Auto Insurance What is auto insurance? Auto insurance protects you against financial loss if you have an accident. It is a contract between you and the insurance company. You agree to pay the premium and the insurance company agrees to pay your losses as defined in your policy. Auto insurance provides property, liability and medical coverage: * Property coverage pays for damage to or theft of your car. * Liability coverage pays for your legal responsibility to others for bodily injury or property damage. * Medical coverage pays for the cost of treating injuries, rehabilitation and sometimes lost wages and funeral expenses. An auto insurance policy is comprised of six different kinds of coverage. Most states require you to buy some, but not all, of these coverages. If you're financing a car, your lender may also have requirements. Most auto policies are for six months or a year. Your insurance company should notify you by mail when it's time to renew the policy and to pay your premium. Why do you need auto insurance? It's really all about protecting yourself financially. * If you're in an accident or your car is stolen, it costs money, often a lot of money, to fix or replace it. * If you or any passengers are injured in an accident, medical costs can be extremely expensive. * If you or your car is responsible for damage or injury to others, you may be sued for much more than you're worth. * Not only is having insurance a prudent financial decision, many states require you to have at least some coverage. Questions to ask your agent Your Independent Agent is an advocate for finding auto insurance that meets your specific needs. Here are a few things to consider as you prepare for the discussion: * How much can you afford to pay if you get in an accident? (To keep premiums low you may want to have a higher deductible and be willing to pay more for repairs.) * What is the insurance company's level of service and ability to pay claims? * What discounts are available? (Ask about good driver, multiple policy and student discounts.) * What's the procedure for filing and settling a claim? (Ask who to call and what happens after you file a claim.) Business Insurance Commercial Auto As a business owner, you need the same kinds of insurance coverages for the car you use in your business as you do for a car used for personal travel -- liability, collision and comprehensive, medical payments (known as personal injury protection in some states) and coverage for uninsured motorists. In fact, many business people use the same vehicle for both business and pleasure. If the vehicle is owned by the business, make sure the name of the business appears on the policy as the "principal insured" rather than your name. This will avoid possible confusion in the event that you need to file a claim or a claim is filed against you. Whether you need to buy a business auto insurance policy will depend on the kind of driving you do. A good insurance agent will ask you many details about how you use vehicles in your business, who will be driving them and whether employees, if you have them, are likely to be driving their own cars for your business. While the major coverages are the same, a business auto policy differs from a personal auto policy in many technical respects. Ask your insurance agent to explain all the differences and options. General Liability If you have a personal umbrella liability policy, there's generally an exclusion for business-related liability. Make sure you have sufficient auto liability coverage. Unfortunately for every business owner, the chances of getting sued have dramatically increased in the last decade. General Liability insurance can prevent a legal suit from turning into a financial disaster by providing financial protection in case your business is ever sued or held legally responsible for some injury or damage. General Liability pays losses arising from real or alleged bodily injury, property damage, or personal injury on your business premises or arising from your operations. The Hartford's liability programs extend far beyond the provisions of typical policies, with broadened coverage and increased limits in over 30 areas. Broad Range of General Liability Protection * Bodily Injury, including the cost of care, the loss of services, and the restitution for any death that results from injury * Property Damage coverage for the physical damage to property of others or the loss of use of that property * Products-Completed Operations provides liability protection (damages and legal expenses up to your policys limit) if an injury ever resulted from something your company made or service your company provided * Products Liability is a more specialized product liability insurance that protects your company against lawsuits from product-related injury or accidents * Contractual Liability extends to any liability you may assume by entering into a variety of contracts * Other coverage includes: Reasonable Use of Force; Borrowed Equipment; Liquor Liability; Non-Owned Vehicles (such as aircraft and watercraft); Fire, Lightning or Explosion Damage; Water Damage Liability Protection; Legal Defense Costs; Medical Payments; Personal Injury; Advertising Injury; and specialized liability protection for specific business types Workers Compensation Workers compensation laws were created to ensure that employees who are injured on the job are provided with fixed monetary awards. This eliminates the need for litigation and creates an easier process for the employee. It also helps control the financial risks for employers since many states limit the amount an injured employee can recover from an employer. Workers Compensation Insurance is designed to help companies pay these benefits. As a protection for employees, most states require that employers carry some form of Workers Compensation Insurance. Workers Compensation Insurance is not health insurance. Workers Compensation is designed specifically for injuries sustained on the job. In most states, if you have employees, you are required to carry Workers Compensation coverage. Even in non-mandatory states, it can be a very good idea, particularly if you have many employees, or if they are engaged in hazardous activities. Do I need workers compensation insurance? Employers have a legal responsibility to their employees to make the workplace safe.