As you can tell from our blog posts, we are very obsessed with the idea of personal risk management.  Most consumers think they do not make enough money or have enough assets for active risk management to play a role in their lives, but it CAN benefit everyone.  Here is an example of how a seemingly innocent action can lead to a catastrophic event for anyone!

Think back to when you have purchased insurance from other agents, was this question ever raised: Are your vehicles ever used to deliver such things as newspapers or food?  This question is not part of the typical set of questions asked to get a quote, but it certainly should be.  That is why we always ask that question...why is it so important?  Read on.

Many (not all) policies contain an exclusion under the automobile liability section that essentially states:

There is no coverage for Bodily Injury or property damage arising out of ownership, maintenance, or use of any vehicle or trailer while being used to carry persons or property for compensation or a fee, including, but not limited to, pickup or delivery of magazines, newspapers, food, or any other product.

Here is an example of where the potential catastrophic loss can occur:

Your teenage son just got a part-time job delivering pizzas, and he is using a vehicle owned by you to do so.  He causes an accident which results in a serious injury to the other driver.  You notify your insurance carrier of the claim and much to your dismay, your carrier writes you a letter denying coverage for the claim.  An uncovered claim of this magnitude could bankrupt a family.

Thankfully, there are coverage solutions for this issue.  You can either add endorsements for coverage or find a carrier that does not have this exclusion present in their policy in the first place.

Don't think risk management applies to everyone?  Hopefully this information changed your mind.

***This literature is descriptive only.  Actual coverage is subject to the policy as written.  This information may also vary by state.
Posted 11:43 AM  View Comments

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