Common sense ain't common. - Will Roger
When a claims adjuster begins working on a new claim the first thing they will determine is who is designated as a named insured on the policy. This is true for all policyholders whether you are an individual or a business owner because if you were not a named insured on a policy at the time of loss, there is a good chance that your claim will not be covered!
The following scenario is something we frequently see with business auto insurance clients: A small business owner purchases a vehicle in their personal name but decides to insure it through their business (S Corp., C Corp., LLC or Partnership). If a claim occurs it will not be paid because the corporation, LLC or partnership does not own the vehicle and the individual's name that appears on the title is not a named insured on the policy.
Another Common problem is when a sole proprietor forms an LLC for his existing business and does not notify his agent of the change. If a claim occurs and the LLC is not named on the policy, there is no coverage.
When reviewing your insurance policy, pay careful attention to the named insured. Should the name on your property deed, vehicle registration or Federal Tax Identification Number not match your policy notify your Agent immediately.