Extending Your Insurance Coverage
If you have a personal or commercial auto insurance policy, you can be reasonably confident that accidents or incidents occurring when you are behind the wheel will be covered through your coverage. However, if your friend is driving your car or someone who isn’t employed with the company gets involved in an accident, how will your provider handle the claim? The term designated insured endorsement is the clause that explains who the insurance policy will cover.
Unwritten Policy Terms
Individuals or organizations listed in the insurance contract are considered the ‘insured’ of the policy. The terms of the contract apply to those mentioned persons on the paperwork and involved in the claim. Understanding just how far this applies is a little bit trickier. To really know who is covered, you must consider the issue of liability and permissive users. If you or your company allows an individual to operate your vehicle, this could be considered a permissive user and eligible for protection.
Although many policies will state the terms of the designated insured endorsement, you will want to clarify its application with your broker. Check for the conditions of claims, potential documentation for filing under these terms and how far the coverage applies. It is better to know how your provider interprets application before you find yourself in a situation with a denied claim or legal hassle.