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February 2016 Archives

Do you need commercial auto insurance for your business?

If you own a car in Minnesota, you know that the state requires you to carry a certain amount of auto insurance in a number of categories. For example, each licensed vehicle must have liability insurance with at least a $30,000 limit for injuries to one person and a $60,000 limit for each incident. That policy must also include personal injury protection coverage, as well as underinsured and uninsured coverage; collision coverage and comprehensive coverage are both optional.

What is a 'reservation of rights'? concl.

Is it El Niño, or is it just that we had not noticed this before? Has ice fog been a problem for Minneapolis in other years? Either way, it has made morning treks to the transit station or from the parking lot a little nerve-racking. Ice fog, for anyone unfamiliar with the phenomenon, gives the air a slightly shimmery effect and, more importantly, coats sidewalks and road surfaces with a very thin but unbelievably treacherous layer of ice. The unwary can easily lose their footing and go down -- and, if it's your sidewalk, file a claim against your property insurance.

What is a 'reservation of rights'?

As we have said before, an insurance policy is a contract between the policyholder and the insurance company. At the center of the contract is a promise: The insurance company promises to defend and to indemnify the policyholder if there is a claim; in return, the policyholder promises first and foremost to pay the premiums on time. (The policyholder has other duties -- the duty to notify the insurer of a claim, the duty to cooperate with the claim processor, the duty to mitigate damages -- that we will take on in a future post.)