By Adam Saydlowski, Underwriter
Auto insurance is a growing need for many people and businesses. More people are driving now than ever, driving to work, school, and to complete errands. Millennials, now the largest portion of the population, are moving out of large cities and into the suburbs to buy houses and start families. The economy is thriving with businesses increasing work, purchasing more vehicles to send employees to jobs, and driving longer distances. When looking at Auto insurance it is important to ask: Do I have enough coverage? Should I add coverage for my growing business? Are there any gaps in coverage that could cause a problem?
Drive Other Car coverage is a fairly common endorsement on Commercial Auto insurance policies. Drive Other Car (also known as DOC or CA9910), is a broadened coverage endorsement that gives certain named individuals coverage on vehicles that do not have to be listed on an Auto policy. DOC provides broadened coverage for named individuals when an executive officer is given a company vehicle to use for business purposes. The endorsement also extends non-owned Auto coverage for the individuals listed on the endorsement. These autos can be vehicles the insured does not own on a regular basis or ones that are leased for a short period of time.
Not all businesses need the DOC endorsement. It varies depending on how the company operates, how often certain types of vehicles are used, and how many employees are driving on behalf of the business. Sometimes smaller businesses do not require Drive Other Car coverage. Since a few of them may operate by using personal vehicles to complete what needs to be done. DOC is necessary if an employee drives an auto that belongs to another person whose insurance may not be maintained or if the limits are inadequate. Additionally, the need for DOC is necessary when a personal Auto policy is not in place. If there is a personal Auto policy in place and DOC coverage is on a commercial Auto policy, there is essentially double coverage. The coverage comes with additional exposure and an additional premium to the Auto policy. These are factors that should be considered when thinking of adding DOC coverage.
It’s always wise to check if DOC is necessary and if it makes sense to add it to your commercial Auto policy. Personal Auto Policies and Umbrella Policies should also be reviewed or added for more a complete insurance program. Businesses operations may change from year to year and this additional coverage may be needed for proper coverage.
For more information about Auto coverage or Drive Other Car coverage, please contact us.