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One type of coverage in a commercial auto insurance policy will cover bodily injury claims. If an employee using your company vehicle causes an accident that injures others, bodily injury liability insurance will pay for costs related to those injuries. This might include hospital and medical bills, rehabilitation costs, long-term nursing care, funeral expenses, lost wages, pain and suffering. This policy may also cover your company's legal defense if you are sued as a result of your employee's involvement in the accident. In most states, bodily injury liability insurance is required by law. When you work with the commercial auto insurance company on the details of your policy, you will select limits that will determine the amount the company will pay for a given claim. You may choose to have split limits or a combined single limit. Split limits - This kind of limit indicates the maximum payment the company will pay per person that is injured, and the maximum payment for all injuries in the accident. For example, if your policy lists limits of $20,000/$50,000, this means the company would pay up to $20,000 per person injured, up to a maximum total of $50,000 for all injuries in a single claim. Combined single limit (CSL) - In this case, there is no specific limit per person. A maximum total is designated that is paid for all injuries and property damage that result from a single accident. For example, your policy indicates that the insurance company will pay up to $1 million for all injury and property damage related bills resulting from an accident your employee causes. Consider the following comparison of how coverage might apply in the case of an accident where your employee rear-ends another vehicle, and your split coverage amounts are $20,000/$50,000: Suppose the costs for the accident were $700 for the other driver's medical costs and a $15,000 hospital bill for a passenger in the other car. Since each person's medical costs were less than the $20,000 per person and the total accident was less than $50,000, all the costs would be covered by the insurance company. If the costs for the accident were more significant, such as $30,000 for the other driver and $20,000 for the passenger, the total amount would be covered, but the individual amount for the other driver would be greater than the individual limit. Therefore, your policy would pay the maximum amount of $20,000 for the driver and the full $20,000 for the passenger, but your company would be responsible for the remainder of the driver individual amount above the maximum. Some important considerations with bodily injury liability: Most companies will require that all of your business vehicles be listed on the policy, with the same limits for each vehicle. Make sure your carrier is well informed about local laws regarding bodily injury liability requirements, as some states set minimum limits. Some policies have a radius restriction, based on the operating location of the vehicle. Check with your carrier to make sure any limits fit within your business location and service area. Understand what coverage your business has. There are exceptions to all types of policies, so make sure you know what may not be covered, such as intentional acts. Bodily injury liability considerations are just one aspect of a commercial auto insurance policy. Make sure you work with an experienced carrier who will take the time to understand your business needs and develop a policy that's right for you. When looking for commercial auto insurance, Texas residents go to http://www.http://www.americantruckinsurance.com/texas-coverage.
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