If you run a business that relies on delivery or transport, vehicles and the employees that drive them are the lifeblood of your business and need to be protected. Business Automobile Liability Insurance, or commercial auto insurance, will help you cover the costs of repairing or replacing company vehicles and will help protect the driver in the event of an accident. What’s covered, though, depends on the boundaries of the insurance policy.
If vehicles are the driving force behind your business, we’ve laid out some things you should know and some factors you should consider when choosing commercial auto insurance.
Do You Need It?
First, you should decide whether or not you need commercial auto insurance. You can determine that by answering a few questions.
Does your business…
- Deliver goods using a vehicle?
- Offer transportation service to people?
- Transport items?
- Transport hazardous items?
- Tow or plow?
If you answered “yes” to any of these questions, you need commercial auto insurance. But, keep in mind that the type of business you own will also determine whether you need commercial insurance. If you’re a sole proprietor, you might only need personal auto insurance. If you’re not sure, it’s a good idea to talk to an agent. Better to ask than to go without and put yourself at risk.
If you do determine that you need commercial auto insurance, you need to make sure the policy you choose will do what you need it to do.
The right commercial auto insurance policy should cover:
- Bodily injury
- Medical coverage
- Damage not from collisions
- Towing and labor costs
- Loading and unloading liabilities
- Property Damage
The coverage for your business will vary and should be discussed with an agent.
How Much Will It Cost
The price of your policy will vary based on your needs. An agent will be able to help you determine what coverage you should have and what you don’t need but there are outside factors that will determine the cost of your coverage no matter what you choose to cover.
Some of those factors include:
- The value of vehicles
- The types of vehicles
- Employee driving records
- Amount of coverage
- Items being transported
Your potential for risk is what will inevitably determine the cost of your coverage so it’s in your best interest to make sure your hiring drivers and employees with good records, who can be trusted with your vehicles and cargo.
If you have multiple vehicles, you should look into Fleet Insurance. This will provide liability coverage for all the vehicles owned by your company no matter who is driving them. Your employees can drive any vehicle in your fleet and still be insured if they cause an accident.
The most important part of choosing commercial auto insurance is making sure you have the right coverage for your business.
Don’t’ put your vehicles and drivers at risk. Talk to an agent today or use our coverage calculator to make sure you’re covered!