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I insure a corporation owned by a husband. We list he and his wife as DOC via endorsement as they dont have a separate personal auto policy.

Recently, the wife started her own LLC and recently purchased a commercially titled vehicle which we added to the policy. We too, added DOC naming her and her husband as DOC via endorsement.

My question: Is one of these DOC endorsements redundant and unnecessary? If so, does it matter which is kept and which is removed? Or, do we need both?

Thank you for your feedback and wisdom!

-Matt

Having only one DOC should suffice. Which one doesn't really matter. However, as a potential E&O deterrent in case the one with the DOC should cancel in the future, having both could save the day as someone may not remember to add it to the other.

I highly recommend you remove the duplicate DOC coverage. Having it on two policies can create "Other Insurance" issues. You don't want two insurance companies battling over who is primary. Plus there is no need to charge your client twice for the coverage.

I think the DOC form - at least the carriers we use - automatically includes the spouse if the spouse is in the same household. So there's probably no need to list both name on the Husband's policy. If that's confirmed, I'd say only list Mr. on Mr.'s Corp policy, and list Mrs. on Mrs. LLC policy.

Thank you all for your feedback and input - it is appreciated.

If the vehicle is registered to the LLC, and not the corporation, you may have a problem. If there is no majority interest in both the corporation and LLC (i.e. wife owns 51% or more of both), then the insurance on the corporation may not extend to cover the LLC.

I would recommend asking the insurance company underwriter what they prefer in this situation. The company underwriter should understand their policy and procedures and advise you correctly, avoiding problems. Since every company tends to handle underwriting a bit different going directly to the source is my preferred method.

This client really needs a named non-owner personal auto policy.

gforaker wrote:This client really needs a named non-owner personal auto policy.

If they have DOC, why do they need a separate non-owned policy? Personal line non-owned policy typically has lower limits, and does not cover Comp. & Coll.