Commercial auto insurance is one of those product lines that is made up of many components to be as effective as possible. Bodily injury & property damage liability coverage, often known as liability coverage, is one of the most important parts. It is mandatory in most states and regulated by federal transportation laws. While there are other components of commercial auto insurance that mitigate and protect against additional risk, bodily injury & property damage liability coverage is the minimum.
That being said, there are various amounts of bodily injury & property damage liability coverage available to clients, not just for commercial auto insurance. If you want to write more business as an insurance producer, it’s important to explain to your clients why they should come to you for bodily injury & property damage liability coverage and what level of coverage best suits their specific situation. Since bodily injury & property damage liability coverage is mandatory in most places, clients may be inclined to shop around. Help yourself stand out by fully understanding your clients’ needs and how you can help.
Bodily Injury & Property Damage Liability Coverage Basics
When insureds are in an at-fault accident, bodily injury & property damage liability coverage meets the costs of injuries and damage, both to people and their property. Property damage liability insurance pays for the other drivers’ vehicle expenses and additional damage to property like fences, yards, and mailboxes.
The bodily injury liability insurance component is what covers the costs of medical expenses for injuries caused to drivers and passengers in an auto accident. It can also cover lost wages if the injured person is unable to work and can provide some compensation for pain and suffering. In more serious cases, this bodily injury & property damage liability coverage can pay for funeral costs in a fatal accident. It also covers legal fees owing to any lawsuit stemming from the accident.
It’s important for your clients to understand that bodily injury liability coverage will not pay for their own expenses or lost income if they caused the accident. And property damage liability coverage will not pay for damages to the at-fault drivers’ vehicle. Additional insurance coverage is needed for that.
Ensuring a Client Has The Right Bodily Injury & Property Damage Liability Coverage
Your clients might be tempted to stick with the minimum of bodily injury & property damage liability coverage to save on expenses. If they want to go this route, be sure that they understand the limits of the coverage and that they are responsible for paying any additional costs out of pocket. Those costs might be more than clients expect.
One study shows that in 2017 the average property damage claim was $3,638 and the average claim for bodily injury was $15,270. Medical and legal expenses can add up very quickly. With compensation for lost wages and income on top, what seems like an inexpensive accident can turn into something financially devastating. In most situations, clients facing a claim will wish they had increased their liability limit from the minimum.
When helping your client choose the right insurance coverage, explain the difference between per-person limits, which apply to each person injured in an accident, and per-accident limits, which apply to the entire incident. You may also want to discuss the option of personal umbrella insurance, which kicks in when a client reaches the limits of bodily injury & property damage liability coverage to help pay any remaining costs.
Work with Prime Insurance Company
If you are not already offering quality, reliable bodily injury & property damage liability coverage, you are kicking potential business to the curb. By working with Prime Insurance Company, you can write business in more areas. Our aim is not to compete with your current markets, but to give you the tools to extend your reach and grow your client base. We provide coverage for their exceptions, as well as supporting your work to provide coverage to clients with difficult risks, including cancellations and declines.
Offering bodily injury & property damage liability coverage through Prime Insurance Company brings new opportunities to your business and your clients. Keep your clients with you, instead of losing them to a competitor, by accessing our fair and fast claims services.
Get in touch with us using our online form to request a quote, give us a call at 800-257-5590 or contact us at quotes@primeis.com. We’re also active on social media, so check out our Facebook, LinkedIn, Twitter, YouTube, and Instagram for more from us.
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Authored by Rick J. Lindsey, CEO, President, and Chairman of Prime Insurance Company
Rick J. Lindsey hails from Salt Lake City, Utah. He began working in the mailroom of his father’s Salt Lake City insurance firm, getting his introduction to the business that became his lifelong career. Lindsey quickly rose through the ranks while working in nearly every imaginable insurance industry job. As an entrepreneur, specialty lines underwriter, claims specialist, risk manager, and a licensed surplus lines broker, Rick Lindsey is highly skilled in all levels of leadership and execution. As he progressed on his career path, Rick discovered an urgent need for insurers willing to write policies for high-risk individuals and businesses. He was frequently frustrated that he could not provide the liability protection these entities desperately needed to safeguard their assets. He also formed the belief that insurance companies acted too quickly to settle frivolous claims. Lindsey decided to try a different approach. He started an insurance company and became the newly formed entity’s CEO. This opportunity has enabled Rick to fill a void in the market and provide a valuable service to businesses, individuals, and insurance agents who write high-risk business. Prime Insurance also specializes in helping individuals and businesses who live a lifestyle or participate in activities that make them difficult for traditional carriers to insure. If you’ve been denied, non-renewed, or canceled coverage, don’t give up quite yet. Chances are Prime Insurance can help.
