Hawaii Driving School Insurance Policy Information
Hawaii Driving School Insurance. Driving schools play an absolutely crucial part in equipping learners with the knowledge and skills they will need to become competent and safe drivers.
Driving education consists of two portions. The theoretical part of learning to drive may take place in a classroom at the driving school, or even online.
The practical portion will most excite students who are learning to drive, however - and here, driving schools typically employ vehicles that are equipped with dual controls to ensure everyone's safety as students take their first steps into the world of driving on the same roads experienced drivers use.
Automobile driving schools teach students how to safely operate a motor vehicle and meet their state's licensing requirements. Students must complete a certain number of hours of classroom instruction, which may include computer simulation and testing, plus a certain number of hours actually operating an automobile under the supervision of the instructor.
Some schools offer the classroom instruction online at the student's convenience, followed by instructor-supervised on-the-road training.
Automobile driving schools work with teenagers and adults attempting to obtain an operator's license for the first time, licensed individuals who wish to improve their driving skills, and individuals who have lost their driving privileges and must pass a state-approved course in order to regain them.
Owning and operating a driving school can be highly rewarding, as well successful and profitable. As new generations will continue to rely on cars and the skills to drive them, this sector is also fairly stable.
Like all other branches of commerce, however, driving schools face risks. What types of Hawaii driving school insurance are need to protect themselves in the event that they encounter unforeseen, catastrophic, circumstances? To find out more, read on.
Hawaii driving school insurance protects your driving instruction business from lawsuits with rates as low as $37/mo. Get a fast quote and your certificate of insurance now.
Why Do HI Driving Schools Need Insurance?
While you will, as the owner of a driving school, do everything in your power to ensure that the driver's ed you provide is comprehensive and responsible while simultaneously minimizing your risks, the harsh reality is that you never know when you will be struck by a major peril.
Driving schools operate in the shadow of the same hazards all businesses face, as well as needing to consider some industry-specific risks.
A road traffic accident could take place while an instructor is giving a driving lesson, for example, a scenario that can end with devastating human as well as financial losses regardless of who was at fault. Even when nobody is hurt, small accidents will cause a driving school to incur significant repair costs.
In terms of liability, HI driving schools also need to have the possibility that a driving instructor will be accused of negligent or harmful conduct in mind. This can happen even if the instructor did nothing wrong.
Alongside these risks that are unique to driving schools, these businesses may be impacted by acts of nature (hurricanes, wildfires, hailstorms, and so on), theft, vandalism, or accidents, such as fires, that impact their commercial premises.
Each of these perils has the potential to severely damage your financial health - and that is why insurance is so crucial. By investing in a comprehensive Hawaii driving school insurance plan, you will know that even truly ruinous events do not need to spell the end for your driving school.
What Type Of Insurance Do Hawaii Driving Schools Need?
Your personal path to full coverage may be just as challenging to navigate as the road is to learning drivers. Numerous factors, from your location to the size and value of your fleet and your number of employees, will ultimately determine what amounts to a comprehensive insurance plan for your HI driving school.
To make the process easier and to make sure you miss nothing, it is vital to consult a commercial insurance broker who is familiar with your industry. With that in mind, among the key forms of Hawaii driving school insurance needed are:
- Commercial Property - The heart of your business may lie on the road, but your commercial building may still be impacted by perils ranging from burglary to natural disasters - which can cause truly massive damage that leads to enormous repair and replacement costs. Commercial property insurance covers your building and the assets within when disaster strikes.
- Commercial General Liability - Nearly all businesses need commercial general liability insurance, which offers protection in the event that someone is injured on your premises or your company's activities damage third party property. In case of lawsuits, this Hawaii driving school insurance covers your attorney fees and settlement expenses.
- Commercial Auto - This kind of insurance covers a variety of liability risks relating to your commercial vehicles; personal injury protection, uninsured motorist coverage, and medical payments, for example. It is among the most vital forms of coverage for driving schools.
- Workers' Compensation - Should an employee sustain a work-related injury, workers comp pays their medical bills as well as covering any wages they lose if they require time off to recuperate.
Driving instructors looking for the best insurance to safeguard their business from the impact of major perils should be aware that they may also need other kinds of Hawaii driving school insurance coverage. For further information, talk to a commercial insurance broker.
HI Driving School's Risks & Exposures
Premises liability exposures are moderate due to access by students and other visitors. To reduce the potential for slips and falls, floor coverings must be in good condition. Steps and uneven floor surfaces should be prominently marked. Because evening classes are offered, there should be sufficient exits with backup lighting systems in case of power failure.
Parking lots and sidewalks should be kept free of ice and snow. All instructors should meet all state regulations. If the state requires certifications and/continuing education, a monitoring procedure should be in place. If contract instructors are used, a written contract should clearly detail their responsibilities and expectations.
Instructors under contract should be monitored in the same way as employee instructors. Personal injury exposures include alleged assault and battery, discrimination, and invasion of privacy.
Abuse and molestation exposures are high when instructors work with minors. No coverage is available to the abuser. While there is some coverage available in the standard market for the school where the abuse or molestation takes place, it is very restricted.
The school should purchase broader coverage from specialized markets. The school must take all care possible to protect students from predatory adults, using background checks, monitoring and supervision, and reporting all allegations of abuse to the proper authorities.
Workers compensation exposures can be high from the use of automobiles by students and altercations with abusive clients. There should be dual controls in student-driven vehicles so instructors can quickly intervene in an unsafe driving situation.
The school should develop and implement measures to maintain contact with its instructors while they are providing instruction in vehicles on the road. There should be written procedures to follow in the event of an accident. Employees should be trained to handle unruly clients.
Property exposures are light. Ignition sources are generally limited to electrical wiring, heating and air conditioning systems. All wiring must be well maintained and up to code. If automobiles are garaged and/or serviced on premises, the exposure increases due to flammable gasoline and oil which should be stored away from combustibles.
The building may be damaged by vehicle collision as students may be inexperienced in controlling an automobile. Business income may be needed after a loss if backup facilities are not readily available.
Crime exposures are from employee dishonesty and theft of money and securities. Background checks should be conducted on any employee handling money. If cash is received for tuition, receipts should be provided.
Bank deposits should be made on a timely basis to prevent the buildup of cash on premises. Duties must be separated and books must be audited both internally and externally on at least an annual basis.
Inland marine exposures are from accounts receivable for payments from students, computers, mobile equipment, and valuable papers and records for students' information. All records should be duplicated and stored off-site. Mobile property may be carried in instructors' vehicles or taken to exhibition locations.
Commercial auto exposures are extensive as vehicles are used by inexperienced drivers. All vehicles used for instruction should have dual controls and be clearly marked as drivers' education vehicles to alert other drivers on the road. All instructors must have the appropriate license and acceptable MVRs. All vehicles must be well maintained with records kept at a central location.
Hawaii Driving School Insurance - The Bottom Line
To learn more about the specific types of Hawaii driving school insurance policies you'll need, and how much coverage you should have and the premiums, consult with a reputable broker that is experienced in commercial insurance.
Hawaii Economic Data, Regulations And Limits On Commercial Insurance
Location is one of the most vital factors that prospective business owners need to take into consideration when they are thinking about establishing an operation. You can have the best possible products and offer the most exceptional services, but if the location doesn't offer a market that can benefit from those goods and services, your business will have difficulty thriving.
As such, if you are an entrepreneur who has set your sights on Hawaii for the headquarters of your business or a new division of an already existing corporation, it's a good idea to familiarize yourself with the state's economic data. It's also important to understand what type of commercial insurance you will need to invest in to protect yourself, your employees, your vendors, and the clients you serve.
Below, we provide a brief overview of important economic data and the commercial insurance requirements for business owners in the Aloha State.
Economic Trends For Business Owners In Hawaii
A state's unemployment rate is a good indicator of the overall economy of the region. It indicates that there are enough jobs available to support the economy, which is a direct reflection of the success of businesses in the state. As of 2019, the Bureau of Labor Statistics indicated that the unemployment rate in Hawaii was 2.6%, 0.8% lower than the national average of 3.4% from the same timeframe. This rate has also decreased throughout 2019, as it was 2.8% in July of 2019.
As with most states, the best locations to start a business in the state of Hawaii include urban areas and the suburban regions that surround them. The top cities for business owners in HI include:
- Pearl City
While several industries do well in Hawaii, certain sectors thrive. Tourism has long been the leading industry in the state, as people from around the globe flock to Hawaii each year.
Agriculture is also a booming industry here; the state is the second largest producer of sugar can in the U.S. Defense is also a key sector here, as all branches off the armed forces have bases located in the state. Another industry that also thrives here is manufacturing; specifically the manufacturing of cotton-based goods, such as clothing.
Commercial Insurance Requirements In Hawaii
The Hawaii Department of Commerce and Consumer Affairs regulates insurance in HI. Hawaii mandates very few forms of insurance coverage by law. They enforce worker's compensation.
Hawaii requires you to have worker's compensation insurance if you hire even one employee on a regular basis. This includes part-time employees, family members, minors, and immigrant employees. It is not required for independent contractors or domestic employees, though you should check to make sure any contractors you have are true contractors, and not employees.
Hawaii also requires all business-owned vehicles to be covered by commercial auto insurance. Other types of business insurance that business owners should carry depend on the specific industry.
Additional Resources For Education, Colleges, Universities & Schools Insurance
Learn about small business commercial insurance for educators that helps protecting your professional reputation and other legal liabilities arising from your educational services.
- Art School
- Beauty School
- Charter School
- Chiropractic Schools
- Colleges, Universities & Professional Schools
- Driving Schools
- Educational Services
- Language School
- Music Schools
- Private Schools
- Real Estate School
The exposures of one individual educational institution may be totally different from those of another. Because of this, comprehensive surveys of each facility are needed to accurately determine the proper insurance program needed by each.
While the exposures may be significantly different, they have the common component of educating a student and providing faculty that is competent and facilities that are safe for learning.
Many of these institutions have a number of buildings, extensive grounds, and expensive equipment. Comprehensive property and liability insurance is crucial, as is protection and coverage for tuition income, athletic events, teachers’ liability and many other exposures.
Educators' Legal Liability (ELL) coverage provided by insurers may have significant differences. It is important to compare what is available to meet the exposures and financial needs of a given educational institution or school district. Different ELL forms may even have substantially different insuring agreements. There are three main types of insuring agremeements in ELL policies:
Insuring Agreement A: The language in this agreement refers to coverage being provided contingent on receiving the policy premium. It states that coverage is subject to all relevant policy provisions. The carrier also states that the policy issuance is a result of completely relying on the accuracy of the information provided by the applicant/insured. This agreement refers to a Self Insured Retention .
Insuring Agreement B: This company's agreement is worded similarly to the language found in most standard commercial policies. It states that the company will pay on behalf of an insured that faces an allegation of performing a wrongful act. It also states that it will not respond to acts that occur before either the policy's effective date or the applicable retroactive date.
Insuring Agreement C: The language in this carrier's agreement is more specific. It makes reference to paying on behalf of an insured due to liability involving eligible, education operations acts. It also contains wording that reflects its claims-made basis of coverage.
Minimum recommended small business insurance coverage: Building, Business Personal Property, Business Income and Extra Expense, Employee Dishonesty, Money and Securities, Accounts Receivable, Commercial Articles Floater, Computers, Valuable Papers and Records, General Liability, Directors and Officers, Employee Benefits, Professional, Umbrella, Business Auto Liability and Physical Damage, Hired and Nonownd Auto & Workers Compensation.
Other commercial insurance policies to consider: Earthquake, Equipment Breakdown, Flood, Spoilage, Computer Fraud, Extortion, Animal Floater, Contractors' Equipment, Fine Arts, Musical Instruments, Theatrical Floater, Cyber Liability, Employment-related Practices, Stop Gap Liability and Active Shooter.
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