Commercial AUTO INSURANCE
Many business owners may not be aware that insuring vehicles used in the conduct of said business is a necessity. One can easily begin searching for proper commercial auto insurance that will meet all one’s needs. Commercial auto insurance is specifically designed for vehicles used in the operation of one’s business. The policyholder is protected from liability issues and from costly repair bills should a commercial vehicle be damaged as a result of an accident or any other covered event.
Whether a business has a single vehicle or an entire fleet of trucks, there is a correct type of policy that one can obtain to meet the specific needs of the business.
To begin, one would be wise to first look into the relevant state’s requirements regarding commercial auto insurance coverage. Also, one certainly should heed the auto lender’s requirements as this could put a loan in jeopardy, should you have car notes. Each state and lender has different requirements for coverage levels and limits- One should use these as a guide to the very minimum requirements for his or her policy. Some business owners may conclude that purchasing additional coverage will be necessary for extras added protection.
Essentially, there are two most common kinds of coverage of commercial car insurance. The most purchased is the per vehicle insurance, which is normally obtained by small to medium sized companies. Larger companies will likely deem it more cost-effective to obtain fleet or group insurance. A fleet insurance policy is a comprehensive policy that provides coverage for all the vehicles and drivers at a company. This is different from the per vehicle insurance policy as per vehicle insurance is an individual policy that must be obtained for each vehicle used in the operation of the business. All of the employees that use that particular car must also be on that policy. A fleet or group policy puts together all the coverage for one’s various drivers and vehicles into one place and can result in considerable savings.
Because a business owner may be mandated by law and by a lender to purchase coverage for his or her commercial vehicles, one would be wise to review all the policies that are in effect to ensure that they meet all the needs of the business and are in compliance with the lender and the state’s requirements. Coverage often needs to be changed over time, certainly as a business grows, and it might very well benefit one to look into updating coverage now.