Aside from the physical premises and inventory, vehicles are the next most valuable asset for a company. For businesses who need to ferry around their products between stores or deliver them to customers, their fleet of vehicles is their lifeblood.
To ensure a business is adequately protected from damages to their vehicles or any liabilities they entail, commercial auto insurance is a necessity and usually legally required.
Commercial auto insurance, also referred to as commercial car insurance, is meant for business owners who use their vehicles for business purposes. The policy is designed to cover any costs of physical damage or liabilities caused by the business owner or any of their employees while operating the vehicle. Coverage can be purchased for both large fleets of vehicles as well as for a single car or truck used by a small business. It can cover the full range of vehicles available, provided they are self-propelled, from cars to commercial trucks.
Different types of cars fall under the following categories:
Some vehicles can be insured with their own custom insurance that takes into account the vehicle’s specific features and uses. These include:
Additionally, for businesses with several vehicles, there is the option to purchase commercial fleet insurance. Fleet insurance is cheaper than buying a policy for each car separately. A fleet is defined as five or more self-propelled autos under combined ownership, used primarily for conducting business. However, some companies will define a fleet as two or more vehicles. Not all the vehicles have to be used for the same purpose.
If you or your employees have car insurance for their personal vehicle, it might provide some coverage when the car is also used for doing business. However, it will not provide adequate coverage when the car’s use is primarily for business or owned by the company.
You can be covered for a variety of different situations. Some are part of the basic package, others are considered extras. These coverages include:
If you want additional protection for your employees, you can purchase fellow employee coverage.
You might also consider emergency roadside coverage, which will help with towing, tire changes, jumpstarts, fuel delivery and other roadside requirements. This is especially useful when your employees drive in remote locations a lot with not many service centers around.
When purchasing insurance, there are ways to save a fortune in the long run. Not all policies are made equal, so know what to look for to avoid paying more than you need.
Great commercial car insurance can make a big difference for a business owner who already faces a lot of risk on a daily basis. If you need to talk to an expert, send us an email and we will help you secure your vehicles.
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The information contained in this website is provided for informational purposes only, and should not be construed as advice on any matter. The material in this website may not reflect the most current developments within the insurance industry. We disclaim all liability in respect of actions taken or not taken based on any or all of the contents of this website to the fullest extent permitted by law. Do not act or refrain from acting upon this information without seeking professional advice from a licensed insurance agent.