Automatic Additional Insurance
As a part of liability insurance, it may be necessary for you to add another person or organization to your policy. This person or organization, however, should fall within the rules of your policy.
If you do not have an existing policy and automatic additional insurance is something that is important to you, then know that it is easy to acquire. You can acquire a new policy and list the entities that you need insured. You can add what you need for a reasonable cost.
You want to be insured at every possible angle. In other words, every ounce of your life or business should be appropriately insured. If there are any stones left unturned, thee is the risk that an accident could occur and you be held completely financially liable.
What is Covered?
You will need to evaluate your options so that you know what is covered under automatic additional insurance and what is not. There are allowances and there are exclusions. Allowances means that a claim can be satisfied, while an exclusion means that you are left to your own devices in order to satisfy a claim.
Nevertheless, some of the basics are covered through automatic additional insurance. These basics include bodily injury and property damage liability. It may also be possible to obtain advertising and personal injury liability.
As for how these acts are covered, they must be accidental. No intentional acts are covered. Whether you made an omission that led to damage to someone else or whether you were negligent in another way, protection is to be had. A good example is if an accident happened even though you were complying with safety standards. There are times in which you can do all that you can to avoid an accident, yet it still occurs. All protocols were followed, but something had to happen anyway. When this occurs, you should not have to worry about the legal costs.
It is important to note, however, that it is important that all individuals and all entities are listed in the policy. If you try to make a claim and a particular entity is not covered, then you are left to your own devices.
You should also be mindful of limits, which is something that you should consider when purchasing all insurance policies. You need to ensure that your limits are enough to cover any legal costs and other liabilities that may come to you. If the limits are not enough, you will have to pay the remainder of the damages out of your pocket and that can be very expensive.
If something happens that the damages do not reach the limits covered by the insurance, then the liability amount will be paid rather than any differences relayed to you. It is favorable for both you and the insurer that the liability be as low as possible.
When an Incident Occurs
The moment an incident occurs, it is very important to report that incident. It does not matter if you believe whether or not an incident will result in a claim against you. Keep in mind that any incident can result in a claim.
If a suit is filed against you, you need to provide the insurance agency with written notice of the lawsuit so that they can go ahead and begin preparing themselves for what is to come. If you make a request for your defense, then the lawsuit is brought against the policy since the policy is going to help in providing financial assistance or will completely cover the legal costs involved in the suit. These are all important factors to be aware of when considering automatic additional insurance.