The Ultimate Guide To Monoline Auto Insurance

Monoline auto insurance is a specialized insurance policy that covers the specific needs of businesses that rely on vehicles for their operations. It is a type of monoline insurance, which provides coverage for a risk that is typically included under a package policy or a business owners' policy (BOP) but is excluded for a certain reason. In the case of monoline auto insurance, it covers businesses with vehicle fleets that support business activities, such as selling and distributing products, performing contracting operations, and providing services to customers. This type of insurance is designed to meet the unique needs of these businesses, with features such as liability coverage, physical damage coverage, uninsured motorist coverage, and more.

Monoline auto insurance covers business vehicles

Monoline auto insurance is a specialised insurance policy that covers the specific needs of businesses that rely on vehicles for their operations. It is designed for businesses with fleets of vehicles ranging from private passenger cars to extra-heavy truck tractors.

Monoline auto insurance is a good option for businesses that cannot get everything they need from a standard package or business owner policy (BOP). It can be customised to cover unique business needs that fall outside the scope of a typical insurance policy. For example, a business may require coverage for a high number of vehicles, or for vehicles that are considered high-risk, such as classic or collectible cars.

Key features of monoline auto insurance include liability coverage, physical damage coverage, uninsured/underinsured motorist coverage, medical payments coverage, comprehensive coverage, and collision coverage. This type of insurance can also include additional coverage, such as hired auto physical damage coverage, accidental airbag deployment coverage, and vehicle wrap coverage.

Monoline auto insurance is available across 25+ specialised industry programs, including construction, agriculture, service, trade, and utility contractors. It is a good option for businesses that want to ensure their vehicles are adequately covered, and it can provide greater flexibility and competitive pricing compared to standard package policies.

It is a single-type insurance policy

Monoline auto insurance is a single-type insurance policy. This means that it covers only one type of insurance. In the context of auto insurance, monoline insurance is a specialised policy that caters to the specific needs of businesses that rely on vehicles for their operations. This type of insurance is designed for businesses rather than individuals, with eligible accounts being automobile fleets that support business activities.

Monoline insurance is also referred to as stand-alone insurance. It provides coverage for a risk that is typically included under a package policy or a business owners' policy (BOP) but is excluded for a certain reason. For instance, if an underwriter excludes product liability from a package policy, the policyholder would need to take out a monoline product liability policy.

Monoline insurance can also refer to insurance policies that are not typically part of a package policy but are offered with no "supporting line" by the same insurance carrier. For example, a commercial umbrella liability policy is not usually bundled with other coverages. However, if the insurance company that underwrites the general liability is different from the one that underwrites the excess general liability, it would be considered a monoline policy.

Monoline insurance is often chosen by businesses that cannot find what they need in a standard package or BOP. It allows them to fill in coverage gaps and obtain the necessary coverage for large organisations. It is also beneficial for unique businesses that do not fit the statistical averages used by traditional underwriters. Monoline insurance provides more specialised coverage and greater flexibility to meet the specific needs of the insured.

However, one of the main disadvantages of monoline insurance is that it is usually more expensive than package policies. Additionally, claims handling can be more complicated when multiple insurance companies are involved.

It is a stand-alone insurance policy

Monoline auto insurance is a stand-alone insurance policy. This means that it is a single insurance policy that covers a specific risk or cost. Stand-alone insurance is the opposite of a broad insurance policy that covers multiple risks in different scenarios.

A monoline insurance policy is purchased to cover a risk that is typically included under a package policy or business owners' policy (BOP) but has been excluded for a certain reason. For example, if an underwriter excludes product liability from a package policy, the policyholder would need to purchase a monoline product liability policy to cover that specific risk.

Monoline insurance policies are often purchased by businesses that cannot find the coverage they need within a standard package or BOP. This may be because they are a large organisation or because they are a unique business with specialised needs. For example, a business that frequently sends its workers to other cities may choose to purchase group travel insurance as a stand-alone policy to cover the cost of flight and hotel cancellations.

Stand-alone insurance policies can also be purchased by individuals to augment an existing insurance policy by adding coverage for additional risks. For example, a homeowner may purchase a stand-alone earthquake or flood insurance policy to supplement their standard homeowners' insurance policy, which may not cover these specific perils.

The decision to purchase a stand-alone insurance policy depends on the individual's or business's unique needs and the cost of the policy compared to the potential loss without it. Stand-alone policies are typically more expensive than package policies, but they offer more specialised coverage and can be customised to meet specific needs.

It is a type of commercial auto insurance

Monoline auto insurance is a type of commercial auto insurance that provides coverage for businesses with unique needs that fall outside of standard insurance packages. It is designed for businesses that require specialised insurance for their vehicles, which can range from private passenger cars to extra-heavy truck tractors.

A monoline insurance policy, also known as a stand-alone policy, fills in the gaps in coverage that are typically excluded from standard package policies or business owner policies (BOP). For instance, a business may require insurance for a high-risk activity that is not covered by their general liability insurance. In this case, they would need to purchase a monoline policy to ensure they are adequately covered for that specific risk.

Monoline auto insurance is particularly relevant for large organisations that have unique insurance needs that cannot be met by standard package policies. By purchasing monoline insurance, businesses can ensure they have the right level of coverage for their specific needs, even if those needs are specialised or high-risk.

There are several advantages to monoline insurance policies. They allow businesses to fill in coverage gaps, ensuring they are protected against specific risks that may not be covered by standard policies. Monoline policies also provide greater flexibility and customisation, which is particularly important for large organisations or businesses with unique operations. Monoline underwriters often have specialist knowledge in their field, enabling them to better assess and manage the unique risks of their clients.

However, there are also some disadvantages to monoline insurance. It can be more expensive than standard package policies, as the risk is not diversified across multiple coverage types. Claims handling can also be more complicated when multiple insurance companies are involved, and there may be potential issues with overlapping coverage.

It is available for a wide range of classes

Monoline commercial auto insurance is available for a wide range of classes. GMI Insurance's Monoline Business Auto Program, for example, targets contractors, artisans, building supply dealers, system installers, retailers, manufacturers, wholesale distributors, and more. They offer insurance for vehicles ranging from private passenger cars to extra-heavy truck tractors.

Specialized insurance programs are available with monoline commercial auto insurance across 25+ industry programs. These include arborist and tree services, landscaping and lawn care, paving and road contractors, and utility line contractors.

The NIP Group's Monoline Commercial Auto Insurance serves over 50 classes within the construction and agricultural sectors, from small to large fleets. They also offer insurance for a range of vehicle types, from pickup trucks to high-value bucket and crane trucks.

Other companies that offer monoline commercial auto insurance include Western Skies MGA, LLC, Treaty Oak General Agency, and ANCR Risk Group, Inc.

Frequently asked questions