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Business Auto Tips

A Practical Approach to Assessing Your Business Auto Risks
Running a business is risky, challenging and complex in today's environment. In addition to meeting the day-to-day demands of a business, business owners must think about liabilities that may affect their business. For example, many companies in Hawaii own or lease vehicles that are necessary to conduct business. Buying the right insurance policies and practicing good risk management techniques will protect your business from financial disaster and help preserve all your hard work.

If your company owns or leases vehicles, here is a checklist of things to consider:

• Know your limits. Make sure the limits on your Business Auto policy adequately protect your company. Keep in mind that if your company is underinsured, the company's assets may be on the line. You can get a lot more protection for just a little more money. In order to minimize financial risk, higher liability limits are always recommended.
• Know your policy. There are certain coverages that are mandatory like Bodily Injury, Property Damage and Personal Injury Protection. All auto policies written to cover vehicles in the State of Hawaii are also required to include Uninsured and Underinsured Motorists Coverage unless the insurance company has a signed written waiver indicating that you do not want those coverages. There are coverages that are optional like physical damage, wage loss benefits and death benefits just to name a few. There are also useful and affordable bells and whistles like hired and non-owned liability coverage if you rent a vehicle while doing business or if you have employees who use their own vehicles for work.
• Know how to save money. In order to rate your premium, insurance companies look at the number of miles you drive, who will be driving the vehicle, and your driving record and claims history. The liability limits and your comprehensive and collision deductibles are also factors in how much you are going to pay. There are ways to reduce your premium like increasing your deductibles or eliminating unnecessary coverages. For example, if your vehicle is more than seven or eight years old, physical damage coverage (comprehensive or collision coverage) may not be necessary.
• Know your drivers. When was the last time you did a routine check to see if your drivers have valid licenses? When was the last time you checked their driving records? Have you ever enrolled your drivers in a defensive training class? Keep in mind that your company is ultimately responsible for the actions of your drivers. If your driver causes an accident while in the course of work, the injured party can go after the individual and the company. Therefore, it is prudent to make sure that your drivers are screened and trained on a regular basis.
• Know your vehicles. When was the last time you did a routine inspection of your vehicles? Do you have a preventative maintenance program in place? Once again, you can be held liable for an accident involving a company vehicle. It is always wise to be pro-active and service your vehicles periodically.
• Know how to file a claim. Don't wait until an accident occurs before you rummage through your stack of papers looking for the number to call to report a claim. Know ahead of time who to call and how to file an accident report and be sure to educate your drivers as well. You should find out if your insurance company offers services like a toll-free number for claims reporting, extended hours, preferred body shops and repairs that are guaranteed.

Most of all, consult with an experienced insurance professional to help your company tailor its insurance program. These are basic tools to consider that will go a long way towards helping you sleep better and do what you do best: Running a business!

Matthew Liew, CPCU Hawaii Insurance Consultants, Ltd., a wholly owned subsidiary of AIG Hawaii. 35668