Business owners often find themselves pulled in a variety of directions. The high-level, daily decision on whether to spend time focusing on strategy, finances, or marketing can make or break a business.
By comparison, determining whether to have a commercial auto insurance policy should be a relatively simple decision that can be made confidently and quickly by answering one critical question.
Do your employees drive company-owned, leased, or personal vehicles for business, such as deliveries, transporting goods, or visiting job sites?
Do your employees drive company-owned, leased, or personal vehicles for business, such as deliveries, transporting goods, or visiting job sites?
Being insured is OK. Being protected is better.
Scan the items below and become familiar with insurance terminology.
Liability Coverage
Some consider this the most important part of a policy since it is legally required in almost every state. Liability coverage protects your business from potential legal risks and physical damage or injury caused by any of your employees in an at-fault accident. Most business policies use a Combined Single Limit (CSL). A CSL provides a single lump-sum coverage limit per accident, offering more flexibility than the "split limits" common in personal insurance. Talking with your insurance agent can help you determine what type of coverage is best for you and your business.
Physical Damage
If your company vehicle is damaged, this part of the policy gets you back on the road. Collision and comprehensive are the key parts of a policy that cover your work vehicles against a wide range of on- and off-road risks.
Hired and Non-Owned Auto
Some business owners overlook this feature because it’s not clearly explained. It’s designed to extend liability protection to vehicles your business uses but doesn't technically own. For example, this can help provide coverage when you rent or lease for business trips. Also, what if an employee runs an errand for the business owner in their personal car? Your agent can provide insights.
Specialized Add-ons & Endorsements
While every business is unique, they share commonalities that can be addressed through tailored policies. For example, will rideshare be included in the coverage?
There are a lot of demands on a business owner's time. Making decisions about a commercial policy should not be one of them. Having a high-level understanding can help you move forward with confidence.
Having a high-level understanding of these options helps you move forward with confidence. Talk to your insurance agent to find the right fit.
You may not need a commercial auto policy now, but keep these ideas top-of-mind if you find yourself having employees drive company-owned or personal vehicles for business, such as deliveries, transporting goods, or visiting job sites.
Having a high-level understanding is helpful, but for particular questions, consider speaking with an insurance agent.