Financial Services Industry
Industry: Email Alert RSS FeedFederal Paper Box Company Hears About Non-Ownership Liability Insurance
Rough Notes, Sep 2005 by Tibbets, Frank D
Mr. Tibbets, in interesting dialogue form, tells bow Agent Bill Howe presents Non-Ownership Automobile Liability insurance to a valued client who has other insurance with his agency. There are a lot of such "Mr. Smiths" on many agents' books who ought to be receiving similar treatment.
(ProQuest Information and Learning: ... denotes text stops here in original.)
"OPERATOR, please get Mr. Smith, vice-president of the Federal Paper Box Company, on the phone," said Bill Howe, insurance agent. A few moments later the following conversation ensued:
"Hello, Joe, this is Bill Howe."
"Yes, Bill, what's on your mind this morning?"
Most RecentFinancial Services Articles
"I want to know when you can spare me a few minutes; I'd like to talk to you about Automobile insurance for your company."
"Automobile insurance? What do you mean?-you know that we do not own any cars."
"Yes, I know, that's just the point and is probably why we have both overlooked the fact that you need Automobile insurance protection."
"Well it sounds like a riddle to me."
"The idea is this, Joe, you require your salesmen to use their own cars in your business. While these cars are being used for your business there is a definite liability on the part of the Federal Paper Box Company. There has been designed a form of insurance to protect you against this liability and that is why I want to talk to you."
"It sounds interesting, Bill, come over any time this afternoon."
"All right," answered Bill. "I'll see you then," and hung up.
"You see," said Bill, turning to his partner, "that Federal account means a great deal to us. We have the Compensation and the Public Liability on their plants as well as the Engine, Machinery and Fire insurance and I don't want any other agent to come along and point out to Joe Smith that we are leaving a gap in his insurance coverage by not selling him Non-Ownership Auto Liability protection. He leaves his insurance needs pretty much to us and it is our duty to advise him, at least, of the kinds of coverage available and necessary. I am combing our present list of Compensation policyholders and fleet schedule risks with the one idea in mind of bringing to their attention the need for Non-Ownership Auto coverage."
That Afternoon-the Interview
"Well, here I am, Joe, and I can see you're busy as usual, so I'll try to make it snappy. You depend on me to bring to your attention the kinds of insurance you need and that is why I want you to know about Non-Ownership Automobile insurance."
"So that's what you call it," said joe.
"Yes, it used to be called 'Auto Contingent insurance' but, inasmuch as there is nothing contingent about it, the new term was adopted. As I mentioned on the 'phone this morning, your salesmen, while using their cars in your business, are acting as your agents and accidents which they cause, while so engaged, may very properly be laid at your door. You know very well that it would be an easy matter for a clever attorney, for the injured, to uncover the existence of agency in such a case and the next step would be to bring the claim against the salesman and your concern jointly."
"Yes, Bill, but I have always understood that the salesman's Auto policy protected us in addition to the salesman himself."
"It does if he has insurance and if his policy has the so-called omnibus coverage clause, but do you know if all your salesmen have insurance and, if they do, whether or not it is carried in substantial companies and, furthermore, if the limits are sufficient to take care of a substantial verdict?"
"Well-er, no, and it would involve considerable time and expense to ascer; tain that information, especially where our sales force is growing and changr ing."
"That's just the idea. Now with this kind of insurance, you would not nee4 to know or care whether your salesman had the right kind of insurance or not."
"What is the cost of this Non-Ownership Automobile protection?"
"To answer that I will have to get the facts as to the number and location of your sales force and the number of employes in your office and plants."
"How do our office or plant employes enter into it?"
"Just this way, this protection should be blanket. We do not want any loop-holes. It is just possible that some plant employe or office employe might use his car for an errand for the company...
As Recounted by FRANK D. TIBBETS, Superintendent Automobile Department of Employers' Liability Assur. Corp., Ltd.
Brought to you by CBS MoneyWatch.com
- 10 Best Places to Retire
- Companies with the Best 401(k) Plans
- Most Important Document for Your Heirs? It's Not Your Will
- Video: Should You Expect to Retire Rich?
- Over 50? Here's How to Get (and Keep) a Great Job
Most Recent Business Articles
- Your feedback
- Why fly solo when an executive assistant can accelerate your CLNC® business?
- The CLNC® mentors held the key to my first case and to my CLNC® success
- Atlanta CLNC® 6-day certification seminar photo galleryplus sign up today for spring 2009 to save $100.00
- Announcing the 2009 NACLNC® conference keynote speaker, Stedman Graham: move like a maverick for breakaway CLNC® success at the 2009 NACLNC® conference
Most Recent Business Publications
Most Popular Business Articles
- Using object-oriented analysis and design over traditional structured analysis and design
- Big Fish Games Migrates Upstream to Fisher Plaza; High Growth Online Gaming Firm Vaults Fisher Plaza Occupancy Rate Above 90%
- Top of the line: some of the world's most well-respected doctors practice in South Florida. A guide to choosing the best physician specialists - Top Doctors in South Florida
- Sand filter basics: high-rate sand filters can be confusing for those new to the business. Understanding valve modes is the key
- BEHR Paints Introduces a Colorful New Way to Paint and Prime All in One with BEHR Premium Plus Ultra™ Interior

