Read commercial auto insurance for small business articles about costs, coverages & options. EK Insurance provides business auto articles aimed at helping vehicle insurance buyers make and informed choice, and to better understand the policies you already have.
Commercial Auto Insurance For Small Businesses
Whether you own a pizza shop that delivers or you are a florist that transports flowers to clients, company vehicles are an important part of your business. However, while they may be the backbone of your establishment, there are certain risks that come with owning and operating vehicles for small businesses, such as accidents and injuries. Fortunately, there is a way that you can protect drivers and your business from these risks: commercial auto insurance.
Not sure what commercial auto insurance for small business is all about? Keep on reading to learn more about this type of insurance and the benefits it can offer your business.
Commercial Vehicle Insurance Explained
As the name suggests, commercial auto insurance is a type of vehicle insurance policy that is specifically designed for businesses that own and operate vehicles. Generally, this type of insurance coverage provides four main types of protection:
- Liability coverage. This helps to pay for any third-party bodily injuries or property damage that may occur as a result of a vehicle-related accident. It can also help to cover the costs of legal expenses that may arise after an accident, such as lawyer fees, court fees, and settlements.
- Collision & Comprehensive coverage. If a company vehicle is damaged by an accident or something other than an accident (a falling tree, etc.), this type of insurance can help cover repair costs.
- Medical expense coverage. If a driver or passengers are injured, commercial auto insurance can assist with the medical expenses, no matter who is at fault.
- Uninsured / Underinsured motorists. Should someone who isn't insured cause an accident and hurt your company drivers, this coverage allows the business owner to claim against their own insurance for costs associated with injuries including medical expenses, pain and suffering & lost wages.
The type of commercial auto insurance for small business a company needs depends on the defined risks that are associated with using vehicles for business use. It's important for business owners to determine what risks they face in order to select the right policy. A reputable insurance broker can help you indentify these risks.
What Commercial Vehicle Insurance Doesn't Cover
An insurance provider will not cover any physical damage a business vehicle sustains if that damage is the result of exclusions. For example, if you or an employee is driving a company vehicle after business hours and are involved in an accident while doing something unlawful (committing a crime, for example), it's likely that the insurer will not cover the cost of damage to the vehicle.
Some other common exclusions found in commercial auto insurance policies might include:
- Damage that occurs while moving a company vehicle.
- Accidents that are caused by relatives of an employee who are driving a business vehicle who were not listed on the policy.
These are just some of the exclusions. It's important to know what your commercial vehicle insurance policy doesn't cover so that you can properly train and direct the employees who will be driving your company vehicles.
Do You Need Commercial Auto Coverage If You Have Personal Auto Insurance?
That depends. If you are only using your personal vehicle to commute to and from work or to meet a business client on occasion, your personal auto insurance policy might be suitable. However, if any of the following apply, commercial auto insurance coverage is a wise investment for you, your employees, and your business:
- You drive your personal vehicle for business-related affairs on a frequent basis.
- A vehicle that you own is registered to your business.
- Vehicles that are registered to your business are operated by employees.
What Does a Commercial Auto Insurance Policy Cost?
There are several factors that an insurance provider will take into consideration when they determine a rate for your commercial vehicle insurance policy. Some of the factors that are considered include:
- The industry your business is in.
- The driving records of your employees.
- The items that are transported with business vehicles
- The amount the vehicle is worth.
- The type of vehicle that your business uses.
- The amount and type of coverage your business needs.
- The company's drivers claims histories.
- The company's credit rating.
Of all factors, your company's specific risk factors are the most heavily weighed when determining the cost of coverage.
Further Reading On Business Auto Insurance
Read through helpful commercial auto insurance for small business to help you better understand polices you own or are buying.
- Business Auto Coverage Form
- Commercial Auto Insurance
- Bobtail And Deadhead Coverage
- Bobtail And Physical Damage Insurance
- Bobtail Insurance vs Non-Trucking Liability
- Commercial Auto Insurance Hired And Non-Owned
- Commercial Auto Insurance vs Personal Cost
Get A Small Business Commercial Auto Insurance Quote
Not all commercial auto insurance for small business polices are the same. If your business uses cars, trucks, vans or more, let one of our expert agents take a look at your situation. In most cases we can save you money and offer you better policy options than you currently may have.
If you are looking for state specific Commercial Auto Insurance quotes, costs and information: California Commercial Auto Insurance, Delaware Commercial Auto Insurance, Illinois Commercial Auto Insurance, Kentucky Commercial Auto Insurance, New Jersey Commercial Auto Insurance, New York Commercial Auto Insurance, Pennsylvania Commercial Auto Insurance, Texas Commercial Auto Insurance.