Commercial lines insurance is a policy designed by the insurance company to cover a business for their insurance needs, these policies can be quite complex and some larger businesses will use a combination of policies to offer the best value rather than working with a single insurer.
In US Auto Insurance terms, commercial lines insurance, applies to company fleet vehicles and is a standard fixture of corporate fleet management policies.
How does Commercial Lines Insurance work?
Commercial lines policies have many possible permutations of benefits and coverage, and it will depend on how your company has structured its insurance cover and risk management to determine exactly what is included and what is excluded.
Employees who drive a company car which is covered under such a policy will normally be made aware of the important points regarding the commercial lines policy in either their contract or the company employee manual.
If you are unclear as to how your company’s commercial lines policy affects you, you should contact your manager or HR department to discuss it. Generally in the case of commercial lines policies you should not contact the insurer direct as they may not be authorized to speak to you, with regards to any of the details, by your employer.
Who is usually responsible for arranging commercial lines insurance for a company?
From the insurers perspective there is no “right” role for arranging commercial lines insurance, and this may vary from employer to employer.
However it is typical that the company’s fleet manager will arrange the commercial lines insurance for a company’s fleet – if the company fleet is large enough to justify a fleet manager.
In some cases, in order to concentrate on core business activities, the company involved may outsource their fleet management. If this is the case they may outsource the responsibility for their commercial lines insurance too, or they may keep the responsibility in house.
The best way to find out who is responsible in your organization is to ask your line manager or a member of your HR team.
What else should I know about commercial lines insurance?
If your company has commercial lines insurance, this may not free you of your obligation to pay the deductible, or any excess over policy limits or outside of the policy’s coverage. These obligations will be defined contractually between you and your employer.