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ARI Blog: Article

Commercial Auto Insurance Tips

Many restoration contractors mistakenly believe that the vehicles they use for business will be covered by personal car insurance policies. Business owners frequently discover the hard way that they need commercial auto insurance for a vehicle used for business: after they attempt to file claims on their personal auto coverage for damages or injuries from accidents.

It is not always easy to figure out what specific car insurance you need for a business vehicle, and it is important that you consider all your options when you are looking for insurance quotes.

When Do You Need Commercial Auto Insurance?

  • When your employees drive vehicles on company time

  • When you have a partnership or corporation that owns vehicles

  • When your vehicles are registered or titled to the business

Why You Need Business Auto Insurance

Business auto insurance is designed to cover your investment in commercial automobiles, your employees’ expenses in the event of an accident, and the added liability risks involved when you or your employees use a vehicle for any commercial purpose.

Liability is a potential issue anytime other people’s safety and property are at stake. If you or your employees cause an accident while transporting people or goods, your company assets can be at stake. You need to have commercial auto insurance in place to cover the costs associated with injuries and property damage your company is responsible for, and potential liability lawsuits.

How to Protect Your Business with Commercial Auto Insurance

When you get commercial auto insurance, you will have a number of decisions to make based on your company’s use of business vehicles. For example, you will need to choose the limits for each portion of your policy, including liability, collision, comprehensive and optional coverage such as uninsured motorists insurance.

When choosing the best plan for your company, be sure to go over every aspect of your coverage that could make a difference when it comes time to file a claim. For example, you might want to:

  • Make sure your liability coverage extends to any new vehicle purchases and the company’s use of non-owned and hired vehicle.

  • Ensure that your plan will cover all of the commercial vehicles that you currently own.

  • Add rental reimbursement coverage so you are prepared for times when your commercial vehicle is inoperable. This element of company auto insurance coverage can make a huge difference if you lose a vehicle with short notice. The rental reimbursement will help cover the cost of renting a vehicle – which will mean your business won’t have to stop operating if you suffer a break down.

  • Consider a business umbrella policy that will cover excess liability. This kind of policy kicks in if a claim exceeds your business auto liability coverage. For example, in the event that you or one of your employees is responsible for a serious accident that results in extensive property damage or injuries and/or leads to a large liability suit, your business umbrella policy will protect your business assets.

If you would like to find out more, please contact our office.

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