Delaware Business Insurance Update From CNC Insurance Associates, " Does Your Vehicle Titles Match Your Auto Policy". 2-12-17
One of the biggest gaps in coverage occurs when business owners have vehicles on their fleet policy that do not match the name insured on the policy. How does this happen ? Here is the scenario. A business owner buys a new vehicle for the company and they title the vehicle in their name personally. They decide they want to use it for personal and business. They call their broker to add it on the business policy but never mention that the vehicle is titled personally. A potential coverage gap can occur if the business auto policy is not endorsed , or set up , to cover vehicles with different titles. Other situations occur when titles are changed for various reasons during the year but the business owner forgets to tell their broker. The fix is fairly simple as there are many endorsements and change requests that can be added to a business auto policy to cover vehicles with different titles. The lesson here is to make sure you communicate with your insurance professional when...