What's the State of Your Union?

What's the State of Your Union?  No, not your marriage union.  Think of it this way.  The State of The Union address is an annual opportunity to learn the condition of the Nation and hear recommendations for change.  Likewise, your financial protection deserves a State of Your Union discussion with your insurance agent.

When was the last time you had a heart-to-heart with your agent to discuss what's going on with you and what's going on in the insurance world?  So many life changes can impact your insurance.  For example:

• Your ambitious son just took a job delivering pizzas - in one of your cars
• You just invested $70,000 in a room addition
• Your 15 year old granddaughter has moved in with you
• You are planning a Spring Training visit to Arizona where you will rent a car
• Your family has adopted a new family member - Fido the Pit Bull
• Your Valentine has purchased a $10,000 diamond ring 

In addition, the insurance world is transforming with options on coverage, rates and communication.  For example:

• Equipment Breakdown coverage
• Rate reductions based on home fire and safety protections installed
• Apps for everything from home inventories to what to do after a claim

Be aware that everyday life situations can impact your insurance.  Take a few minutes to schedule an appointment with your Trusted Choice Agent to discuss your insurance condition and hear recommendations for change.  The State of Your Union is just as important as the State of our country.

Pizza Delivery - No Coverage

There is no way to sugar coat this one, folks.  Better to find this out before than after your 17-year old son causes an accident while delivering pizzas in your vehicle.  

The standard Personal Auto policy excludes liability "arising out of the ownership or operation of a vehicle while it is being used as a public or livery conveyance."

The definition of "Public or Livery conveyance" is: "The transporting of people and/or goods for hire, such as by a taxi service, motor carrier, or a delivery service."

Therefore, no coverage.  Nothing.  Zero.  Zilch.

Some individuals may think that since this type of food delivery is a minimal "sideline business", there may be coverage.  However, the policy specifically excludes all liability coverage resulting from the ownership or operation of a vehicle while it is being used to transport goods for hire.

Just last month, a Louisville, Kentucky family found themselves uninsured when Dad took a second job to deliver pizzas.  No coverage.

This delivery exclusion applies not only to pizza delivery but to newspaper delivery, home pharmacy deliveries - anytime you are transporting for hire.

As the risk manager of your household, there are a few solutions.  

• One technique of risk management is avoidance.  Sorry, Junior,  you can't take the job.  
• Another risk management technique is transfer.  Ask the pizza business owner to provide insurance or, better yet, provide the delivery vehicle.   
• A less popular risk management approach is to accept the risk of an accident occurring and budget accordingly.  (ouch!)

Discuss all personal insurance situations with your own Trusted Choice Agent during your annual review.  As issues arise during the year, feel free to contact your agent as part of your personal risk management team.  

The risk management technique of retention can be very costly when it comes to an auto liability claim.  Is your pocketbook able to deliver?