Auto Insurance: The Importance of Commercial Auto Insurance

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Last updated on: October 10, 2019
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If you have a small or medium-sized business which involves vehicles, commercial auto insurance is important for you. A commercial auto insurance policy can cover cars, trucks, and vans — or an entire fleet of vehicles. It is very important to have a commercial auto insurance policy as it will cover all of your vehicles and drivers and pay for the damage to a vehicle, injury, loss of a vehicle, loss of a driver and damage to the other party’s property.

What does a Commercial Insurance cover?

There are numerous types of commercial auto insurance coverage to choose from. They are available depending on the need for coverage. Commercial auto insurance can provide primary coverage for legal responsibility and liability, cost of protection and more. Other coverage types include comprehensive and collision. Comprehensive covers repairs to your vehicle that may be caused by vandalism, theft or severe weather. Collision covers repairs and may restore or compensate for damage to a vehicle as a result of an accident.

Different types of car insurance coverage that can be applied to Commercial Auto Insurance:

  • Bodily injury liability
  • Property damage
  • Comprehensive
  • Collision
  • Medical payments
  • Personal injury protection
  • Uninsured/underinsured motorist

Additionally, accident Benefits coverage pays for medical and rehabilitation expenses, funeral expenses, and economic loss due to disability or death resulting from road accidents. Third-party coverage provides compensation for the damages caused by your company driver to a third-party. Collision coverage reimburses the losses incurred by your vehicle as a result of a road accident. Comprehensive coverage pays for the damages or losses resulting from acts of nature, theft, vandalism, and accidents other than collision.

Types of businesses that may require Commercial Insurance:

Commercial insurance coverage protects a business from potential lawsuits if any of their vehicles are involved in an accident, no matter who is at fault.

Catering Companies:  These types of businesses involve traveling to and from worksites daily. So, there is more probability of unusual happenings or accidents. The company can face a lawsuit if a driver is at fault in an accident. This coverage helps pay the costs of any damage or litigation.

Driving Instructors: If you are a driving instructor and use your own car for instruction, you should consider extra coverage (commercial driving insurance) — especially if the vehicle is an instructor car with two brakes.

Order Delivery: A business may be liable if a driver uses a company-provided car. There are many delivery businesses (such as pizza/food delivery services) that protect themselves by allowing the drivers to use their own cars. This takes the burden of obtaining insurance coverage off of the business and places it back on individual drivers.

Delivery Drivers – Furniture, Appliances, etc.: If your business includes transporting job-related equipment, products or materials, then it is good to have commercial insurance. Having this type of coverage can help reimburse the commercial vehicle insurance cost of lost equipment or goods following an accident.

Tips to save money on Commercial Auto Insurance

Saving money on commercial auto insurance is the same as saving on personal auto insurance. Here are a few ways you may be able to reduce your premium:

  • Hire only employees with good driving records.
  • Offer drivers an additional driving training session to enhance their skills.
  • Utilize insurance package discounts by bundling all of your insurance needs with one company.
  • Make sure your vehicles undergo periodic maintenance and inspection.
  • Take advantage of multiple insurance discounts if you have more than one vehicle to insure. Having a fleet covered by a single insurer can decrease the amount of premiums per vehicle.
  • Buy vehicles with additional safety features or have them installed on vehicles you already own.
  • If possible, park your business vehicles in a garage or other safe place.

What are the key benefits of Commercial Auto Insurance?

There are countless merits associated with commercial auto insurance. One of the most important is that it can make your business compliant with local and state laws. Another benefit auto insurance provides is coverage to both your employees and you. All in all, commercial auto insurance not only provides protection to your vehicle but also to your whole business.

If you are looking for commercial auto insurance, consider Alchemy Insurance. Our agents can offer you comparative rates and great policies for whatever your business vehicle insurance needs may be.

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