If you own a fleet of cars for your business, commercial auto insurance can be purchased to cover every vehicle you own. Whether you own a maid service, a computer repair company, or a plumbing business, insuring your cars is an absolute must.
Let’s look at what commercial auto insurance can do for you, and why you should use it for every vehicle that operates under your company’s umbrella.
There are a lot of reasons why businesses carry a higher liability, including the fact that they have more resources than the average driver. If your employee hits another driver who wants to take advantage of all you've built, they may be more likely to claim severe injury or property damage. Commercial auto insurance can prepare for possibility by increasing the limits of liability coverage. In other words, if you must go to court, you won't be crushed under the weight of attorney bills.
Most individual drivers aren't driving around with their most expensive property in their car, but a commercial driver is likely to need some important tools when on the job. Whether it's a canister vacuum cleaner or a professional laptop, commercial auto insurance takes into account any equipment that can be lost or stolen while out and about (or even when the car is seemingly safely parked in your lot).
Keep in mind that even normal activities can put you at an increases risk for a property coverage claim. If you happen to make a lot of routine visits, this can also increase your risks of an incident, as more people know when and where you'll be at any given time.
There are a lot of unexpected events that come up that business owners can't always predict or plan for. You may need to have someone else drive a car to an appointment — a driver who isn't listed anywhere on the policy. Or you may need to use a company car to run a personal errand due to an emergency. If you don't have the right policy, these one-off situations can end up being denied because they don't fit the original terms of your plan.
Commercial cars are a must for businesses that thrive on flexibility. But these vehicles can end up being a curse for business owners without enough insurance. If you're concerned that your fleet is unprotected, it's time to start looking at the differences between commercial auto insurance policies.