Commercial Auto Insurance

 

Do you own a business? If so, hopefully, you have commercial insurance. Included in your business’s insurance should be a policy for commercial auto insurance, too. But why? With commercial auto insurance, if the vehicle used by your business is involved in an accident, any property damage, medical expenses, and legal bills will be better covered.

 

But is commercial auto insurance truly needed by all small businesses? Let’s find out.

 

Commercial Auto Insurance – Does Your Business Need It?

 

If vehicles are owned by your company, chances are, you could benefit from commercial auto insurance. Also, keep in mind that commercial auto insurance coverage for vehicles owned by a business is required in most every state today. Currently, however, it’s not required in Virginia and New Hampshire – yet. For any damage done to a company vehicle, the drivers in those states are responsible.

 

Regardless of whether it’s required by your state or not, it’s still a good practice. Unexpected costs like millions of dollars in medical bills can cause irreparable damage to a business.

 

Who Purchases Commercial Auto Insurance?

 

This type of insurance is frequently purchased by businesses that:

 

• Rely on couriers or delivery drivers.
• Transport employees or clients.
• Carry products, equipment, or tools used for work.
• Drive from worksites and to worksites.
• Own a vehicle that is business-titled.

 

What’s Covered?

 

To help cover property damage and/or medical payments related to an accident, commercial auto insurance can help. If you’re sued, this also helps cover legal expenses. Other damages and losses may be covered as well as things such as vandalism, theft, and more. Should one of your employees get into an accident, your businesses’ legal costs can be covered with an included liability insurance policy.

 

What about Your Vehicle and Employees’ Vehicles?

 

Is your vehicle – as a business owner – covered and are the personal vehicles of your employees covered with commercial auto insurance?

 

For personal vehicles, coverage is not provided by commercial auto insurance. You may consider buying “non-owned” and “hired” auto insurance if, for business purposes, personal vehicles are sometimes driven by employees. These types of insurance policies – HNOA (hired and non-owned auto) – provide liability coverage for vehicles used by your business but not owned by your business. This includes the following vehicles:

 

• Those rented by your business
• Those leased by your business
• Employee-owned vehicles

 

What Should be Included in Your Commercial Auto Policy?

 

At the very least, state requirements should be met by your policy. It’s also imperative that it cover any accident associated costs. If not, you’re going to start paying out of pocket for expenses like legal fees and more.

 

So that your driving situation is matched by your policy, talk to a broker or agent. Risks covered by various options include the following:

 

• Underinsured or uninsured motorist coverage
• Comprehensive coverage
• Collision coverage

 

Remember that, by adjusting your deductible, you can control the cost of your commercial auto policy somewhat. It will cost less each month if you take a higher deductible but, before you can collect on a claim, you’ll have to pay out more.

 

So, to get questions about adjusting your deductible and other queries answered regarding commercial auto insurance, to whom can you turn?

 

Does Your Business Need Commercial Auto Insurance?

 

If your small business needs commercial auto insurance, but you’re not sure about the specifics regarding this type of insurance coverage, we can help.

 

At K&N Brokerage, we pride ourselves on taking the time to get to know each of our clients individually and build a relationship with them. Experience our professionalism, knowledge, superior customer support, customization capabilities, and more.

 

If you need commercial insurance, let K&N Brokerage be of assistance. Contact us today for information.