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Workers Compensation Ghost Policies

If you are a contractor that does not have any employees and you have a contract that requires you to have a workers compensation policy, then you have likely heard of a ghost policy. What does this term mean though? A ghost policy is an industry term that typically refers to a workers compensation policy that is issued in the residual market through the North Carolina Rate Bureau. The term ghost policy is used as a reference to a workers compensation policy that has no employees. With an increasing number of contractors requiring their independent subcontractors to have a worker compensation policy, there needed to be a policy that these subs could get even if they didn’t have employees themselves. These policies were created to give these independent subs a way to get the needed certificate of insurance.

Why do contractors need you to have a workers compensation policy if you have no employees?

The reason you are being asked to have this policy is because it transfers the liability to you if you are hurt while you are on a job. If you have your own workers compensation policy in place, then it would be your policy to pay out if you are hurt. The main reason you are being asked to have this policy though is because it keeps the general contractor’s workers comp rate down. If they pay you as a 1099 independent sub contractor then your pay from them will not figured into their audited workers comp premium.

What is vital to know with ghost policies?

  1. Do your audit. When asked for information from your workers compensation company it is very important that you respond in a timely manner. The insurance company can increase your rate, withhold a refund, or mark you as non-compliant which hinders your ability to get a policy in the future.

  2. Make sure to 1099 any subcontractors under you AND make sure you get a certificate of insurance for them in order to keep your overall workers compensation rate down. If you have W-2 employees then their pay will count towards your workers comp premium. If you don’t get a certificate of insurance for your independent 1099 subs then their pay will also count towards your workers compensation premiums.

  3. The workers compensation policy will not cover you and your injuries as the owner if you don’t elect coverage for yourself. In an effort to keep the rate down, most owners exclude coverage for themselves. You must remember this if you are ever hurt though as there will be no coverage at all for your injuries if you reject coverage for yourself.

  4. The NC Rate Bureau will assign your policy to a specific company. If you have had a policy in the past then it will likely be the same carrier since they have your policy history.

  5. Workers comp policies are always estimated premiums. We never know what our true payroll will be unless we have 0 employees. It is for this reason that your policy premium is estimated. The true cost of the premium will be settled after the audit.

Why are workers compensation policies so expensive?

These premiums can be expensive depending on what your class code is. Typically exposures such as office work are very inexpensive because the risk value is so low. This is not true for classifications such as carpentry and roofing risks. The reason for the hefty premiums is due to the risk level and the fact that it will not only payout for their medical bills if they are injured, but also to their loss of time at work. When there is a claim, these total payouts can be very significant.

What kind of items are needed for an audit?

Below are a list of some of the more common items that are requested when you are completing a workers compensation audit. It is important that you keep accurate records leading up to the audit.

  • 941 payroll reports

  • Schedule C of your income tax return for the business

  • Ledgers and journals for the business

  • Business check books

  • List of independent 1099 subcontractors

  • Bank statements

North Carolina Rate Bureau residual policies, known as ghost polices, can be a very important part of your business requirements in getting work from other contractors. It is important that you take them seriously and that you arm yourself with all of the information needed to ensure that you don’t see extremely high rates. You also want to protect yourself as an employer from very expensive lawsuits. You should have a lengthy discussion with your agent to see if this policy type is something that will be beneficial to you.

Independent Insurance Agents

Independent insurance agencies represent multiple companies and sell multiple products. By being able to present various options for their clients, they are usually able to save their clients money on policies such as auto, home, business, motorcycle, and boat insurance.

What is a captive agency?

A captive insurance agency is typically an agency that sells almost exclusively through one company. Think State Farm, Nationwide, Geico, or Allstate. These companies can have very competitive rates provided you meet their criteria for their target market.

What are some reasons to go through an independent insurance agency?

More Insurance Companies to Shop

By representing numerous companies, they can typically quote them all and give you better pricing. Most independent insurance agents have some form of comparative rating software that allows them to shop various insurance carriers at the same time without having to quote each one individually. This saves time and money during the shopping process. The law of numbers proves that if you get quotes through 12 different insurance companies then you will likely find a better rate with one of the 12 rather than just calling 1 company.

What are some of the companies that independent agencies sell through?

People ask a lot what companies we write through since we market our individual agency name.

Some of the more common ones that we write through are shown below. These companies are commonly used in other independent agencies as well

  • Progressive
  • National General (GMAC)
  • The Hartford
  • Travelers
  • Safeco
  • Liberty Mutual
  • Universal Insurance
  • Foremost
  • Met Life

Less Stringent Underwriting Guidelines

Whereas captive insurance companies can be very particular about their target market, going through an independent insurance agent gives you various companies and policy options. Some examples of situations where your rates might be negatively impacted by certain captive agencies are shown below.

  • Poor credit
  • Tickets or accidents
  • A suspended drivers license in the last 5 years
  • A recent home claim
  • Inexperienced operator
  • No prior insurance
  • Insurance on older home
  • Business insurance on certain business types

You Need an Expert

Insurance is complicated and you need an expert to help explain coverages and give advice. Just like you would hire a medical doctor for health problems or an attorney for legal concerns, you should put your trust in an insurance professional to help explain terms you may not understand or be familiar with.

One Stop Shop

Your typical independent insurance agency can offer you most or all of your insurance needs under one roof. This way when you have questions on your various policies you won’t have to call around to multiple agencies to get answers. Your independent agent can shop your rates for all of your insurance policies giving you several options.

An independent insurance agency is a valuable source for all of your insurance needs. Too often people feel safe by going with one of the 4-6 insurance companies that you see advertisements for almost daily. Those ads are expensive and that typically means you could be paying for them to find their future clients. I currently have all of my personal and business policies through 7 different insurance companies and this saves me the more money on my premiums versus bundling it with one company that may charge me a lot more on certain policies. If you are worried about your bottom line than you should consider getting a quote through a local independent agent.

We work directly with a lot of captive insurance agencies and when we feel like our clients are better served by placing their policy or policies with one of those companies, than we refer them. Many captive companies return the favor and refer clients to us when they may not be able to offer them the most competitive rates.

It is up to you to make that choice because you cannot rely on others to provide you what is best for you. I recommend at least putting an independent insurance agency on your list the next time you are shopping for insurance.

Insurance Discounts

There are many types of discounts that can be offered on various insurance policies. We will discuss some of them and the things you may be able to do to qualify in further lowering your overall rates. Most agents will ask you questions to see if these discounts apply.

Not all insurance companies will offer the same discounts. NC does regulate discounts that can be applied in some situations due to insurance rate regulations. Over the years the number of discounts allowed has significantly increased.  You should take advantage of each and every one that applies as it will not only effect your overall premium in the current term you are in, but in future terms as well.

Homeowners discount- This is a discount given on your policy for simply being a homeowner.

Incident-free discount- This one provides a discount for not having any driving incidents at all, including non-chargeable violations and not-at-fault accidents. It is true these days that a lot of companies charge a higher rate even if you were hit from behind due to this discount being removed.

Proof of prior insurance- If you have had prior insurance for at least 6 months you will likely pay less with most companies. There are higher discounts for being with your prior carrier for 3 or 5 years.

Multiple policies discount- This discount can be applied to all of your insurance policies for carrying your different policies with the same insurance company or insurance agency.

Automatic payment deduction discount- Most carriers these days will give you a relatively large discount if your policy is deducted automatically from your checking account.

Paid in full discount- This discount is even higher in most cases and applies to your overall premium if you pay the policy in full. In addition, you will avoid payment service charges each month on your insurance.

Security system discount- This applies to your home insurance policy and will provide a credit to your premium if you can provide an alarm certificate from your security company showing the home alarm is monitored by a central station alarm.

Claim free discount- Applies when you have not had any claims for a specified period of time, usually 3 or 5 years.

Paperless discount- Most companies that are set-up to deliver bills and other documents through e-mail instead of through the US Post Office will provide a discount for choosing this method of delivery.

Good student discount- This discount is provided by insurance companies through various criteria giving a reduction in your premium for drivers that are good students.

Air bag and various safety equipment discounts- Auto policies will provide discounts for certain safety features on your automobile. These are usually automatically generated once your VIN is provided.

Claim free renewal discount- Certain companies will give a discount for each renewal that you are claim-free and in some cases they may offer a diminshing deductible.

Rider association discount- Motorcycle policies will often give a credit if you belong to a rider association.

Safety course discount- Certain safety courses that you have completed will lower your rates such as a motorcycle safety course.

Pleasure use discount- If you use your vehicle for pleasure use then you will likely get a reduced rate.

New home discount- The age of your home can play a factor in your overall rate. Newer homes receive better rates in most cases.

Good credit discount- NC does allow reduced rates depending on your overall credit score. The credit score that is run is a soft hit on your credit and will usually not effect your credit score in any way. If you have excellent credit then you will see a large decrease in your overall rate and this is typically one of the largest discounts of the ones we have discussed.

These are just some of the more common discounts that can be applied on all types of insurance policies. If you stack these discounts then it can make a significant difference in your overall rate. It is good practice to ask what discounts can be applied on each of your insurance policies when you are getting an insurance quote.

Commercial Auto Insurance Coverage Requirements

If you are looking for a commercial auto quote, one of the first items that will need to be determined is the limit of liability that you will need to have.

In certain businesses in NC, you are required to have commercial auto coverage and on those policies, there are certain minimum limits of liability that are required. To register a personal auto, you are required to have certain limits of liability on your insurance policy. These limits are $30,000 bodily injury each person, $60,000 bodily injury each accident, and $25,000 property damage each accident. This is commonly referred to as 30/60/25.

These minimum limits are quite low and it doesn’t take a large accident to go over these minimum limit requirements. I strongly urge insureds to choose higher limits than the minimum required. Every carrier offers higher limits and the change in premium is relatively low compared to the coverages offered. Just remember, where your limits of liability stop, you are responsible for the remainder. You can, and in most cases, will be sued by the other party if your limits are not sufficient to the actual damage done.

The NC Reinsurance Facility (NCRF) has other minimum requirements for certain businesses. NCRF

Taxi Cabs: Cabs carry the same minimum 30/60/25 requirements as do personal autos.

Uber: Uber drivers are currently under the same restrictions as the cab companies with 30/60/25 requirements. Uber, as a corporation, provides a $1,000,000 limit of liability for their drivers while passengers are being transported.

Other Livery: Livery means simply, the transportation of passengers. The NCRF requirement for livery businesses with vehicles that can transport 15 or more passengers have a combined single limit (CSL) of $750,000.

Charter and Sightseeng Buses: The NCRF limit for buses is $1,500,000 due to the weight of the vehicle.

Limousines and Airport Shuttles: Passenger capacities up to 15 persons will require a $1,500,000 limit of liability for limousines and airport shuttles. This limit is increased to $5,000,000 if the passenger capacity is over 15.

Weighted Vehicles: Vehicles over certain weights that are not used to transport passengers have the following minimum required coverages: The gross vehicle weight of the vehicle and trailer combined has a minimum requirement of $750,000 if said weight is over 26,000 pounds.

The Federal Motor Carrier Safety Administration (FMCSA) has their own requirements for certain vehicles. Federal guidelines take over on certain risks. If vehicles cross state lines, then they are held to certain minimum standards.  FMCSA

 

Tractor Trailers: Unless transporting hazardous material, the minimum requirements for tractor trailers crossing state lines is $750,000.

Depending on your business and the vehicle you are driving, you will be required to have certain limits of liability either by NCRF guidelines or FMCSA guidelines. Your agent should know what limit are required if you are able to give the details of the vehicle, business type, gross vehicle weight, and radius you are driving. Keep in mind that higher limits are often available and you may want higher limits than the minimum requirements to protect you.

MOTORCYCLE INSURANCE

If you are purchasing a motorcycle then you will likely be looking into purchasing a motorcycle insurance policy as well.

Spring is here which means you may have the fever to go out and explore the open road. We will discuss some important factors in motorcycle insurance before you buy one.  There are several things that you should be aware of when you take out one of these policies.  These policies are very similar to your auto insurance policy and cover many of the same things but there are some differences.

Motorcycle policies are written on annual basis in NC whereas auto policies can be written 6 months at a time, a full year, or both depending on the company. The reason for this is because the state of NC requires you to have liability insurance on a bike just as you are required to have one on an auto.

Many people might forget to renew their motorcycle policy if it is off-season and you aren’t riding at the time. You still must keep liability insurance on the bike unless you turn in your tags. If you are financing the bike then the bank will require you to keep comprehensive and collision coverage on the bike as well until you pay off the loan regardless of the season. In NC and SC, our seasons are longer anyways and the weather can be warm enough in any month to warrant a ride

Liability Limits

The liability limits you choose are required to be at a minimum 30/60/25 limits as required by NC law.

These split limits stand for $30,000 bodily injury per person, $60,000 bodily injury total for each accident and $25,000 property damage for each accident.

Uninsured Motorist Coverage or Under-insured Motorist Coverage

We typically recommend higher liability limits on motorcycle policies not because you are likely to do more damage while on your bike versus a car, but due to the un/underinsured motorist coverage also being higher. We are more focused here on bodily injury claims than property damage. Unfortunately when you have an accident on your bike and have bodily injury, the expenses are oftentimes very high.

If you carry higher limits of liability then you can also carry the higher matching uninsured and under-insured motorist coverage. For instance if your limits are $100,000 bodily injury per person and you carry matching uninsured and under-insured motorist coverage up to these limits then you are protecting yourself much more. If you are hit by an uninsured motorist then you will be covered up to your $100,000 limit for your injuries. If that same driver hits you and he has only the minimum $30,000 bodily injury limit required by state laws, then you will still be better covered. Where that $30,000 limit stops, your under-insured motorist coverage kicks in and pays up to your $100,000 under-insured bodily injury limit.

Comprehensive and Collision

This is the same coverage as your auto and covers damage to your bike for accidents, weather, theft, etc. Even if you have your bike paid off you should seriously consider comprehensive coverage in addition to your liability coverage at the very least. Sport bikes especially have a very high theft rate and would be covered under these comprehensive claims.

Medical Payments

It is probably important to carry higher limits for medical payments on your cycle policy which will cover you and any passengers on your bike if you are hurt. This is true for obvious reasons.

Additional Equipment

Many companies allow for coverage for additional after-market equipment and safety equipment. A lot of them give you automatic coverage up to $3,000 under their standard premium. Higher limits are typically allowed to be purchased for an increased premium amount. It is important to keep accurate records and receipts of this additional equipment so you can present it to the company in the settlement of your claim.

Cost of Motorcyle Insurance

We write through many different insurance companies that specialize in motorcycle insurance. The cost of insurance can vary greatly from company to company. It is important that you shop out this insurance to make sure you are getting the best deal. We do this for our customers and we are able to save them a great deal by shopping it out.

Typically insurance on cruisers are cheaper than those of sport bikes due to the loss likelihood so sport bike riders should be even more pro-active when comparison rate shopping.

There are many discounts that can be applied to help lower your rate. A few examples are shown below. Be sure to ask about these when shopping.

*Motorcycle Safety Training

*Prior motorcycle coverage

*Motorcycle endorsement on your drivers license

*Rider Association

*Points not being charged if charged already on your existing auto insurance policy

*Bundle discount

Please contact us at 704-494-9495 if we can answer any questions as to proper coverage on motorcycle insurance. Due to the risk level, this is a very important topic and we don’t want anyone to wait until it is too late before educating themselves.

The Insurance Bundle Myth

One of the biggest myths in shopping for insurance is the insurance bundle discount.

A lot of insurance companies use this to entice customers to put all of their insurance policies with them. It is true that a discount is being offered on each policy but the overall rate of each policy might be higher than if you put each policy with a separate company.

There are very few companies that will be competitive across the board on insurance policies for auto, home, life, health, boat, motorcycle and business insurance.

There is exactly zero companies that will offer the best rate for every customer on all of these insurance policies. It is pretty typical for an insurance company to be competitive on either auto or home insurance policies. Whichever policy they carry a higher premium on would be made up by the competitive rate on the other policy.

Customers should look at all of their policies separately to make sure that they are, in fact, getting the best overall rate on all policy types. This is the value of an independent insurance agency. An independent insurance agent can shop out all of your policies with various companies to determine the best company for you. You would still have one agent for all of your policies and only one person to call to ask any questions you may have, but you would allow them to make sure you are getting the best overall rates.

A lot of times your independent agent can offer you discounts on each policy for carrying multiple policies with the agency which is equivalent to a bundle discount but you would not be forced to have all of your policies with the exact same insurance company.

As I write this I currently have my auto insurance with National General(GMAC), my home insurance with Bankers Insurance Group, my business general liability and workers compensation policies with The Hartford, my life insurance with AIG, and my health insurance with Blue Cross Blue Shield.

The overall rate along with claims satisfaction and ease of doing business should be the most important factors in deciding where to put your insurance policies.

It is also worth mentioning that you should talk with your agent regularly to make sure that your policies are still with the best companies for you. Insurance companies change rates quite often and what may have been the best for you a couple of years ago may not be the best option for you now.

Don’t get roped into words and phrases that advertisers use to make you feel safe and that you are getting the best value. Shop for yourself and see if they are truly the best options for you. Call your independent agent today and have them work for you.

Builders Risk and Vacant Home Insurance

Certain circumstances may warrant you having a different policy for your home than a standard home insurance policy. We will focus on 2 separate kinds of insurance policies; builders risk policies and vacant home insurance policies. We will discuss the differences of each so you can make an educated decision on what is best for you and your needs.

Builders Risk Insurance:

This is a policy that is either purchased by the owner or the builder on a home that is being built from the ground up. A builders risk policy will cover the home while it is under construction. Coverage is also extended to the materials and equipment that are being used to build the home.

Once the home is completed, the policy should be canceled and replaced by either a vacant home policy or a standard home insurance policy. Claims settlement payouts on a builders risk are based on the amount of construction that has been completed. This means that if you are insuring the home at $200,000 and home is 50% complete then they will payout $100,000. This is a very simplified explanation and a true value of the amount completed would be determined on the overall payout.

Vacant Home Insurance:

This is a policy that covers vacant homes that are unoccupied either because it is listed for sale, listed for rent or lease, under construction, or the home is currently not inhabited for other reasons.

It is very important that once a home is vacated for any of the said reasons, that you notify your insurance agent immediately to avoid any possibility of a denial of future claims.

If your home is unoccupied and a claim is filed under a standard owner-occupied policy, the claim can be fully denied or payouts can be significantly reduced. Most home policies request to be notified within 30-60 days from the home being vacated.

2 Types of Vacant Home Insurance Policies

  1. Vacant with Renovations

    This type of policy will cover renovations being done to the home as long as the existing studs and foundation are being used. Some policies require there to be a distinction if there are renovations being done or not so they can rate the policy accordingly. If you are building completely from the ground up, including new studs or foundation, you should purchase a true builders risk policy.

  2. Vacant without Renovations

    This policy is what you should choose if the home is not undergoing any renovations or construction and is either up for sale or rent. These policies are typically cheaper than builders risk policies or vacant policies with renovations since the risk level is typically lower.

If you have questions regarding what policy is right for you, please contact your agent before a loss occurs. Denials of claims or reductions in the total payout can be detrimental due to the large investment value of your home. Our agents are always available for any questions you may have for home insurance policies in NC or SC regarding the above topics. Please contact us at 704-494-9495 anytime.

ONLINE INSURANCE QUOTES

Getting insurance quotes online has never been easier. We are in the technology age where our technology is advancing more quickly than anytime in history. Just think how much has changed in the last 10 years in how we shop, listen to music, watch movies, and access the internet. With all of these advancements in technology, the way we shop for insurance was bound to change as well. We will discuss some of the benefits of shopping for insurance along with some of the hazards as well.

Our website allows users to shop for insurance in 3 ways.

  1. Call a licensed agent.
  2. Get an instant online quote that you can bind yourself.
  3. Input your info into an online form that will be transferred to a licensed agent to shop

Every individual is different with different needs so shopping for insurance should fit those differences as well allowing the user to be satisfied with the results.

Some of the positives in shopping for insurance online are:

  1. Quotes are timely and in many cases instant
  2. Ease of use
  3. You can do it directly on your computer or phone without having to talk with someone
  4. You don’t have to deal with individual sales people
  5. Instant issue of your policy

Some of the negatives in shopping for insurance online are:

  1. You may not get the coverage you need
  2. You can’t ask questions
  3. Certain kinds of insurance aren’t available to be quoted or issued online
  4. You can’t always get quotes from multiple companies like you can when dealing with an independent agent

Many of the online quoting companies are very user-friendly, including our own. However, unless you are a licensed agent you may not understand what coverages will fit your needs. Insurance is extremely important and without the proper coverage, the results can be detrimental.

I still feel that shopping for insurance of all kinds including auto insurance, home insurance, commercial insurance, etc is best when issued and advised by insurance professionals so that you will be adequately covered in the event of a loss. It is for this reason that home insurance policies and commercial policies among others cannot be quoted and especially issued by customers themselves. We offer instant online quotes and the ability to issue your own policy to meet the increasing needs of customers but please be careful with this technology.

When in doubt please call us to ask any coverage questions or advice on what policy would be best for you. Even if you have already issued your own policy it can’t hurt to have a licensed insurance agent look at your policy and make any recommendations for you.

CERTIFICATE OF INSURANCE (COI)

What is a certificate of insurance?
A certificate of insurance is a document completed by an insurance company or insurance agency that lists insurance policy information including company name, policy number, coverage info, and term dates for an insured’s policy or policies.  It is commonly used for commercial policies to show proof of coverage.
Certificate Holder
The certificate holder is shown in the bottom left hand corner of the insurance certificate and reflects the name of the organization or individual that is requesting proof of insurance for the insured.  The certificate holder info requires the holder name and address to be listed.
Additional Insured
An additional insured is the certificate holder that also requests to be listed on the policy as an additional insured and further requests to be notified by the insurance carrier if the policy is to be canceled.  An additional insured has additional rights on the policy that a certificate holder does not have.  There can be an additional fee to list additional insureds on your policy with many carriers.  A box can be checked on each policy to signify that the certificate holder is listed as additional insured.
Sample Certificate
 
A sample certificate is a document that a contractor will send over that shows minimum requirements that a subcontractor must have in order to secure a contract.  The most common policy types, in order, that a contractor will require are general liability, workers compensation or employers liability, automobile liability, cargo liability (for truckers), and umbrella or excess liability.
What are the standard insurance policy types shown on a certificate of insurance?
A standard Acord certificate of insurance has space for some of the most common types of commercial insurance policies.  These common types are shown below in order of how they are listed on the insurance certificate from top to bottom.
General Liability
Automobile Liability
Umbrella or Excess Liability
Workers Compensation or Employers’ Liability
Blank Space/Other
Description of Operations Section
 
This section of the insurance certificate will list other pertinent information of the coverage being listed.  This section can make reference to an additional insured being listed on a specific policy, provide vehicle info on a scheduled auto policy, list information for other policy types, include other endorsements listed on the policy, etc.
Other Common Endorsements 
Some other common endorsement types that can be listed on commercial policies and indicated on certificates of insurance are shown below.
Additional Insured
Waiver of Subrogation
Primary and Non-contributory wording
Any Auto 
Hired Auto
Non-owned Auto
Aggregate Limits Apply Per Project
Aggregate Limits Apply Per Location
Certificates of insurance are a very common request in securing a contract for your business.  These contracts require certain minimum limits of liability from subcontractors and typically proof must be provided before you can begin work for that company.  You should pass that information along to your insurance agent before beginning any work to ensure that the cost of purchasing such policies do not outweigh what you are receiving for doing the work.  The cost of purchasing these policies and endorsements should be considered when you agree to perform a certain service.  A sample certificate of insurance or a list of insurance requirements can be requested up front from the contractor.
If you have any questions as to anything discussed please feel free to give us a call at 704-494-9495.

Non Emergency Medical Transportation Insurance

Non emergency medical transportation is classified as the transportation of any individuals where an emergency situation  does not apply.  The service is usually different from that of a taxi service due to the fact that there is more passenger assistance offered.  The vehicles typically have the ability to accommodate wheel chairs.  Passengers are typically physically handicapped or elderly.  It is safe to say that if you have flashing lights and/or a siren than you are not classified as non emergency medical transportation.  You would be considered emergency transportation at that time.

If the above describes your business than please read on for information on adequately insuring your business.

What types of insurance do I need?.

Commercial Auto Liability

This policy will cover you if you hit anyone or anything.  It is very important that you make sure that your vehicle is not on a personal auto policy or your losses incurred can be excluded.  A commercial auto policy will be required for losses that occur while you are using the vehicle for business use.  Auto liability will cover bodily injury and/or property damages.  It is also highly suggested that you carry medical payments on this policy at the maximum allowable amount by the auto insurance carrier.  That way small accidents will cover any small injuries that your passengers may occur.

Physical Damage Coverage

This is simply the comprehensive and collision damage to your car if you are at fault in an accident.  Again, you will want to make sure your policy is a commercial auto policy or coverage can be denied if you are using the vehicle for commercial use.  You may want to inquire into coverage for any permanently attached equipment to your vehicle as well such as wheel chair ramps.   In the event of a loss you want to make sure this equipment would be covered as well.

General Liability Insurance

General liability will cover any incidents that you are liable for outside of hitting other vehicles.  If your passengers incur major injuries and you are sued, you will want to make sure you are protected.  A general liability policy will cover these types of losses.   These policies typically start at $1,000,000 per occurrence although higher limits are available.

Other Policies

Other policies that may be important for you can include workers compensation, professional liability, and excess or umbrella liability.  We discuss each of these coverage in other articles.  Please review those articles for a more detailed description of these coverage types.

 

You may have a contract that requires you to have certain minimum coverages.  Typically you will receive what they call a sample certificate of insurance or insurance requirements documentation.  You should forward that information to your insurance agent for review so they can help you get the coverages that you will need.

The State of NC will also have minimum requirements that will depend on the number of passengers you can transport, whether you are crossing state lines, and the gross vehicle weight of the vehicle.  Keep in mind that the state minimum limits may be less that what you may feel is feasible to protect yourself.  You should get quotes on different limits to see if the additional premium is worth your being better protected.

If you have any questions on non emergency medical transportation insurance or if you would like a quote, please feel free to contact us at 704-494-9495.