Commercial auto insurance isn’t just for big enterprises. Small businesses have the same, if not more, level of risk as larger businesses because automotive-related accidents could spell disaster with their costly expenses. As long as you have a vehicle for your company operations, you should already consider purchasing commercial auto insurance to protect not only your business finances but also your employees that use the vehicle.
If you’re unsure whether your business needs commercial auto insurance or not, read through this article! We’ll go over what’s covered by commercial auto insurance and why it’s important for small business owners to have one.
What’s Covered by Commercial Auto Insurance?
Commercial auto insurance differs from personal auto insurance. They may be similar in some ways, but the best way to understand how commercial auto insurance is different is by knowing what it can cover. Here’s a shortlist of what coverage is usually included in commercial auto insurance:
Accidents can happen anytime. Distracted drivers and pedestrians, stray animals, and even bad weather can cause unfortunate incidents on the road. Collision coverage helps ensure that the covered vehicle is protected in the event of a collision with another vehicle or an object (tree, guardrail, mailbox, etc.). This means that small business owners don’t have to worry about paying for a damaged work vehicle out of their pocket because the insurance can help them with the expenses.
Vandalism, fallen trees, and even theft of a vehicle aren’t always covered by personal auto insurance. Most commercial auto insurance policies, however, already have those covered under comprehensive coverage. This gives small business owners complete peace of mind over their company-owned vehicles’ security.
Loading and Unloading Coverage
Insured vehicles can be used to transport heavy and expensive work equipment if it is covered by loading and unloading coverage. The process and transportation of such equipment can be very dangerous. At times, it may result in an injury to an employee or bystander that would need to be compensated. It may also cause an accident involving another vehicle and the business would not only have to consider the expenses of the accident, but also the damages of the work equipment. Loading and unloading coverage helps ensure that all stakeholders are safe and covered in case of any event.
Medical Coverage Payments
This doesn’t just cover the business owner. Medical coverage for commercial auto insurance also covers employees who got injured in an automotive collision or accident. This means that employees can feel secure because they can expect proper medical attention should unfortunate events happen when they drive on the job.
Compensation for Uninsured Motorists
This is often covered under personal auto insurance, but it's great to know that commercial auto insurances include it too. This simply guarantees that the business won’t have to pay property or injury bills if the business owner or an employee gets involved in a vehicle accident with an uninsured motorist.
Why Do Small Businesses Need Commercial Auto Insurance?
Commercial auto coverage is designed to protect businesses of all sizes from litigation related to automotive incidents. Whether the incident is an auto collision, an unloading accident, or a new work truck stolen from the parking lot, commercial auto insurance is there to help pick up the pieces. But why do small businesses, in particular, need commercial auto insurance?
Small businesses already have a ton of expenses, but it’s important, early on, to allocate a budget for valuable things such as your assets and your employees. Commercial auto insurance is an affordable monthly expense that can go a long way because it protects your expensive vehicles and your driving employees.
Commercial auto insurance also keeps your business’ reputation and financial stability intact because you’ll be covered if you’re sued by another driver or a jaywalking citizen. Your business operations will also not be hindered even if vandalism or theft occurs. Employees will also easily get back on their feet as the insurance can help them with medical expenses.
While nobody wants to experience any of these incidents, the truth is that the future is unpredictable; even the most careful among us can get into an accident. The best way to be safe is by protecting your business and minimizing the risks with a commercial auto insurance policy.
If you need more information about commercial auto insurance or other important business insurance policies, we at CIII Insurance Services provide a broad range of Automobile, Commercial, Employee Benefits, and Management Liability products. We even partner with the finest carriers to deliver these products to you.