Automobile Liability
This part of your auto insurance provides protection for the injuries you cause (bodily injury) and the damage you do to other people's property (property damage). One million dollars of auto liability coverage should be the minimum limit for banks.
The coverage symbol should be "any auto" or at least must include hired and non-owned autos. See section below for info on the coverage symbols used in most policies.
Uninsured Motorists/Underinsured Motorists
Uninsured/Underinsured motorists insurance pays for the injuries to you and others in your car, caused by a driver with either no insurance or too little insurance. Your insurance pays you, then "goes after" the other person.
Coverage availability varies by state. In most cases, it is best to have the limit of uninsured motorist coverage the same as your liability coverage. Recall that injured employees (while working) are probably covered by workers' compensation.
Personal Injury Coverage
Also known as "no-fault" or PIP insurance. It pays for your medical bills caused by an auto accident. Under no-fault, you don't need to sue the other party. This coverage section is not a part of auto insurance in all states.
Medical Payments
Pays the medical bills for people in your vehicle when there is an accident. In most states this coverage is limited to some relatively small amount $1,000 or $5,000. It can pay the deductibles and co-payments of your health insurance.
Comprehensive
Also called "Other than Collision." This part of your auto insurance pays for the damage to your car caused by something other than an accident fire, hail, windstorm, theft, or vandalism, for example. The coverage section also pays for the damage to your car caused by hitting an animal (not considered an accident but an act of God). There is usually a deductible stated the amount you pay in the event of an accident.
Use a large deductible to control premiums. Consider not buying comprehensive coverage if your vehicle is more than five model years old.
Collision
Pays for the damage to your car or truck that has been in an accident. The policy will include an amount you pay before the insurance company steps in—a deductible. Use a large deductible to control premiums.
Consider not buying collision coverage if your vehicle is more than five model years old.
Towing & Labor Insurance
Pays for the cost of towing and labor expenses when your vehicle is disabled. Usually limited to some small amount—$35, for example. Usually not worth the premium. Don't turn in small property claims!
Rental Vehicle Coverage
Pays for the rental of a car after an accident. What would you do if a particular vehicle were taken out of commission? This is another area of low severity. It may be a part of an extension endorsement provided by your insurance.
Auto Extension Endorsements
Many insurance have a policy endorsement that extends protection to other areas. Coverage can include life insurance, additional medical payments, payments for remaining lease installments, and extending the coverage for a car you rent. Talk with your agent about your policy.
Non-Owned Auto Coverage
It isn't just the cars you own that expose your bank to liability. Every time an employee goes to a meeting or visits with a customer, the bank is exposed. If a loan officer causes an accident while driving his own vehicle on bank business, the bank could be sued. Check with your agent to be sure you have non-owned auto coverage.
Drive Other Car Coverage
Protects employees who are provided company cars and don't have their own personal auto policy. Talk with your agent. You may get this coverage automatically if you buy the coverage broadening endorsement offered by many insurance companies.
Renting Cars
When renting cars (short-term rentals from Hertz and Avis, for example), buy the coverage offered by the rental car company or use a credit card that provides the same insurance. Call your credit card customer service department for the details of your credit card company's service.
Damage to Employee Vehicles
What are employees' expectations for damage caused in accidents while driving their personal vehicles? Will you pay for damage to their vehicle or should the employee rely upon their own insurance? Will you pay their deductible? Make your plan clear in your employee handbook to avoid misunderstandings. Send an annual reminder to all employees stating your bank's policy on employee vehicle usage.
Use Same Insurance for Auto and General Liability. Consider having the same insurance for auto and general liability to eliminate any coverage gaps or overlaps.
Repossessed Vehicles
How are repossessed cars covered by your auto policy? "Any auto" liability coverage will protect the bank. How about damage to the vehicles comprehensive and collision insurance? A repossessed vehicle is considered an owned vehicle by most insurance You may be able to add coverage to your bank's auto policy. Talk with your agent.
Parking Garages
Is the exposure for your parking garage covered? Parking vehicles may expose the bank to claims that you are responsible for any damage that occurs. This is certainly true if you charge a fee for parking. What are employees' expectations of payment for damage to their vehicles while parked in the bank's parking lot? Talk with your agent about garagekeepers insurance.
Coverage Symbols
Commercial auto policies specify the extent of coverage provided by using numeric symbols to indicate the breadth of the protection. The declarations page of your auto policy outlines coverage areas (liability, uninsured motorist, medical payments, etc.) with coverage symbols that apply to the type of insurance. The applicable symbols are numbers 1 through 9.
Symbol 1 is the broades any auto. Symbol 9 provides coverage for non-owned vehicles only. Using symbol 7 reduces the coverage to claims from vehicles listed on the policy only. Insurance sometimes use a combination of symbols, 8 and 9, for example, to provide coverage for hired and non-owned autos.
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