Deciding on Commercial Auto InsuranceMarch 4, 2022
Using automobiles for business purposes can expose your company to potential liability. Proper insurance coverage will help mitigate that risk, but you should keep in mind some important factors to find the appropriate provider and policy.
Business Use of Your Vehicle
If your business doesn’t dispatch trucks to far-flung locations, you may question whether you need commercial auto insurance. You could be overlooking occasional uses of personal or rented vehicles for business. How frequently might this happen, and what does your personal auto insurance policy say about such usage? Note all vehicles that might be used for company business and how often this might occur.
Types of Coverage Needed
As with any type of insurance, a commercial auto liability policy may include various coverages, depending on the nature of your business and how automobiles are used by your personnel. Commercial insurance can cover injury and property damage due to road accidents, but also may include other causes of vehicle damage, like extreme weather or natural disasters. You should also have the option to include vehicles other than those bought specifically for business use, as noted above.
Legal and Customer Requirements
Some states or municipalities require businesses to carry insurance including commercial auto coverage. Likewise, your clients may demand proof of auto liability and other insurance. You should keep these obligations in mind when choosing your auto policy.
Clear definition of your company’s needs, combined with advice from a reputable insurance company, can ensure you have adequate protection against any bumps on the road to business success.