Imagine this situation:
You’re an auto mechanic with your own business and you carry insurance for the business, including a commercial auto policy which covers vehicles. A customer brings you a vehicle that needs extensive work and in order to assist the customer, you rent them a vehicle you plan to deliver the next day. During that transport, you are involved in an accident and you are badly hurt. The individual that caused the accident has limited liability coverage of $15,000.

The driver’s insurance company pays you the $15,000 and then you make a claim under your commercial auto policy for underinsured motorist benefits. You’re under the impression that you have underinsured motorist coverage under the policy in the amount of $100,000, but your company rejects your claim and tells you that you have no coverage available to you under these circumstances

Your policy which you thought provided protection contains what is called an “auto business exclusion.” This exclusion precludes coverage for injury caused using a non-owned vehicle in any kind of auto business, including selling, repairing, servicing, storing, or parking motor vehicles. Under the law, this exclusion is valid and you have no coverage under your policy.

The Bottom Line:
Insurance policies often contain different types of exclusions to coverage. Therefore, it is imperative that you’re sure you know what you are buying when you purchase insurance. If you have any questions about your rights, contact me at Stark & Stark.