Do I Need Uninsured Motorist Coverage?

 

Although you probably carry vehicle insurance coverage as required in North Carolina, you may never expect to be in a car accident, although accidents happen every day here in the Triad Region of N.C.  What's worse than being in a car accident is being in an accident where the other driver is at fault and he or she doesn't have insurance.  This may surprise you: according to the Insurance Information Institute (III), nearly 10% of North Carolina's drivers are driving without vehicle insurance.  

Required By Law

In answer to the question of whether or not you need uninsured motorist coverage (UM), the answer is "YES."  UM is required of all drivers in NC in the same minimum amounts as liability protection, which is also required:

• $30,000 bodily injury protection for one person per accident
• $60,000 bodily injury protection for all persons per accident
• $25,000 property damage per accident

How Much Is Enough?

If you're carrying the mere minimum coverage for either UM or your liability protection, consider what the real costs would be if you were involved in a serious auto accident, your fault or not, $25K may be enough to cover the repairs or replacement of a single vehicle, but maybe not.  Medical costs have shot through the roof in the past few years, including hospital and doctor's costs, not to mention long-term costs for disabilities resulting from a car crash.  There's also lost wages to consider.

Experts suggest that when purchasing your liability coverage and your uninsured motorist coverage that you increase the benefit amounts to several times the minimums required.  Any costs not covered by your uninsured motorists benefits may likely have to come out of your own pocket, although you may be able to claim against your base policy if you have collision protection or medical benefits protection.

When Does Uninsured Motorist Insurance Pay?

Uninsured motorist insurance typically covers the following:

• An accident that's caused by an uninsured driver
• An accident caused by a driver whose insurer has gone bankrupt
• An accident caused by a motorist whose insurance company denies liability
• An accident caused by a driver driving an uninsured vehicle despite having insurance himself

Besides the fact that uninsured motorist and underinsured motorist coverages are required by North Carolina state law, it would still be an important coverage to have in light of the fact that NC has so many uninsured motorists.

Does Business Equipment Insurance Cover Burst Pipes?

 

A good commercial property insurance policy can be comprised of many different types of insurance protection, many of which most businesses need.  Damage caused by leaking or burst water pipes is included in the coverage provided by many commercial property insurance policies, but check your policy to make sure.  Each business policy written is unique and available protections must be spelled out in the policy contract.

Business Owner Policy

A Business Owner Policy, or BOP, is a combination of insurance coverages providing protection for many of the liability and property risks a business owner faces, bundled together in one package.  While a BOP provides a bundle of basic insurance coverages most business owners need, it's sold at a discount from what the individual protections would normally cost. 

Typically, a BOP provides protection against losses stemming from:

• Property damage
• Liability
• Business Interruption

Businesses can also usually opt to add on additional coverages not provided by a basic policy.

Water Damage

While water damage from something like a burst pipe is likely covered by your commercial business property insurance policy, not all water damage to which your business may be subject is necessarily covered.  Flood damage, for example, is something that could possibly require coverage by a separate flood policy or special endorsement to your base policy.  It's also important to realize that if your water pipe bursts because your property was left unheated during a winter freeze your claim could be denied due to neglect.  Water damage caused by an overflowing sump pump will probably not be covered by the property damage portion of you policy.  Check the specifics of your policy.

Other Applicable Coverage

Several types of coverage may apply to damage caused by water from a burst water pipe.  If you have a great deal of expensive equipment used in your business and it gets damaged and requires repair or replacement, the costs may exceed the benefit limits on your property damage coverage.  Additional equipment coverage may be needed to ensure your full protection in the event that property or equipment damage is greater than your base policy can handle.

If water damage sustained requires you to shut down business operations or move them to a temporary location, business insurance can help cover loss of income because of business interruption.  If you're found liable by your landlord for damage done to his or her property a BOP can help there, too.