LLC Owned Property

[Champe]

What is the name of your state (only U.S. law)? NJ
Hello,
I am currently updating insurance coverage for properties owned/controlled by my employer. The family home and a second residence are "owned" by two separate LLCs. The shareholder positions in the LLCs are the same, and consist of a small percentage owned by each parent, with much larger shares owned by dependents.

The insurance broker has had the new policies on these properties issued naming my employer and spouse as the primary insured. When the broker was made aware that the property ownership was with the LLCs, his solutioin is to add the LLCs as additional insureds.

Is this correct? Should the policies be re-issued with the LLCs as primary insureds? And if so, should there be a separate policy for personal property owned by my employer and his family?

Thanks in advance for any assistance!

 

[moburkes]

What is the name of your state (only U.S. law)? NJ
Hello,
I am currently updating insurance coverage for properties owned/controlled by my employer. The family home and a second residence are "owned" by two separate LLCs. The shareholder positions in the LLCs are the same, and consist of a small percentage owned by each parent, with much larger shares owned by dependents.

The insurance broker has had the new policies on these properties issued naming my employer and spouse as the primary insured. When the broker was made aware that the property ownership was with the LLCs, his solutioin is to add the LLCs as additional insureds.

Is this correct? Should the policies be re-issued with the LLCs as primary insureds? And if so, should there be a separate policy for personal property owned by my employer and his family?

Thanks in advance for any assistance!

I'm not sure that this is correct. Every policy that I've written for LLCs was a commercail policy, not a personal policy. What your employer needs to do is contact customer service and explain that the home is owned by an LLC and get their response.

 

[Champe]

Thank you for your reply. We are not working directly with the insurance provider, but instead are working through a broker. The broker seems unsure on this issue, which is why I have asked for a advice frm this forum.

Seems logical to me as well that the LLC should be the primary insured. Our broker seems to think we'll need to go to Lloyds of London for a commercial policy. My feeling is that we probably don't need to go quite so far.

Any other advice or comments?

Thank you again for your help1

 

[HomeGuru]

Thank you for your reply. We are not working directly with the insurance provider, but instead are working through a broker. The broker seems unsure on this issue, which is why I have asked for a advice frm this forum.

Seems logical to me as well that the LLC should be the primary insured. Our broker seems to think we'll need to go to Lloyds of London for a commercial policy. My feeling is that we probably don't need to go quite so far.

Any other advice or comments?

Thank you again for your help1

**A: is the broker an idiot or what?

 

[moburkes]

Why do you say that HG? Curious...