Why do I inevitability a Commercial General Liability policy?
I am leasing a Dump Truck for my business. I have an auto policy, but the lessor is relating me that I need a Commercial General Liability policy as okay. I know what a CGL policy is, but I have no have need of for it. Why do I need to insure my business near a CGL to lease a dump truck? I have already signed lease documents. I am not the "owner" of my vehicle until I fufill my lease, the hill is the current owner. Why do I need a CGL also?
Answers:
OK, regerugged have part of the answer for you and I deem Jim is a little confused more or less what general Liability is for. General Liability does NOT cover punitive damages and it does NOT cover liability for any amount of violate you might do with a vehicle.
The largest purpose for General Liability is that there are undisputed stipulations under enduring Auto policies regarding loading and unloading of vehicle. Sometimes it is covered and sometimes it is not which completely depends on the policy. The loading and unloading of vehicles is mostly covered under the CGL policy.
The bottom row is that having a CGL policy help you to cover all your basis. The lessor is just covering their own butt by have you get the CGL policy. They don't know what you will be using the truck for and they in recent times want to make sure that regardless of what you do near the truck, you are covered so they don't get sued.
I hope this help!
Because you are driving a commercial vehicle, and if you run into someone next to it, Your business is liable, not the bank as the owner of the vehicle. The soul you hit can sue your business, and if your the owner, you as well. Having Commercial Liability Coverage will cover your business's liability within the event that an accident happen.
Regular Auto insurance does not offer as much coverage, or coverage for punitive damages should you achieve sued. Regular auto insurance usually only covers defile to the vehicle and medical expenses up to a certain amount. That's adjectives.
The main foundation is that you operate a business. It is not possible to believe of all of the things that can come about where you can be liable and not covered lower than the auto policy.
I recommend you follow your agent's advice.
Well, depending on what company your commercial auto policy is with, they may or may not cover the "move up exposure" - if you, for example, hit the side of a house with the heave while emptying out a nouns of mulch, SOME commercial policies exclude that as "loading & unloading", which is covered under a CGL policy.
Your agent should be capable of tell you that! If they don't know it, after you need someone who know what they heck they are doing.
I will try to be as plain as possible. Jason S. nailed it.
The USE of the vehicle is covered lower than your Auto policy ...as you already know.
The END RESULT from the use of the vehicle is why they need General Liability coverage for. Case contained by point.
You take a nouns of dirt out to someones house and dump it on the neighbors very expensive rose bush by mistake.
The accomplishment of dumping and the actual pile of dirty itself has nought to do with the "use of the Truck ".
The neighbor Sues you and his neighbor for property make worse
to his Rose bushes. CGL is your needed coverage.
Huh?