Does Your Business Need Commercial Auto Insurance? Event

Does Your Business Need Commercial Auto Insurance?

When running your business, you may need vehicles to help with deliveries, client appointments, or any number of other tasks. If your business is small and just getting going, you may think it’s all right to just use your own vehicle or have your employees use their own vehicle and reimburse them for the time they use it. In some cases, businesses will own a vehicle but not have commercial insurance – which can cause issues later on. Here’s what you need to know about commercial auto insurance and when you’ll need it.
 
When Does Your Business Need Commercial Auto Insurance?
 
In most cases, commercial auto insurance is needed when a vehicle is being used the majority of the time for work purposes, or if the use of the vehicle is crucial to the business. Depending on the nature of your business, what kind of items or materials you’re transporting in your vehicle, and how many employees drive for you, you may find you’d benefit more from the protection against damage and theft that commercial policies can offer.
 
Additionally, if the vehicle is registered as a company owned vehicle, then you will automatically need a commercial auto insurance policy.
 
Isn’t Commercial Auto Insurance Just for Fleets of Vehicles?
 
You may be thinking that this kind of insurance is only for companies that have rows and rows of vehicles but that isn’t always the case.
 
There are plenty of small run businesses that need commercial auto insurance such as:
 
  • Personal trainers (who don’t just work in the gym)
  • Coaches
  • Consultants
  • Construction contractors
  • Dog trainers
  • Yoga instructors
  • Salespeople
 
There are some benefits to fleet pricing in that they often offer a lower price per vehicle but that doesn’t mean small business owners won’t also benefit from commercial insurance.
 
What Does Commercial Auto Insurance Cover?
 
Like personal insurance, you can build a policy that works best for you and your business needs. You may need certain types of coverage or special liability for your business, so working with your broker you can build a policy that works for you.
 
Most commercial policies will include the following types of coverage:
 
  • Property damage liability
  • Personal injury to yourself and others
  • Vandalism
  • Theft
  • Collision coverage
  • Uninsured (underinsured) driver’s coverage
  • Towing and other labour costs in the event of a collision
  • Loading/unloading liability (for companies that are moving items like furniture and appliances)
 
How Much Does Commercial Insurance Cost?
 
As with personal insurance, the premiums you pay will depend on a variety of factors. The factors for commercial auto insurance are a little different than personal. Instead of factors like your personal driving record, they will consider things like how many vehicles you need to cover, what types of vehicles they are, how often they are being driven, the amount of distance being driven regularly, and/or the materials you’re transporting
 
You can work with your broker to make sure you’re getting the best coverage you need for your business. They can build a policy where you know that you will have the right amount of coverage in case something happens.
 
Call ICD Insurance today
 
If you own a business that relies on the use of vehicles, then getting commercial auto insurance is important. Contact ICD Insurance today and let one of our brokers design coverage that works for your business.