Arkansas HVACR NewsMagazine September 2022

S tate, National, Chapter News State national Chapter News

Uninsured/Underinsured Motorist Coverage – Provides protection for the policy holder when they are not at fault in an accident, but the at fault party does not carry any liability insurance (Uninsured) or sufficient insurance (Underinsured) to pay for the damage to the policyholder’s property or medical bills. commercial underinsured motorist coverage, you are purchasing liability insurance for other drivers who do not have enough insurance… Essentially, when you buy commercial underinsured motorist coverage, you are purchasing liability insurance for other drivers who do not have enough insurance to cover the costs related to the accident. In the Personal Auto world, I would say this is a must buy. It is relatively inexpensive and gives the policy holder peace of mind that they will be protected after a not at fault accident. In the Commercial Auto world, it gets a little more complicated. The vehicle itself should be covered under Comp & Collision (explained further below) and the employee driving the vehicle is covered under Workers Compensation if injured. So, the company should be protected from financial loss after a not at fault accident regardless of the other party’s insurance status. That said, the coverage is very important if you allow …when you buy

passengers in your vehicles who would not be covered under Workers Compensation, and it can be an added benefit to protect your employees while they are out on the road. (Uninsured/Underinsured Motorist) coverage is very important if you allow passengers in your vehicles who would not be covered under Workers Compensation Uninsured/Underinsured Motorist is one of the few areas that an employee can actually recoup benefits from its employer on top of Workers Compensation Coverage after an injury. Typically, Workers Compensation Coverage is an injured employee’s “sole remedy” for workplace accidents . But, in the case of a vehicle accident where the employee is not at fault, the injured employee would also have the right to look for compensation from the at fault party. If the at fault party does not have Auto Liability Insurance (or not enough coverage) the injured employee can then file a claim on the employer’s Uninsured/Underinsured Motorist Coverage! So, if you want to provide that added benefit for your employees, this is a great coverage to have. If you do not want that potential “double dip”, it is a coverage that you can deny in Arkansas. Physical Damage Coverage – Provides protection for the insured vehicle, typically on an Actual Cash Value basis, subject to the deductible. Physical