Many small business owners mistakenly believe that the cars they use for business will be covered by personal car insurance policies. Business owners frequently discover the hard way that they need commercial auto insurance for a vehicle used for business: after they attempt to file claims on their personal auto coverage for damages or injuries from accidents.
It is not always easy to figure out what specific car insurance you need for a business vehicle, and it is important that you consider all your options when you are looking for insurance quotes.
Business auto insurance is designed to cover your investment in commercial automobiles, your employees’ expenses in the event of an accident, and the added liability risks involved when you or your employees use a vehicle for any commercial purpose.
Liability is a potential issue anytime other people’s safety and property are at stake. If you or your employees cause an accident while transporting people or goods, your company assets can be at stake. You need to have commercial car insurance in place to cover the costs associated with injuries and property damage your company is responsible for, and potential liability lawsuits.
There are other advantages aside from the increased liability limits offered by car insurance for business use. If you have a small company that owns a fleet of commercial vehicles, your company car insurance policy will cover claims on any of the vehicles. In addition to this, if you carry commercial equipment in your business vehicles and there is an incident that damages the equipment itself, the equipment is typically covered too, and you would only have to pay a single deductible.
When you get commercial car insurance, you will have a number of decisions to make based on your company’s use of business vehicles. For example, you will need to choose the limits for each portion of your policy, including liability, collision, comprehensive and optional coverage such as uninsured motorists insurance.
Additionally, you can strengthen your insurance plan even further by taking out specific non-owned vehicle coverage or individual named insured coverage. If you would like to learn more about the difference between these options, contact a local independent agent in the Trusted Choice network. Independent agents work for you, not for an insurance company, and will help ensure that all of your commercial auto insurance needs are covered.
When choosing the best plan for your company, be sure to go over every aspect of your coverage that could make a difference when it comes time to file a claim. For example, you might want to:
To make sure that you get the commercial vehicle coverage you need, it is important that you select the correct policy and options that match your risks, profile, and budget. However small your business is – even if you are self-employed – commercial car insurance will give you the safety net that you and your business require.