Personal Auto vs. Commercial Auto when Snow Plowing

November 5, 2014 at 11:09 AM | Posted in Auto, Insurance Policy | Leave a comment
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The first snowfall of the year has arrived! If you plow during the winter months with your personal vehicle, it is time to get the plowing gear ready. The following information, regarding your Personal Auto policy, may help you determine when you should consider obtaining a Commercial Auto policy:

Under a personal auto policy:

  • If you are plowing for a fee, your personal auto policy should be endorsed to Business Use to avoid issues at the time of a claim due to business use exclusions. The cost to add this endorsement is relatively small.
  • You should provide a receipt or documentation stating the value of the plow and hitching equipment so the policy can include it in the Physical Damage coverage. Otherwise, the cost of the plowing equipment would not be included in a claim should you report a loss.
  • A personal auto policy does NOT offer any Completed Operations coverage. This coverage responds in cases where someone files a claim from an incident (i.e. slip and fall injuries) after hired snow removal is completed.

When you need a commercial auto policy:

  • When you are required to carry Combined Single Limits.
  • When you are required to list an Additional Named Insured on the policy.
  • When you are required to produce a Federal Motor Carrier Service Association Filing.
  • When you need Completed Operations coverage. We suggest that if you are plowing for others you always carry Completed Operations coverage.

Call us at 888.850.9400 ~ we can help you protect your business investment to the fullest extent possible.


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