Are you a business owner who uses a company vehicle or personal vehicle in order to complete essential work-related functions? Or do you have employees who drive for you, whether making deliveries, shopping, or driving on the job for other reasons?
If so, it’s vital that you have a commercial auto insurance policy in place. If not, and an accident happens while you or an employee is on the job, it could be disastrous.
A personal auto policy may cover some of the costs associated with an accident while on the job. But commercial insurance needs to be in place for when damages exceed the limits of a personal policy. This is vital for protecting business assets, preventing lawsuits, and other liabilities.
Wondering why you should invest in commercial auto coverage? Want to know how it can safeguard your business? Keep reading to find out.
What Is Commercial Auto Insurance?
All drivers, whether driving for personal or business-related use, are required by law to have personal auto insurance. If you or your employees are in an accident while working, the personal policy may be able to cover damages.
However, individual auto insurance is limited based on vehicle type and usage. So personal auto insurance doesn’t cover everything.
Because your company, your reputation, and your business assets are on the line, you need to have commercial auto insurance. For one, a commercial policy may be the only available policy that can insure specific commercial vehicles. You wouldn’t want to pay out of pocket for damaged or stolen vehicles.
Commercial auto insurance can also protect your employees when they are driving on the job. And commercial auto coverage typically provides higher limits than a personal auto policy. These are in place to truly protect your business from all types of liabilities. And when you have multiple people driving on your behalf, your exposure to different liabilities greatly increases.
While you may have other commercial insurance policies in place, such as a Business Owner’s Policy, they typically do not include commercial auto coverage. You’ll need to purchase a dedicated auto policy to ensure proper coverage.
Benefits of Commercial Auto Insurance
While a commercial policy and a personal policy are similar, there are specific benefits that commercial auto insurance contains. Here are just a few important reasons to obtain a commercial policy right away.
1. Multiple Coverages
The biggest benefit of a commercial auto policy is the many different coverages included. Here’s what you can expect or ask your insurance agent to include.
Bodily Injury Liability Coverage
If you or one of your employees causes an accident, the injured party can hold you accountable. Bodily injury liability can cover the costs associated with these injuries.
Property Damage Liability Coverage
It happens to most commercial drivers at some point. If one of your vehicles causes damages to property, such as other vehicles, buildings, landscaping, or so forth, property damage liability can help.
Hint; many property damage accidents are the result of reversing. Train your team to limit or avoid reversing, especially when driving with limited visibility.
If you are in any type of accident, there’s a good chance that your company vehicle sustained damage in some way. Collision coverage will pay to have these damages repaired.
Medical Payments, No-Fault, or Personal Injury Coverage
If anyone inside your vehicle during an accident is injured, whether the driver or passengers, this coverage can pay for the associated medical bills. And that’s regardless of who is at fault in the accident.
Comprehensive Physical Damage Coverage
This coverage protects your vehicle from damages not involving an accident. This includes natural disasters such as floods, fire, or hail. Incidents involving criminal activity, such as theft or vandalism would also be covered.
Uninsured Motorist Coverage
Typically, whoever causes an accident is held at fault and is required to pay for the damages, either out of pocket or through their insurance provider. Unfortunately, many people drive on the road with no insurance in place. Even worse, you may experience a hit and run, where the car that hits you flees the scene.
If that’s the case, there isn’t anyone left to pay for the damages sustained. Uninsured motorist coverage within your commercial auto policy will protect you in these all too common incidents.
2. Higher Limits
Aside from the varying coverages offered, the limits offered by commercial policies are often much higher than personal policies. When driving for commercial purposes, there is a greater chance of experiencing a lawsuit.
Victims may pursue a lawsuit if they know there is a company behind the accident that can lead to a larger settlement. The higher policy limits are aimed at keeping your business and assets safe, and to prevent or help navigate through lawsuits. Lawsuits can get expensive fast when you factor in attorney fees on top of damages and medical bills.
3. Protect Employees
One of the biggest benefits of a commercial auto policy is the protection available for your team members. If they are driving a company-provided vehicle, they’ll need to be covered by a commercial policy.
But what if they are driving their personal vehicle? If driving a personal vehicle for work, and they experience an accident, they would file a claim as normal. There’s a chance that their personal coverage could cover all damages.
However, if the damages are higher than the limits of their policy, the associated costs would fall onto you, since they were driving for work. Having a commercial auto policy in place would cover these costs in those instances.
4. Protect Commercial Equipment
If your company is outfitted with business-related equipment, those too are in danger of being damaged or stolen. From catering equipment to technical or construction supplies, damaged equipment could be a huge blow for any business.
Commercial auto policies can also cover the equipment onboard your vehicles. Personal policies wouldn’t cover additional equipment or tools.
Get the Best Commercial Auto Insurance Rates
If driving is an essential function of your business, it’s imperative that you have a commercial auto insurance policy in place. If you want to ensure you can remain in business for many years to come, you need to be confident you can weather out any storm that comes your way.
If you are looking for the best commercial auto rates, then contact Amistad Insurance Services today and receive a free insurance quote.