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Business Insurance Frequently Asked Questions

Q: Does my insurance policy include loss of rent?

A: Yes, if you have a Businessowners Policy form, loss of rent is automatically covered based on the actual loss up to 12 months.

Q: Can I suspend coverage on one of the autos on my business auto insurance policy during the winter months?

A: The Commercial Auto Lay-Up Endorsement allows for the lay-up of specified covered autos for a specified time period for a reduction in premiums. Please contact your Pekin Insurance agent for details on this endorsement.
You also may remove business auto insurance coverage completely for either physical damage or liability or both. If you do this, there is no coverage at all until the vehicle is added back on the policy.

Q: When will an audit on my business insurance policy be ordered?

A: The audit is ordered after the termination of the business insurance policy or at the end of the business insurance policy period, usually within 15 days of the expiration or termination.

Q: How can I get loss runs?

A: Contact your Pekin Insurance agent.

Q: How can I get business insurance for rented contractors’ equipment?

A: Pekin Insurance offers this coverage on our IMPAC Inland Marine Endorsement.

Q: Why do non-Pekin Insurance employees inspect commercial buildings?

A: Pekin Insurance contracts with outside inspection companies so we can provide loss control services to a larger percentage of our customers. Pekin Insurance believes loss control service helps limit or reduce claims. Claims are very expensive and inconvenient to our policyholders. Any claim that is prevented or reduced lessens the impact on rates paid by all of our policyholders.

Q: Why do you charge a premium for subcontractors?

A: Due to case law, the person hiring the subcontractor can be brought into a claim. Generally, he or she is brought into the claim based on a lack of supervision or care in hiring. Because of this, a charge is made for this extra exposure to claims.

Q: How long do I have to report a newly purchased vehicle that needs to be added to my commercial auto insurance policy?

A: New purchases that need to be added to your commercial auto insurance policy need to be reported within 30 days of purchase.

Q: Do I qualify for the Contractor’s Premium Adjustment Credit?

A: The credit application must be completed and returned to the National Council on Compensation Insurance. They determine whether you qualify and the applicable percentage credit. Pekin Insurance provides the application. Please contact your agent if you feel you qualify and would like to obtain an application.

Call Toll-Free 1-800-322-0160