Today, business owners work with independent contractors to handle many of their specific needs. Yet, many also still use employees to handle tasks such as courier work or product delivery. When you have employees doing the work, you need to have insurance to protect those drivers and your assets. Commercial auto insurance helps you to do that. Here is what you need to know about buying coverage.
Which Vehicles Should Have Coverage?
This can be a complex decision depending on the way you use vehicles within your company. If your company owns the vehicle outright, it needs commercial auto insurance. If your employees, or you as the owner, drive a personally-owned vehicle as a component of business operations, that vehicle also needs coverage. To be clear, this does not mean you need coverage for the vehicle you drive to and from work. Rather, it should apply to vehicles doing business-related work. All vehicles leased to the business should also have this coverage.
What Coverage Should It Have?
Every business needs to minimize several risks with coverage. This includes damage or injuries caused to a third party and damage to your vehicle itself. Your employees, when they are operating your vehicle, still fall under your workers’ compensation coverage. Your commercial auto insurance should include the following types of coverage.
This minimizes losses when you or your employees damage another person’s property or cause injury to that person. Liability coverage for businesses should be comprehensive. Risks, especially involving large vehicles, are high. You'll need high liability limits on your coverage, not just your state's minimum required coverage.
This component covers damage to your vehicle. It can cover damage caused when your vehicle rolls over or has damage from colliding with another person, car, or object. It protects the value of your car, and can help you buy a new one in case the insurer totals the car.
This covers losses related to your vehicle through accidental instances or unavoidable instances. This may include storm damage, vandalism, theft, and certain flooding.
What Else You Should Know
If you own a large number of vehicles, this coverage can seem overwhelming. Your business insurance agent can provide you with more insight into savings options. The key is to protect your assets at all times.
Also, be sure to choose your drivers wisely. Employees should be safe drivers with a clean driving record when possible. This minimizes your risk. It also lowers your insurance costs. Your agent can help you determine how to ensure proper coverage for each of your vehicles.
Contact Alteza Insurance Agency today to learn more about commercial auto insurance, or to get started on your policy.