Radius Of Operation

Radius of Operation is a term used in commercial insurance. When the underwriter for the insurance company is determining how to class a vehicle then this is an important part of the equation.

You determine the radius of operation as the maximum distance traveled one way, as the crow flies, by an insured, from the point of garaging the vehicle to the point of delivery.

It is important that you declare fully the radius of your operation. If you exceed the limit on a rare occasion then the underwriter may give you a concession on the rating because this is not a common activity. If you have an accident and you are outside the stated radius then you need to have this notation on the insurance company records.

Take control of your insurance. Talk frankly with your agent or broker. Do not be afraid to ask questions.