Reminder: APV License Plate Requirement and Its Impact on Insurance Coverage

 Earlier this year, we informed you that a registration exemption for all-purpose vehicles (APVs) being used on private property was removed from Ohio law. As a result, APVs used on private property or on land to which there is a contractual right are now required to be registered with the Ohio Bureau of Motor Vehicles (BMV). Please note: There was no change to the farm exemption.

In addition to this change, a new license plate requirement took effect July 1, 2010. Operators of APVs are required to display a license plate and registration sticker rather than a registration number after this date. After an owner obtains a license plate, the BMV will issue a new registration sticker to display on the license plate for each three-year registration period.

These changes were buried in the transportation budget bill passed last year at the request of farm owners who want to be able to identify operators of these vehicles when they are trespassing. Unfortunately, the registration change creates a negative impact on how these vehicles are covered under ISO homeowners’ insurance policies. It appears that because these vehicles are now required to be registered, they are excluded from the liability portion of a standard homeowners’ policy. Since the units are subject to registration, there is no automatic coverage afforded under the homeowners’ insurance policy.  Please contact us to discuss this issue and how we can provide adequate coverage for your APV.

In a June media release, the Ohio BMV stated that “current decals remain valid until their expiration, when they must be replaced with an APV license plate.”  The Ohio BMV also reminds us that “APV License Plates do not entitle the rider to operate the APV on public roadways. Laws regarding operation of APVs have not changed.”

If you own an APV or are considering the purchase of one, please contact us for details on the best way to insure the unit for your specific needs.

Reichley Insurance Agency is committed to excellence. We pride ourselves on offering our clients reliable coverage and great service. As an independent Ohio insurance agency, we can provide you with all types of insurance coverage from the top carriers in the country. Our team of trusted agents will work with you to find a policy that meets your needs – and falls within your budget.  

 

Our dedication makes the difference...

   

Toll Free: 87-REICHLEY (877-342-4539)

Email: info@reichleyins.com

The information in this article is meant as a guideline only. There is nothing in this publication that alters the coverage or interpretation of any specific policy. Because some statements are generalizations, and because different companies’ policies contain slight differences, please refer to your specific policy. Call our office before making any judgments or decisions concerning your particular situation and coverage that may or may not apply. FKR5U7X67FVA

Commercial Insurance: Examination of Books and Records

  In your commercial property policy you will find a section titled “Policy Conditions.” This section of the policy spells out requirements of the policyholder and the insurance company. It covers information about each party’s right to cancel the policy, the insurer’s right to inspect the property, and conditions about abandonment of the property. There are many more conditions though, and it is a good idea that you make yourself aware of these provisions.

One of the conditions is the insurance company’s right to audit your books and records as they relate to your policy. Depending on your type of operation, you may already be experienced with the audit process. It is mostly painless and the information can usually be found in your accounting and employment records. The examination may take place during the policy period or any time within three years after the policy period ends, however, an audit usually takes place within a few months of your policy renewal.

The insurer will not just randomly go through your records. You will be given a list of requested information to facilitate the process. This process is usually pretty painless as long as you have current and accurate records.  Contact us with any questions.

Reichley Insurance Agency is committed to excellence. We pride ourselves on offering our clients reliable coverage and great service. As an independent Ohio insurance agency, we can provide you with all types of insurance coverage from the top carriers in the country. Our team of trusted agents will work with you to find a policy that meets your needs – and falls within your budget.

 

Our dedication makes the difference...

   

Toll Free: 87-REICHLEY (877-342-4539)

Email: info@reichleyins.com

 

The information in this article is meant as a guideline only. There is nothing in this publication that alters the coverage or interpretation of any specific policy. Because some statements are generalizations, and because different companies’ policies contain slight differences, please refer to your specific policy. Call our office before making any judgments or decisions concerning your particular situation and coverage that may or may not apply.

Commercial Insurance: Building Ordinance Coverage

 This endorsement provides coverage if the enforcement of any building, zoning or land use law results in added costs that are not covered as a direct loss.

The endorsement is separated into three distinct parts; sections A, B and C, which typically allows the policyholder to purchase one or all of these valuable coverages.

Section A applies to loss to the undamaged portion of the building. This endorsement covers the loss of value of the undamaged portion of a building caused by enforcement of ordinances or laws.

If a government agency requires the demolition of your entire building because the damage exceeds a certain percentage as detailed in their ordinances, this coverage would apply.

Without this endorsement, you would have no coverage for that part of the building that was not damaged because that part of the building had not suffered “direct damage.”

Section B of this endorsement covers the cost of demolition of the undamaged portion of the building. Without this coverage, you could be on the hook for tens of thousands of dollars in demolition and disposal costs.

Section C provides payment for the increased cost of construction if the code enforcement requires improvements to construction that were not in the original building. This coverage will pay these increased costs whether construction is at the same location or another location, with some restrictions.

The building ordinance endorsement requires that you purchase coverage equal to 80 percent of the property’s replacement cost value. This is an optional coverage. Call us with any questions.

Reichley Insurance Agency is committed to excellence. We pride ourselves on offering our clients reliable coverage and great service. As an independent Ohio insurance agency, we can provide you with all types of insurance coverage from the top carriers in the country. Our team of trusted agents will work with you to find a policy that meets your needs – and falls within your budget.

 

Our dedication makes the difference...

                                   

Toll Free: 87-REICHLEY (877-342-4539)

Email: info@reichleyins.com

The information in this article is meant as a guideline only. There is nothing in this publication that alters the coverage or interpretation of any specific policy. Because some statements are generalizations, and because different companies’ policies contain slight differences, please refer to your specific policy. Call our office before making any judgments or decisions concerning your particular situation and coverage that may or may not apply.

Commercial Property Coverage

 Coverage under the commercial property (CP) policy is for property only. A separate policy form provides liability. The CP policy covers buildings, the insured’s personal property, and under certain circumstances, personal property of others. For coverage to apply, there must be a limit shown in the declarations for that type of property.

Insurance contract interpretation relies on meanings disclosed in common usage dictionaries, unless the term is specifically defined in the policy. Building means the building or structure described in the declarations. Further definition is unnecessary since the only question that would arise in the event of a claim is if the building or structure is described in the declarations.

Coverage under building coverage applies to five other classes of property:

1. Completed additions to any building or structure described in the declarations.
2. Fixtures, including outdoor fixtures.
3. Permanently installed machinery or equipment.
4. Personal property used to maintain the building, structures or premises.
5. Additions under construction or alteration and repairs to the building or structure.

While completed additions to an insured building or structure are automatically covered, it is important to pay attention to the coinsurance requirement in the policy. To make sure that you maintain the proper coinsurance amount, it is important for you to contact us immediately when you start construction.

Fixture means something that is fixed or attached as a permanent attachment or as a structural part. An outdoor light attached to the building would be covered as a fixture. Outdoor furniture would not automatically be covered as a fixture.

Many businesses utilize equipment that is installed permanently. That does not mean that it has to become an integral part of the structure, but that it is installed without the ability to simply move it around without a significant effort to uninstall the piece of equipment. Examples would be a printing press or milling machine.

Personal property used to maintain the premises might include mowers and snow blowers, fire extinguishing equipment, floor coverings, or appliances for refrigeration or cooking. Items of personal property for the maintenance of the premises could be considered part of the building, but again, maintaining coinsurance is important.

Additions under construction or alteration and repairs to the building or structure are covered. Materials, equipment, supplies and temporary structures within 100 feet of the described premises would be covered unless there is other insurance applying. For these items to have coverage, the policyholder must have an insurable interest.

There is nothing simple about making these judgments, so it is important that you have someone who has a good understanding of commercial insurance to help guide you through this maze. We stand ready to help you with any of your insurance needs.

Reichley Insurance Agency is committed to excellence. We pride ourselves on offering our clients reliable coverage and great service. As an independent Ohio insurance agency, we can provide you with all types of insurance coverage from the top carriers in the country. Our team of trusted agents will work with you to find a policy that meets your needs – and falls within your budget.

 

Our dedication makes the difference...

   

Toll Free: 87-REICHLEY (877-342-4539)

Email: info@reichleyins.com

The information in this article is meant as a guideline only. There is nothing in this publication that alters the coverage or interpretation of any specific policy. Because some statements are generalizations, and because different companies’ policies contain slight differences, please refer to your specific policy. Call our office before making any judgments or decisions concerning your particular situation and coverage that may or may not apply.

The Coverage Gap: When Furnished a Company Vehicle

 A common situation many of us find ourselves in today is the personal use of a company vehicle. When you are furnished a company vehicle, you are generally provided coverage to use that vehicle through your employer’s auto insurance policy. But your employer’s policy usually does not cover you if you then borrow or rent a vehicle to be used personally.

If you also own a personal automobile, and have that auto covered by a personal automobile policy, you probably already have this coverage. But, if you do not own a personal vehicle, you definitely have a gap in coverage. Some employers will endorse their business auto policy to provide you with this coverage; however, it may be at your expense. The coverage is badly needed if you either rent autos, or borrow automobiles.

A second very important exposure you face is injury to a co-worker. The majority of business auto policies exclude coverage for you if you injure a co-worker riding with you in your company vehicle. In most cases, the worker would be covered by workers’ compensation, but some states allow an injured employee to sue the negligent party in addition to filing a claim.

In some cases, you can add extended non-owned auto coverage to your personal auto policy. Also available, in some instances, is coverage that can be picked up through the personal umbrella policy. The trend in umbrella coverage is away from extending this coverage, but some will fill the gap for liability from injuries and property damage you cause while operating a non-owned vehicle.

Reichley Insurance Agency is committed to excellence. We pride ourselves on offering our clients reliable coverage and great service. As an independent Ohio insurance agency, we can provide you with all types of insurance coverage from the top carriers in the country. Our team of trusted agents will work with you to find a policy that meets your needs – and falls within your budget.

 

Our dedication makes the difference...

   

Toll Free: 87-REICHLEY (877-342-4539)

Email: info@reichleyins.com

The information in this article is meant as a guideline only. There is nothing in this publication that alters the coverage or interpretation of any specific policy. Because some statements are generalizations, and because different companies’ policies contain slight differences, please refer to your specific policy. Call our office before making any judgments or decisions concerning your particular situation and coverage that may or may not apply.