Commercial Auto Insurance for Business Owners
Commercial auto insurance is for vehicles you use in the operation of your vehicle. Coverage offers financial support should your business vehicle or vehicles get into an accident. It also comes into play if any vehicles are stolen or vandalized. Plus, you need insurance on these vehicles the same as with any vehicle. That includes vans, trucks, cars, and any other vehicles you use for business.
Commercial auto insurance policies have four main options – liability, uninsured/underinsured motorist, comprehensive, and collision. These are the main reasons why having this coverage is beneficial.
Liability coverage protects you if you cause an accident. You will need enough coverage to protect your business from a large claim. This is especially true if someone is seriously hurt or killed. Uninsured/underinsured coverage protects you if another party causes your accident, but they are either uninsured or underinsured. This might apply if the person has the minimum coverage required by the state, which might not be enough to cover the damages. When that happens, the insurance company steps in and helps you financially.
Comprehensive coverage is for issues such as fire, theft, and vandalism of insured vehicles. Collision coverage comes into play if your business vehicle is in a collision with anything other than another vehicle.
As a business owner, you will probably be concerned about the cost of insurance. Keep in mind that a higher deductible will lower your monthly premiums. But you will have to pay the higher deductible should a mishap occur. This is an important part of your business expenses, so contact an insurance agent for assistance.