Acquiring the proper forms of insurance for your company is one of the most important financial decisions that you will make, and one of the policies that you may need is commercial auto insurance. These policies are designed to protect a company's assets and are a legal requirement for many businesses. Here is a closer look at exactly what this coverage entails and when a business owner and their employees will need to upgrade from private auto insurance.
Do I Need It?
It is tough for many small business owners to decide when a commercial policy is actually needed, especially when there are no vehicles in the company's name. The general rule to remember is that commercial coverage will be required when any private or commercial vehicle is used for one's business. This includes making deliveries, picking up goods, and transporting clients. Additional coverage will be needed if your company rents or leases vehicles to other parties. Commercial coverage is not needed if the vehicle is used solely to commute to and from work.
What Is Covered?
A commercial policy provides all of the same coverage as a private policy including damage to private or public property, personal injuries, and legal fees if a lawsuit occurs. What sets commercial policies apart is the scale of coverage as well as the unique situations that will be covered such as multiple employees using a single company vehicle. In the event of an accident, some or all of the subsequent expenses will be covered without putting the company's assets at risk.
The Benefits of Commercial Auto Coverage
Failing to maintain the proper commercial coverage could become a lengthy and expensive problem for a business owner. If an accident does take place, then a company's assets could be at risk and owners may find themselves facing a variety of legal fines and fees. Having a comprehensive commercial auto insurance policy in place will give the owner peace of mind that their company and their employees are protected any time they are on the road.