Auto Insurance
Auto Liability Coverage
Auto liability coverage protects your personal assets when you or a household member causes an accident — paying for the other party's injuries, medical treatment, and property damage. For business owners with significant personal net worth, state minimum liability limits are dangerously inadequate.
Auto Insurance
What You Need to Know About Auto Liability Coverage
Bodily Injury Limits
Bodily injury liability is expressed as per-person/per-accident limits — commonly 100/300 (100k per person, 300k per accident) at a minimum for business owners. A serious accident with multiple injuries can easily exceed these amounts, leaving you personally liable for the difference.
Property Damage Liability
Covers damage you cause to other people's vehicles and property. With vehicle values increasing, property damage limits of $100,000 or more are appropriate for most business owners — state minimums of $25,000 are woefully inadequate for current vehicle replacement costs.
Umbrella Requirement
Personal umbrella policies require underlying auto liability to meet minimum thresholds — typically 250/500/250 or higher. Setting auto liability at the umbrella's required minimum ensures there's no gap between the auto policy's limit and where the umbrella picks up.