In June 2007, QBE the Americas completed the acquisition of PFG (Praetorian Insurance Group), previously a subsidiary of Hanover Re. QBE is the largest insurance group in Australia, but it operates in 38 countries worldwide and hires more than 16,000 employees. Praetorian Insurance Company has been selling and underwriting a variety of policies, but the primary focus is for businesses including commercial auto. The acquisition complements QBE’s product diversity strategy in the U.S. Now working under the roof of QBE the Americas; Praetorian still maintains its traditions of commercial insurance.
Understanding Commercial Auto Insurance
In many respects, personal auto and commercial auto policies are very similar. Personal auto policies can even provide enough coverage for some business uses, and this is useful when you are driving your vehicle for both personal and commercial purposes. You need commercial auto insurance when your vehicles are only for business-specific use. One of the biggest advantages is that commercial auto insurance has higher liability limits. It is also necessary if your business involves hauling specialized equipment, transporting goods and people, and the use of unusual vehicles for example pickup trucks and sport utility vehicles.
Similar to personal auto, the rules of commercial vehicle insurance are different from state to state. QBE has the license to sell and underwrite auto insurance policies in 50 states as well as Puerto Rico and the District of Columbia. Because Praetorian Insurance Company works under the roof of QBE, the license also applies.
A brief overview of commercial auto insurance products available from Praetorian Insurance Company:
-Primary of up to $1 million
-Umbrella of up to $5 million
-Auto including auto rentals or second-hand auto dealers
-Artisan contractors’ business auto
-Specific niche transportation
-Local distance, 50 miles
The coverage for commercial auto is more or less the same with those for a personal vehicle. The difference is in the limit. Praetorian Insurance Company offers up to $1 million in primary option and up to $5 million in the umbrella option. The amount should be enough to cover damages or any liability issues in the event your business gets in the middle of a lawsuit as a result of an auto accident.
Parts of personal auto do provide coverage even when the vehicle is for business use. However, it will not produce the same amount of financial protection as you can get from the commercial auto policy. Imagine a situation when you are driving a pickup truck to deliver goods to a customer. In the middle of the road, you rear-end an own van that transports multiple passengers. In such circumstances, the driver and passengers of the van will sue not only you but also your company. Your personal insurance policy gives financial protection and pays the claim, but it will not defend or pay damages on behalf of your business. It is normal to expect that the drivers and passengers will want to collect compensations for vehicle damage and injuries from you and your business. Praetorian Insurance Company offers the right kind of protection for such circumstances. Types of Coverage
The scope of coverage by Praetorian Insurance Company Commercial Auto Policy can be either narrow or broad depending on your choice. The insurer provides a variety of policy for example trucking, specialized transportation, or the more extensive business auto options. In a simple way, the options are as follows:
1-Vehicles as business properties 2-Vehicles that your company owns, leases, or hires 3-Vehicles for business purposes
Most companies will choose the third options because the protection includes all vehicles, including those that your business owns and does not own, as long as they are for business affairs. The coverage even provides liability protection when an employee or employer drives a personal vehicle on business. While the scope is different, the basic types of coverage are the same. Commercial Auto Policy from Praetorian Insurance Company still includes three significant protections including Liability, Physical Damage, and Optional Coverage.
-Liability Insurance: it includes financial protections for property damage, bodily injury, and even death as a result of an accident in which you or your employee is at fault. The coverage provides legal defense as well. The amount of protection is up to the policy limit.
-Physical Damage: this is a combination of Comprehensive and Collision coverage. It protects against any damage to the vehicle whether or not the damage is a result of an accident. The perils may include flood, vandalism, theft, or falling objects. The amount of protection is up to the policy limit.
Because the risk of potential damages and loss is higher than a personal vehicle, Praetorian Insurance Company provides two different types of limits. For better protection, the Umbrella option has a limit of up to $5 million.
-Optional Coverage: some of the alternative coverage options are similar to those of personal auto insurance policy such as Roadside Assistance, Rental Reimbursement, Loan or Lease Coverage, and Vehicle Replacement due to the total loss.
For broader perils coverage, the company also provides General Liability Insurance. It protects your business from another person’s and another business’s claims for bodily injury, medical cost, and property damage. The protection does not focus on vehicles, but the broader version of the business. The limits are the same at either $1 million or $5 million, and General Liability is available in 50 states including Puerto Rico and District of Columbia.