Commercial Auto Insurance: What to Know

As a business owner, you know that a lot of hidden costs and surprises can take a chunk out of your budget. One of the expenses you may not factor in is the price of insurance on every aspect of your company. In most states, though, you need insurance coverage for your business, equipment, and employees to operate legally.

Insurance is a cost you may not have considered when you start an auto repair shop or a trucking company, but it is one you don’t want to miss. Whether you use a personal vehicle for business reasons or operate trucks on a daily basis, you have to insure your business for liability, and other appropriate insurance to use them as part of your company. This blog is focused on commercial auto insurance. Read ahead to to get a brief idea about this policy.

Depending on the insurance company you work with, you may be able to add coverage to your policy. For instance, if your vehicles usually carry merchandise or a significant amount of cash, you may want to insure against theft and extend the policy to cover items within your cars. Comprehensive or named-peril coverage may be wise if your vehicles operate in specific dangerous conditions.

If your business relies on company-owned vehicles to function, such as a delivery service or food truck business, you may want to add rental car costs to your policy. That way, if anything happens to your vehicles, you can keep your business running while the car, van, or truck is in the shop. Some policies even cover your rental vehicles for certain busy seasons or transporting your employees. If you get into an accident in leased car or one of your employees do, then you will need to check with the leasing company what the next steps are and if you need to contact a law firm to see the best way to handle this case.

As with most insurance policies, your commercial auto coverage is a matter of both necessity and preference. Your state will require all policies to meet legal minimums, like medical expenses for those injured in an at-fault accident (if you would like to know how the New York State No-Fault Insurance or any such insurance works, you could refer to various blogs and articles online), but otherwise leave the rest to the business. The responsibility falls on you to choose policies that meet your company’s needs and protect your drivers from outrageous charges.

If you need any help with insurance, Metropolitan Insurance Service Consultants, Inc, has your back. Get in touch today to cover your commercial vehicles or purchase any personal or business insurance you might need.