Commercial Auto Insurance For Small Businesses

What is commercial auto insurance?

Commercial auto insurance is an insurance policy that provides coverage for damages and liability to a vehicle titled after your small business. If you own a small business where transportation of materials, tools and workers is a major part of day-to-day operations, you should definitely have commercial auto insurance – indeed, most states make it obligatory for business vehicles to have commercial auto insurance.

Can my work vehicle be covered under personal auto insurance?

Depending on the usage of your vehicle, you will most likely need separate commercial auto insurance for your business vehicle. Such conditions include:

·         Performing a service with the vehicle, such as deliveries.

·         Transporting goods/people for a fee.

·         The vehicle is operated in the name of a business.

·         Transporting tools for a business.

What is covered under commercial auto insurance?

The following instances are covered under commercial auto insurance:

·         Bodily injury resulting from personal fault.

·         Property damage, including another party’s property.

·         Medical payments, regardless of fault.

·         Injury or damages from another party consisting of an uninsured driver.

·         Physical damage to the vehicle due to vandalism, theft, etc.

This applies to people included in the policy as owners, family members and drivers.

How is the cost of commercial auto insurance calculated?

The cost of commercial auto insurance depends on many factors, such as:

·         The number and types of business vehicles

·         The risk of conducting business with such vehicles

·         Your claims history

·         The driving record of your employees

How can I get affordable commercial auto insurance?

Here’s how you can minimize your costs and max out your benefits on commercial auto insurance:

1.   Buy commercial auto insurance as part of a bundle

If bought from the same company as the one you got business or home insurance from, you may receive a discount. Bundles are usually cheaper than separate policies.

2.   Customize your insurance

Cut down on claims and use risk management to drive down the cost of your insurance and ensure that it’s tailor-made for you.

3.   Risk management

Emphasizing safe driving, a good driving record by your employees, and good operating conditions of your business vehicle will help your insurance provider classify it as low-risk and thus charge less to provide commercial auto insurance.