One of the most important business insurance coverages you can have is commercial automobile insurance. This is especially true if your business specifically has a fleet of vehicles, but you may need it even if you don’t. If you use a vehicle, including your personal one, for business functions, then you may not be covered properly. If the unthinkable were to happen and you were held liable for injury, death, or property damage, then you could find yourself in an unimaginable financial hole. Here is a Q&A about commercial auto insurance to help you understand the ins and outs.
Commercial auto insurance provides you with coverage against many risks from operating vehicles owned by the company. Coverage options will vary from provider to provider, but most have basic coverage options. This includes collision coverage against damage to another vehicle, coverage for injury or death, and property damage. You can be protected against having to pay for medical bills or funeral costs for anyone who may have been injured or killed in an incident caused by one of your vehicle operators. Most commercial auto policies will also include coverage for rentals to continue operating while the original vehicle is getting repaired.
Commercial auto insurance may also include some different types of coverage that are not usually available on personal policies. For example you can get uninsured driver coverage. This protects your employees if they are injured or worse while on the road by another motorist who is uninsured. You can also get direct compensation coverage, which will protect your drivers in the event that one of them is in an accident for which they are not at fault. Every state has different requirements, so make sure to check yours.
Most likely you are required by your state’s laws to have commercial auto insurance if your business owns vehicles. There are only two states that do not require it: New Hampshire and Virginia. In all states, drivers, business owners, and those involved in maintaining the vehicles can be held liable and responsible for damages, medical bills, lost wages, and other costs associated with the incident.
Most likely you are required by your state’s laws to have commercial auto insurance if your business owns vehicles. There are only two states that do not require it: New Hampshire and Virginia. In all states, drivers, business owners, and those involved in maintaining the vehicles can be held liable and responsible for damages, medical bills, lost wages, and other costs associated with the incident.
Most personal insurance policies exclude when the vehicle is being used for work. You should check with your insurance provider to make sure. If you have a personal vehicle, or you lease one, you get hired and non-owned coverage. This will protect you in the event that something happens while you are using your personal vehicle while going about work functions. These functions can include making deliveries of product, transporting equipment, or hiring out your vehicle.
The level of coverage you get will depend on the state in which you live. When you are shopping for commercial auto insurance online, make sure that you take those requirements into consideration. Certain types of businesses may carry more risk, and therefore should have higher levels of coverage. These include businesses that have large trucks or other vehicles that have the potential to cause more damage than the average car. While you must meet your state’s minimum requirements, you may choose to go over and above that if your business is at additional risk.
Most commercial policies will allow for some personal use of a company-owned vehicle. How much will depend on your insurance provider. If the only use is employees bringing vehicles home at night, then most likely they are covered under their personal policies and you do not have to add additional coverage.
Ridesharing and food delivery have become very popular business choices in recent years. You should remember that even though you are using a personal vehicle, you will still need additional insurance. In fact, ridesharing and delivery both come with unique risks that can make it hard for some to get insured at all. Do not assume that your personal policy will cover you. Check with your insurance provider to see if you can add additional coverage, or shop around for other options.
Luckily, getting the right commercial auto insurance does not have to take a long time. You can shop online, and enter in your business details to get quotes. Once you have chosen a provider, you can be fully covered within a couple of days. Make sure that you follow your state’s guidelines for carrying and displaying your insurance policy in your vehicles.
Operating commercial vehicles tends to come with unique risks when compared to personal vehicles. That’s why many insurance companies will offer special coverage options that you can add to your policy. For example, you can get replacement for theft or damage, coverage for rental vehicles, no depreciation factor for rental vehicles, no increase in your premiums even if your drivers are at fault, and protection for your storage bays and parking garages. Every business is unique, even if they do the same thing. Make sure that all aspects of your vehicle risks are covered so that you are never left unprotected. Your insurance provider may have upgrades that will suit your specific needs.
In most cases, your commercial auto insurance costs are tax deductible. This is true for those who operate a small business out of their home and for larger businesses that have a fleet of vehicles. Even employees who use their personal vehicles for work purposes may get deductions based on their mileage if they are not already reimbursed by their employer.
