For many business owners, figuring out what kind of coverage is needed for the autos you own and operate to run your business can be a challenge.
The fact is all motorized vehicles, whether used for personal or business purposes, require auto insurance coverage. Automobile liability insurance – required by most states – covers medical expenses for injured persons and damages to the property of other individuals as a result of a motor vehicle accident caused by the insured’s negligence.
Securing a comprehensive Commercial Auto Insurance policy will help keep you and your business protected in the event of an accident in a vehicle used in the daily operations of your business.
The types of coverage provided by personal and commercial auto insurance policies are essentially the same, with a few important distinctions. Most commercial auto insurance policies tend to come with higher liability limits. You may also find that they carry coverage that protects rented and other non-owned vehicles, including employees’ cars driven for company business.
There are a few factors with regards to ownership and use of vehicles that should be taken into consideration when determining whether a personal or commercial policy is appropriate. These include:
Who owns or leases the vehicle?– You, individually or the business, as an entity.
Who drives the vehicle? – You or your employees?
What is the primary use of the vehicle? – Are you using it to transport people, deliver packages or carry hazardous materials, etc.?
Do your employees use their own autos? If your staff is using their own vehicles to perform deliveries, sales visits, picking up supplies, and other errands for your business and they are involved in an accident, you could be held liable for any accidents they cause.
Based on the specific risks that your particular business might face, you may find it’s in your best interest to consider collision and comprehensive coverage to protect yourself against damage to your company vehicle(s).
The right coverage can safeguard commercial autos used by an insured business, trucks of many types, service and delivery vehicles and fleet vehicles. Moving companies and 18-wheel freight haulers may not be good candidates for Commercial Auto Insurance but we can assist in determining the best plan for your business.
So, whether you use your own car or a fleet of pickups or box trucks to get the job done, our expert agents at News Insurance can help you figure out the best way to keep your business moving smoothly.