Delaware Business Insurance Update from CNC Insurance Associates , "Conflicts Arise When Underwriting Standards are Tougher Than State Driving Laws" 1-29-17

Here is the scenario, your best driver in your company got a DUI on the weekend after leaving a restaurant and blowing a .08 at a checkpoint. This driver has had a excellent record up till this unfortunate situation. Now he has lost his license and cannot drive for your business for 6 months. Its a tough burden on your company but you make arrangements and keep the driver on as an employee waiting for the suspension to end. Finally the day arrives and he gets his license back. You notify your insurance company that you wish to add him back on as a driver in your fleet. The insurance company refuses to allow it and tells you he cannot be a covered driver for another 2 years!!
This scenario is happening more and more as insurance underwriting standards have become tougher than state driver licensing laws. This usually adds up to more headaches and higher premiums for business owners. The reason for this can be found in the courts. Insurance company claim payouts increase if the courts find that a business owner exhibited negligent entrustment by allowing a driver with a bad MVR to drive company vehicles. You can expect this to continue as commercial auto losses continue to increase nationwide and insurance companies are losing profits. As a business owner you can risk manage the situation by educating your drivers to realize their driving habits after work can affect their ability to drive at work. Until next time be careful out there and know your risks.


G. Kevin Nemith, President of CNC Insurance Associates & The Small Business Insurance Center
Serving DE, MD, NJ, PA & VA
www.cncinsurance.com
www.bizinsurancetv.org


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