But I Just Sent Her Out For Staples

Its not a stretch to imagine that small businesses run out of things.  From toilet paper, to sticky pads, to highlighters, to light bulbs, and in the example I’m about to tell you, Staples…

How Are You Supposed to Know What Coverage You Have?!

About a month ago at a local networking function I stepped into a circle of six small business men and women.  This was a new networking group for me so most of the members were not privy to my profession. As I stepped into this circle of professionals in all my insurance glory, (ready to get my network on), I heard a small business owner regale to a collection of his peers this tale of Insurance Horror and Conspiracy…

The small business owner’s story was short.  But it was the perceptions contained within the story that caught my attention.  He started the story with the classic “Insurance is a scam” rhetoric but his next point is what really bothered me, he said, “How is anyone supposed to know this stuff?” An extremely powerful statement that we will get back to.

So the story is, this small business owner asked one of his employees, (a woman in this case), if she could pick up some staples on her way back from lunch.  The Office Manager had accidentally forgotten to reorder and the office had run out.  Well as fate would have it, after picking up the staples from Office Max, this young lady got into an at-fault car wreck driving back to the office.  Nothing fatal or serious but two cars were involved and there was approximately $30,000 in damages.  The employee mentioned to the other drivers that she was on an errand picking up staples from Office Max.  A few weeks later the small business owner received a letter in the mail stating his organization could be sued for the damages.

He called his Insurance Agent… NO Coverage… He did not purchase Hired and Non-Owned Auto coverage with his Business Owner’s Policy.

Moral: Always purchase Hired and Non-Owned Auto

Hired and Non-Owned Auto coverage provides liability coverage arising out of the use or maintenance of a Hired or Non-Owned Auto and can easily and cheaply be endorsed to any business policy (unless your business does deliveries then take out the Cheaply part). Hired autos are autos the business leases, hires or borrows.  Non-Owned autos are leased or borrowed by the insured, but used in business. This typically refers to an employee’s use of their personal auto for business purposes. Aha!

So, How is anyone supposed to know this stuff?”

ASK?! Have a dialogue and relationship with your Insurance Agent! Ask your Agent where your business might have gaps in coverage. Discuss the cost to fill those gaps.  Never Ever Assume coverage. We all know what happens when you ASS-U-Me…

Trust your Agent but do your Due Diligence…

Disclaimer:

This article is for informational purposely only. There is no legal advice being suggested or proffered and the author assumes no responsibility or liability for the actions take or not taken by the readers based upon such information.

Thank you,

Ryan H.

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