The Need for Commercial Auto Insurance

When shopping for commercial auto insurance there are several items to take into consideration, especially when as a business owner, you realize how important it is to protect your business assets from as many risks as possible. Having a vehicle that is involved in your business operations could be a liability and could put the business itself in jeopardy if a lawsuit is filed as the result of an accident. There are some key points to consider when talking to a potential insurance agent for your insurance policy:

• Commercial auto coverage should be purchased when you use a vehicle that is titled in the name of the business, regardless of how often the vehicle is used in the pursuit of business. If the business owns the vehicle the business could be sued in the event of an accident and this could call all of the business’s assets into question if legal proceedings were initiated. If the commercial auto insurance policy is not registered under the business name, the company could be facing issues as it relates to the validity of the insurance coverage rendered. A personal auto insurance policy will not provide the correct coverage if the vehicle is involved in an accident during the pursuit of business duties.
• The vehicle will be issued a classification when you purchase the insurance policy. An improper vehicle classification could void the coverage. As an example a truck used in business by an air conditioner or heater repair professional will have a different classification than a dump truck or a vehicle used on sales calls. Correct classifications are necessary to determine the right policy.
• Just as insurance companies differ on premiums and coverage so do they differ on the amount of liability limits that are offered with the policy. In most states minimum liability limits are set but many business owners opt to invest in higher liability limits to protect the business assets. Your business auto policy will also provide coverage for uninsured motorist coverage and uninsured coverage – this is protection is a safeguard against those drivers who operate vehicles without their own insurance. Your policy will also include medical payment coverage which is used to pay medical expenses for the insured. You can also purchase hired and non-owned auto coverage which pays for damages if the business would be legally obligated to pay if the accident occurs during the loading or unloading of hired or non-owned vehicles that will be used in your business.
• Coverage against collision and comprehensive coverage can also be added to a business auto policy. These types of coverage make sense as they will help cover you for the cost of replacement or repair of a vehicle covered under the policy.

At Balderson Insurance, we have years of experience working with business owners to help them find the best protection at the best price.   If you’ve got insurance questions (of any kind), need to know if you are protected, or need your policy reviews, call Balderson Insurance today at (301) 874-0772.