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It might me a privately owned, a pickup, a van or bus, it is a commercial vehicle. You may have had your “business” vehicle insured on your personal auto policy for years and everything has been just fine, but what do you think would happen if you were involved in an accident while you were transporting 3 registered students? Once your personal auto insurance company determines that your vehicle was being used for business purposes at the time of the accident, you could have some very serious problems.
It could go as far as having your claim denied, a standard question on all personal auto insurance applications is – ” Do you use this vehicle for business purposes?”.
If you find that you are improperly insured call us today for a commercial auto insurance quote.
In an indemnity or hold harmless agreement, one party (the indemnitor) promises to reimburse, and in some cases defend, the other party (the indemnitee) against claims or suits brought against the indemnitee by a third party. The purpose of the hold harmless or indemnity agreement is to transfer the risk of financial loss from one party (the indemnitee) to another party (the indemnitor). This transfer or shifting of financial consequences is often called non-insurance contractual risk transfer and is considered a risk financing technique.
One very important aspect of the hold harmless or indemnity agreement is that it does not relieve the indemnitee (the party with the benefit of the promise) from liability to the third party. The indemnitee may be found to be completely liable to the third party for its bodily injury or property damage. The hold harmless gives the indemnitee a legal right to collect from the indemnitor (to the extent included in the contract and allowed by law) for the damages paid to the third party. The purpose of contractual liability insurance is to pay, on behalf of the indemnitor, the damages to the third party.
This is a factor applied to the policy premium for a risk to reflect variation from the experience of the average risk of its type. From the risk’s own past experience, the experience modification is determined by comparing actual losses to expected losses. This comparison of losses results in a premium reduction (credit) or a premium increase (debit). For example, a modification of .85 results in a 15% credit or savings to the risk, while a modification of 1.10 produces a 10% debit or additional charge to the risk. In some cases, no change results and a modification of 1.00 (unity) is applied.
In computing insurance premiums, experience modification factor refers to a provision for premium adjustment that recognized the merits or demerits of individual risks. The modifier or “mod” is a factor calculated from actual case loss experience, as reported on the unit statistical reports, used to adjust an insured’s manual premiums (up or down). It compares the insured’s experience to average class experience.
Loss reports show three categories – Incurred, Paid, and Reserved, these are the three types of workers compensation costs.
Money spent on a claim
Money set aside (outstanding) for future payments
Combined total of paid plus reserved amounts