What is PLPD auto insurance coverage?
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Asked July 29, 2013
Public Liability and Property Damage, often referred to as PLPD, is the commercial auto insurance equivalent of Bodily Injury and Property Damage insurance for a private individual. Both policies provide the same type of coverage, paying for medical costs, damaged property, court costs, and at-fault judgments in covered incidents. The biggest difference between the two is that PLPD insures a much higher base risk, and is priced to meet the potential claims.
PLPD insurance may not be available in all areas. Some states use a no-fault method of handling car insurance where each person's insurance pays the initial claim. In these states, PLPD coverage has usually been replaced by a similar no fault or PIP insurance package. Check with your Department of Motor Vehicles to find out what type of insurance is required for your state.
Many times, when someone is injured by a commercial vehicle, their first thought is call a lawyer and try to get as much as possible out of the incident. This increases the risk of insuring a business vehicle, because a serious claim could amount to hundreds of thousands of dollars in real or fabricated costs. Having PLPD insurance means that the insurance company will take care of the claims, up to the limits of the policy.
PLPD insurance covers a higher risk potential, including the operation of the vehicle when any of your licensed employees are driving. However, the standard limits of the policy, as with a private car insurance policy, are often insufficient. Look at the risks involved, and the value of your business, and use those as guiding factors for increasing or decreasing your coverage to match your needs.
You may still need other types of commercial insurance. If the car is used for transporting people or merchandise, you may not be covered for injuries or losses unless you pick up rider policies specific to the use of the car. The exact insurance package you need to complement your PLPD coverage will depend on the nature of the business, how many vehicles you are using, and other company-related information.
Answered July 29, 2013 by Anonymous