If you own or manage a business, it is important to insure all automobiles used for business purposes. Do not assume the driver's personal insurance will provide coverage in an accident.
A separate insurance policy should be available for every vehicle used for business. This coverage typically comes in the form of commercial auto insurance. Let's take a closer look at this unique type of business insurance.
Why Businesses Require Automobile Insurance
Auto insurance for business vehicles is different than coverage for one's personal vehicle. Often, higher liability insurance is necessary for a vehicle used for work-related purposes. Additional coverage might also be necessary.
The bottom line is that personal drivers and drivers who work for businesses have unique insurance concerns. Consider that most vehicles driven for business take to the roads at a high frequency. These vehicles often transport valuable materials, products, work gear and employees.
Commercial car insurance is necessary to protect each of these items and individuals. Policies come with coverage levels that are different from standard auto insurance. Therefore, these tailored policy levels more thoroughly cover risks.
Instances When Commercial Auto Insurance is Necessary
Commercial auto insurance is necessary for vehicles employees drive for work-related purposes. If one uses his own vehicle for work, commercial car insurance is still necessary. Regular vehicles require insurance if employees drive them for work-related purposes.
Auto insurance is necessary for vehicles your business rents, leases or owns. A vehicle containing any type of equipment relating to work requires special insurance. The only instance in which a vehicle does not need commercial auto insurance is when it is strictly used to travel to and from work.
If an employee makes a simple errand for the company, they usually don't need commercial coverage. However, the nature of that errand might mandate commercial coverage. If they person is carrying sensitive business equipment, then they likely need coverage.
Don't let an Auto Accident Compromise Your Business
If you have any question whether a personal automobile insurance policy will suffice, contact your insurance agent. Your agent and insurer can help you determine whether your business operations mandate commercial auto insurance. It is always better to be safe than sorry. The last thing you need is for an auto accident to lead to a lawsuit that bankrupts your business.
We've got you covered. Buschbach Insurance can help you get commercial auto insurance that will protect your business. Call us at (708) 423-2350 for more information.