Coml Auto & Vehicle titled in personal name.

[RangerRick]

Have a commercial client that has a key employee who essentially runs the C Corporation. The key employee is being permitted to add their personal vehicle to the company's commercial auto policy.

The issue is the vehicle is titled in the personal name of the key employee, it is not titled to the first named insured (the corp). The symbols on the coml auto policy are 1 for liability & 7 for all other coverages including comp/coll & FPBs.

If I endorse the vehicle onto the schedule Liability is any auto, physical damage & FPBs will be good since 7 = scheduled. I have had underwriters push back on this in the past. What am I missing here, is this OK to do or am I leaving a huge gap somewhere?

As I write this I would suspect that the vehicle owner could be named individually in a suit as the vehicle is titled to them and not the corp and in that case the vehicle owner would have no liability coverage. Any way to resolve this without re-titling the vehicle or endorsing on the employee's name as a named insured?

 

[AZDave]

Make sure your policy has the endorsement - Employees as Insureds ( CA 99 33 ) . Most companies offer some type of bundle enhancement that will include this.

Each Carrier seems to treat this differently. I have on company that insists on a signed lease agreement b/t the employee and entity. Others don't seem to care as much.

This same endorsement is needed for any Owner/member/officer as they too are employees.

Good Selling!

 

[RangerRick]

Thanks Dave - Greatly appreciate. Spoke with the carrier and they said (CA 99 33) combined with CA 99 47 (employee as lessor) and an executed lease & appropriate symbols will provide the solution.