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.
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When Do You Need Company Car Insurance?
- When your employees drive vehicles on company time
- When you or an employee uses a vehicle as a limousine or taxi
- When you have a partnership or corporation that owns vehicles
- When your vehicles are registered or titled to the business
Why You Need Business Auto Insurance
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.
How to Protect Your Business with Company Car Insurance
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 our 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:
- Make sure your liability coverage extends to any new vehicle purchases and the company's use of non-owned and hired vehicle.
- Ensure that your plan will cover all of the commercial vehicles that you currently own.
- Add rental reimbursement coverage so you are prepared for times when your commercial vehicle is inoperable. This element of company auto insurance coverage can make a huge difference if you lose a vehicle with short notice. The rental reimbursement will help cover the cost of renting a vehicle – which will mean your business won't have to stop operating if you suffer a break down.
- Add single deductible options for any equipment that you transport within your company vehicle or on an attached trailer. This is an important option to consider because specialized work equipment can be very expensive. If you have business car insurance you will be able to pay a single deductible for both the vehicle and the equipment in the event of an accident.
- Consider a business umbrella policy that will cover excess liability. This kind of policy kicks in if a claim exceeds your business auto liability coverage. For example, in the event that you or one of your employees is responsible for a serious accident that results in extensive property damage or injuries and/or leads to a large liability suit, your business umbrella policy will protect your business assets.
Get Business Auto Insurance Quotes Tailored to Your Needs
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.
Use our independent agent matching system to find the best insurance plan in your area. You tell us what you’re looking for, and our technology will recommend the best agents for your needs. Any information you give us will only be sent to the agents you pick.