One type of insurance that most business owners don’t realize they need is auto insurance. However, not just any auto policy will do. For businesses, the solution for their coverage needs is found in commercial auto insurance.
Even businesses that don’t do a lot of mobile work can still benefit from this coverage. Like other auto policies, it’s there to protect drivers and automobiles from the ramifications of accidents or other vehicle hazards. Still, unlike other policies, it’s designed to account for the fact that a business also has a stake in vehicle operations and could stand to lose out when problems occur.
Let’s take a closer look at why this coverage is essential for any company that does business behind the wheel.
Commercial Auto Insurance is Business-Specific
When you buy a company car or send an employee on an assignment in their own vehicle, consider the vehicle to be a mobile part of your business. These vehicles and their drivers are representative of your company, and when accidents happen, the business itself has to get involved.
Following an accident in either a company car or an employee-owned vehicle, the business might be on the line for paying for numerous recovery costs. It is commercial auto insurance that will enable you to both cover your own losses and pay for the damage of others, without placing an undue strain on your company finances.
Commercial Auto Insurance is Mandatory
Nearly all states require all drivers to carry some form of auto insurance. Therefore, to send any of your company cars out on the road, you must have coverage in place. Otherwise, penalties will result. The reason you need commercial auto insurance specifically is because standard auto insurance issued for the average driver is not adequate to fully insure a business, and often excludes commercial drivers altogether.
Commercial Auto Insurance Makes Accidents Easier to Afford
Think of some of the ramifications of a commercial vehicle accident:
- Your employee driver might get injured.
- The company vehicle could sustain significant damage that will require thousands of dollars' worth of repairs. Or worse, the vehicle could be destroyed.
- Other parties involved in the accident might sue you because of the injuries or property damage they sustained. If the accident was your fault, then you might be responsible for paying them.
All of these (and other) scenarios can create a significant cost burden for the involved business. Of course, you don’t want to face the prospect of not being able to pay for the necessary recovery cost of any accident, or of draining your bank accounts just trying to do so. Where commercial auto insurance can provide its greatest benefit is by helping you minimize the cost loss that you might face from these hazards. Therefore, the business will be able to weather the storm without an unsustainable loss.
Our agents are here to answer all of your questions about commercial auto insurance, and we’re committed to helping you design the optimized benefits package that will always offer you top-of-the-line protection. You can rely on use to be by your side both during your search and well into the future.
Also Read: Can A Non-Employee Drive A Company Car?
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