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How Do Separate Limits Work?

hired non owned auto
hired non owned auto

When it comes to hired non owned auto policies, there are often a lot of numbers thrown around. These numbers can be confusing for an individual’s private insurance, let alone for a staffing firm. Separate limits is a term that refers to a lot of the numbers. These numbers determine the monetary coverage each aspect of a claim may receive.


Determining the Numbers


The actual numbers of the limits in your firm’s auto policy depends on the type of coverage purchased. Usually, with liability insurance, the separate limits apply to bodily injury coverage per person, per accident, and property damage. Depending on what state the staffing firm resides in, these numbers may differ. In New York, for example, the minimum liability insurance is 25/50/25. This translates to $25,000 per person bodily injury coverage, $50,000 per accident bodily injury coverage, and $25,000 property damage coverage.


Putting the Limits to Work


Liability insurance only covers incidents that are the fault of your company or employees. Should something happen, you will want to make sure the limits will hopefully cover the damages. In 2012 across the United States, the average claim for bodily injury was around $14,653 while the average property damage claim was about $3,073. Back in 2008, the average per person cost for bodily injuries was over $68,000. If you have a per accident limit of $50,000, that extra $18,000 comes out of your pocket.


Separate limits for hired non owned auto liability insurance means there are different limits for bodily injuries and property damage within a policy. Minimum coverage is required, but be sure to get a policy with limits you are comfortable with in case of an accident.