Things You Need To Know About Commercial Auto Insurance
If you have company vehicles, then it's vital that you make sure they are properly insured. Not only do you want to protect these company assets, you also want to protect the rest of the business in the event an employee is in an accident while operating the vehicle. If the vehicle isn't properly insured, then the other driver can sue your company and cause major financial repercussions. The following can help you choose the right policy.
Whose vehicle is used?
For company-owned vehicles, a full coverage commercial auto insurance policy is the best option. If your employees use personal vehicles for company business, then it's a bit trickier. You will need a system in place to verify that the employee's vehicle is properly covered by a personal policy. Just be aware that personal policies rarely provide sufficient commercial coverage, so you will need to purchase an umbrella policy to continue coverage where the personal policy ends. These policies usually come under names such as "hired" or "unowned" commercial auto insurance.
How much coverage is necessary?
A complete commercial policy will cover physical damage to the vehicle itself, as well as liability and bodily injury for the driver and passengers of both your commercial vehicle and any other vehicles involved in an accident. This should include any ongoing medical bills as a result of the accident, as well. Further, it will protect your vehicle assets in the event of vandalism, if an at-fault driver is uninsured, and from certain damaging weather events.
Are there discounts?
There are discounts available for commercial insurance, just as you would find with a personal policy. You can typically get a discount from bundling several services together. For a business, this typically means bundling things like your general liability, worker's compensation, and property insurance with your commercial auto policy. Paying the policies in advance as opposed to monthly can also land you a steep discount.
Will there be any limitations on staff?
Some limitations on the policy make sense—generally the policy only covers drivers that are currently in the employee of your company and that have a current, valid driver's license. Some policies may also have restrictions on past driving history, meaning that there may be a limit to how many tickets or at-fault accidents a driver can have in their past. Make sure you are fully aware of any limitations such as these and that your staff is aware of the repercussions.
For more help, contact a commercial auto insurance company in your area.