We come to rely on our machines – so much so, that we take them for granted, and when they wear out, malfunction, or just plain quit, our reaction can be surprise, anger, or even despair.
Imagine having a vehicle – a truck or car – serving as your business’ sole lifeline to your enterprise. Making customer deliveries, transporting products as part of the manufacturing process, making sales calls. Everything depends on that vehicle working reliably and safely, every day. Then, suddenly, it’s out of service.
Whether for days, weeks, months, or permanently, the loss of that vehicle means loss of your income. That’s where loss-of-use coverage comes into play.
Loss-of-use coverage essentially provides reimbursement if a vehicle is out of commission while undergoing repairs after an incident. This coverage is not included in policies by default, such as liability coverage. A loss-of-use claim follows the original accident claim, meaning that your policy would pay for substitute transportation costs. Insurers usually set their own coverage limits by either capping the number of days or providing a per-diem amount for reimbursements.
The terms of a loss-of-use policy can be tricky. It’s one thing to recover the cost of renting a replacement vehicle. It’s another to recover lost income. If your vehicle is your lifeline to making a living, it’s worth checking into what a loss-of-use policy can do for your business.
The professionals at The Reschini Group can help. Contact them today.
Copyright 2021 The Reschini Group
The Reschini Group provides these updates for information only, and does not provide legal advice. To make decisions regarding insurance matters, please consult directly with a licensed insurance professional or firm.
Source: https://www.thezebra.com/auto-insurance/insurance-guide/what-is-loss-of-use-coverage/