Employee Fault Auto Accident

Patrol officer of dads security company rear ended a trash truck. Thought insurance was taking care of everything. Wrong! Turns out insurance for patrol unit was classified as personal liability instead of commercial liability. Agent received wrong information and wrote the policy with company who does not provide commercial auto insurance. This all took place within 1 month of the purchase of patrol unit. Trash truck driver has attorney and is seeking a sum not yet known? Help? How do we protect the business. Do we have a case against the employee, will the insurance cover anything? The business is a sole proprietorship, family run. In business 25 years. Are we doomed to lose everything? Should we consider a family trust? Really need some advice?

Security Assistant

You really need a lawyer. Hire one soon & don't talk to the other side's attorney at all until you have a lawyer. This is exactly why you incorporate a business. Although it won't help you for this case, incorporate ASAP, just in case there's another accident.

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This is not legal advice and you are not my client. Double check everything with your own attorney and your state's laws.

couple of thoughts:

was the new car a replacement vehicle? former coverage, if there, may apply.

second, how is that the agent made the error? was it your screw-up or the agent's? See if the matter can be corrected. If your premiums were paid, it may just be a clerical change and everything is covered.