Many businesses rely on their company vehicles to provide transportation, catering, and other guest services. Although these vehicles are an invaluable resource, owners may neglect to purchase adequate coverage to replace shuttles and buses after a tornado strikes. Attorney Bill Voss explores tornado risks and necessary coverage for operators of limos, taxis, shuttles, charter buses, party buses, and other transportation services.
Coverage for Tornado Damage to Shuttle and Bus Services
While commercial auto coverage is a must-have for any transportation business, this coverage will usually only pay for damage caused by a collision. In order to get coverage for adverse weather events, owners will need to purchase comprehensive commercial auto insurance. If owners do not want to invest in comprehensive coverage, they may be able to protect their vehicles from tornado damage through a specified causes policy. This optional form of coverage kicks in if tornado damage is specifically named as a cause of loss in the policy.
Owners should carefully consider their policies for extensions and exclusions that can affect the value of their claims, such as:
- Multiple causation. Tornados can involve a variety of hazards, including rain, hail, flooding, and high winds—and some insurers may deny claims if the damage could have been caused by an excluded peril. As a result, owners should avoid policies that include “anti-concurrent causation” clauses.
- Policy extensions. If your transportation services provide significant income, you may benefit from policy options that allow you to replace your vehicles until yours are in working order. Insurers may offer add-ons such as towing expenses, vehicle rental fees, and replacement of transportation accessories (such as onboard PA systems and satellite navigation units).
- Business interruption. Business interruption insurance, also called lost business income, provides up to six months of income replacement to cover the loss of revenue until normal operations can resume.
- Seasonal insurance. If you rely on shuttle services during a certain time of the year (such as holiday weekends or during yearly festivals), seasonal business insurance may offer an additional amount to replace the earnings you would have made during this time.
If you are having trouble getting your insurance company to cover all of your tornado losses, we can help. The attorneys at the Voss Law Firm can read through your policy carefully and negotiate with the insurer on your behalf, getting you the maximum amount of coverage you are owed. Simply fill out the form on this page today to learn more about your options, or order a free copy of our book, Commercial Property Owners Must Read This BEFORE Filing an Insurance Claim.