Schedule a free one-half hour consultation


Insurance coverage – what the policy covers and what it does not cover – is often misunderstood by business owners.  A business owner assumes that they have adequate insurance, but generally, upon a review of the business’ unique circumstances, the business if oftentimes not adequately covered. 

Hypothetical:  A taxi cab company has insurance on all of its vehicles, but the insurance limits are the lowest allowed in the State.  One of the drivers is involved in an accident where the other driver is seriously injured.  The medical expenses are $300,000 and rising.  In this scenario, the taxi cab company will likely be sued and a claim to pierce the corporate veil (allowing the owners personal assets to be used) would most likely be brought by the injured driver.  Because the taxi cab company is undercapitalized (i.e., uninsured), the owners of the taxi cab company will likely have to personally pay out any judgment above and beyond the insurance limits.

Hypothetical:  Your office manager at the end of the day brings the mail to the post office.  On the way between your office and the post office, your office manager gets into an accident.  In this scenario, your business is responsible because your office manager was “working” when she brought the mail to the post office.  It is important that your business has the correct insurance policy that covers employees using their personal vehicles for work. 

It is essential that you are providing your insurance agent with all of the correct information regarding the facts related to your business so that your business has adequate insurance coverage.  In addition, you should review your policies with your insurance agent at least one time per year because as your business grows and changes, the insurance you had that was adequate when you purchased it might not be adequate today.  Finally, it is important to meet with an attorney to review your policies so that you know what your insurance policy covers, and what it does not cover. 

Spangler and de Stefano, PLLP helps businesses understand their insurance coverage and keep its corporate veil protected. 

The material contained herein is for informational purposes only, and is not intended to create or constitute an attorney-client relationship between Spangler and de Stefano, PLLP and the reader. The information contained herein is not offered as legal advice and should not be construed as legal advice.