical damage coverage – pays for damage to your vehicle from theft, vandalism, flood, fire, and other covered perils.
Collision coverage – pays for damage to your vehicle when it hits or is hit by another object.
Motor Truck Coverage– This insurance provides protection for the cargo you are transporting against fire, collision, damage etc. If you are in the business of transporting the property of others, cargo insurance is essential protection against unforeseen events.

At Owners Insurance Agency LLC, we understand the struggle that each small-business trucker or owner-operator face trying to get the right coverage to meet the ever changing regulations. We take the worry out of insurance so that you can concentrate in running your business.

Factors that affect Commercial Auto Premium

Insurance companies use a process called underwriting to determine how likely your business is to file a claim. The greater the likelihood of a claim, the higher the premium will be. If an insurance company determines that your business is at a high risk for a loss, it may decline to issue you a policy.

The following are some factors that play critical role in determining your premium.

The driving record of the driver(s)- Excellent drivers drive the premium down whereas risky drives will increase your coverage cost.
The value of the vehicle- Your insurance company will evaluate the worth of your vehicles the amount it would cost to repair them after an accident. The higher the cost, the more that you can expect to pay for the premium. If you have a new vehicle that’s worth a lot of money, then you should expect your commercial auto insurance premium to go down every year as the vehicle depreciates in value.
Multi-line discount- If you have more than one vehicle, you can insure each vehicle separately. Alternatively, you can insure them all with a consolidated policy. Insuring all vehicles under one policy is less expensive.
Location- The more time that the vehicles spend on the road, the more you’re going to pay in insurance premiums. Insurance companies put a price tag on risk. It’s a simple, statistical fact that if your vehicles are driven 200 miles a day as opposed to 100 miles a day, then it’s more likely that they will be involved in an accident.

Businessowners’ Policy Insurance (BOP)

A businessowners’ policy, also known as a BOP, combines property insurance, liability insurance and more into one convenient package. This coverage includes the following

Property insurance for buildings and contents owned by the company — there are two different forms, standard and special, which provides more comprehensive coverage.
Business interruption insurance, which covers the loss of income resulting from a fire or other catastrophe that disrupts the operation of the business. It can also include the extra expense of operating out of a temporary location.
Liability protection, which covers your company’s legal responsibility for the harm it may cause to others. This harm is a result of things that you and your employees do or fail to do in your business operations that may cause bodily injury or property damage due to defective products, faulty installations and errors in services provided.

Fire risk is usually the primary factor that determines a business’s commercial property rates. Insurance companies do inspections as part of the underwriting process. Fire inspectors use a standard rating system and weigh five factors to determine a structure’s fire rating. The five factors are:

Construction materials. Buildings made of potentially combustible materials will have higher premiums, while those made of fire-resistant materials could earn a discount. Additions to an existing structure might affect a fire rating, so it’s a good idea to talk to your agent or insurance company before remodeling. Internal structural elements can also affect a fire rating. Using wood partitions, floors, and stairways in an otherwise fire-resistant building will likely nullify any rate reduction. Fire-resistant interior walls, floors, and doors can help maintain a good fire rating.
Location. Buildings in cities or towns with good fire protection — as assessed by the Texas Commission on Fire Protection — typically cost less to insure than buildings outside a city or in areas with limited fire protection.
Occupancy. A building’s use also affects its fire rating. An office building will likely rate better than a restaurant or auto repair shop. In a building with multiple tenants, one hazardous occupant will negatively affect the fire rating of the entire building. If your business is in a building with a more hazardous tenant, your premiums will be higher.
Fire protection measures. Automatic sprinklers can reduce a building’s fire rating by as much as 50 percent. Buildings with fire extinguishers and automatic alarms and those within 500 feet of a fire hydrant will usually have lower ratings.
Exposure. Nearby hazards increase a building’s fire risk. Proximity to external fire hazards, such as a lumberyard or oil storage tank, will affect a fire rating even more. Other things that could affect your fire risk include cluttered buildings and grounds, heavy mechanical or electrical equipment, or volatile materials stored on site.

The above Texas Commercial insurance descriptions are meant to supplement, but not replace, the coverage detailed in your individual policy. Please refer to your actual policy contract language for coverage details.