Sure businesses have general liability insurance to cover any incidents that may occur like slips and falls or any other occurrence that injures people or causes property damage, but many businesses have their vehicles on the road.  The employees drive those vehicles to clients’ homes or to deliver products or services.  An insurance policy is needed to cover any losses that may occur due to those vehicles.  This is where the Auto Related Business Umbrella Liability insurance policy comes in to save the day.

Any business that uses vehicles to perform its daily functions can benefit from the Auto Related Business Umbrella Liability insurance policy.  One may know from personal auto insurance policies that losses on the road can come from out of nowhere and costs can add up very quickly.  In a similar fashion, the Auto Related Business Umbrella Liability insurance policy helps to guard against those losses.

Think about it, a vehicle is a 1500 pound chunk of metal hurtling down the road sometimes in excess of 75 miles per hour, sometimes straight toward oncoming traffic.

The opportunity for catastrophic damage is huge.  These losses can add up to and exceed the business value in a hurry.  These losses can come from bodily injury, property damage, or even both at the same time.  All it takes is one accident and one lawsuit to financially cripple a business or business official.  With several vehicles and several employees, the opportunities for occurrence increase.  Insurance on those vehicles is actually required by law in just about any state.  Businesses in particular don’t want to have vehicles on the road with no insurance.  

These accidents don’t even necessarily need to happen on the road.  Suppose an employee in a company vehicle backs up into a customer’s vehicle in the parking lot.  Further suppose that customer is in his or her vehicle and claims to have an injured neck or back.  An incident like this can occur anywhere, it doesn’t just have to be in the parking lot.  It could occur at the gas station, the store, a personal driveway, anywhere.

Even scarier, a person doesn’t even have to be present in the vehicle for a loss to occur.  Suppose a vehicle slips out of gear (or out of Park, whatever the case may be) and rolls into another vehicle, causing damage.  Worse yet, suppose that same vehicle rolls into a person walking or standing in the parking lot.  

As with any insurance policy, the Auto Related Business Umbrella Liability insurance policy can be tricky to shop for.  One must decide what coverage level is appropriate, what premium is justified, and what coverages are needed.  This is an issue that the licensed insurance agent in the proposed insured’s state can help to navigate through all of the nuances associated with this type of policy.   Call an agent today before it’s too late.  

For a deeper understanding of how this type of policy supports risk management strategies for businesses with fleets, check out our Auto Related Business Umbrella Liability Insurance page. Employers and contractors may also find helpful information on Employer Liability for Auto Related Business, including liability exposures stemming from employee operation of company vehicles.

Frequently Asked Questions

What is Auto Related Business Umbrella Liability insurance?

This type of policy provides extra liability protection for businesses that use vehicles as part of their operations. It supplements commercial auto insurance and helps cover claims that exceed standard limits.

Who should consider this coverage?

Operators, contractors, delivery businesses, and service providers who have employees driving company vehicles should consider this policy to better manage transportation risks.

Does this policy cover personal use of company vehicles?

Coverage typically applies to business use, but specifics may vary by carrier. It's important to clarify vehicle use with your insurance agent.

Is this the same as commercial auto insurance?

No. Commercial auto insurance covers direct vehicle liability. Umbrella liability insurance adds an extra layer of protection above the limits of your primary auto or general liability policies.

What incidents are commonly covered?

Covered incidents may include bodily injury, property damage, or legal defense costs resulting from vehicle-related accidents that exceed base policy limits.

Still have questions? Talk to a local insurance expert.