Business auto insurance can be a good option for companies that transport goods or services, and it can also protect businesses from losses that may be preventable. However, coverages may vary from state to state so if your business uses vehicles regularly, you need to insure this certain insurance coverage is in your budget. Below we detail who needs commercial auto insurance and why.
A Company That Transports Goods
A business that transports goods needs several types of insurance, including business auto insurance. Standard business auto insurance covers a business’s own vehicles and provides liability coverage. However, a business with multiple vehicles may want to consider fleet insurance. The types of coverage will vary, depending on the type of transportation used.
The Work Involves Inherent Risk with Auto Vehicles
Safety in the workplace is a critical aspect of any profession, and work involving auto vehicles is no exception. Employers are responsible for the safety of all employees and visitors, including drivers. Taking all necessary precautions is essential for preventing accidents and injuries on the job; there are many ways to ensure workplace transportation is safe so it’s best to make these points clear to the whole team.
A major source of workplace risk overall is auto accidents. These accidents can cause extensive expenses and liability, and can also lead to injury and death among employees. These risks impact all aspects of a business, which is why it is important to take the time to prevent them and cover yourself so your business is not the one who takes a loss. Employers can take steps to minimize the impact of auto accidents on their company by educating their employees and ensuring they stay within the explicit rules of operation, says Biscayne Risk.
A Business Who Uses a Vehicle to Offer Services
Business auto insurance is an essential part of any company’s legal protection, as it covers any vehicle used for company purposes. Different types of coverage are available for different types of vehicles. Depending on the features of the vehicle, the safety rating, age, theft rating, and more, a business auto policy can be tailored to meet the needs of the company. It may also cover the personal vehicles of company employees.
Employees Operate Vehicle Under the Company’s Name
A basic business auto insurance policy will not cover the actions of employees who operate a vehicle in the company’s name. The best protection for employers is to purchase non-owned and hired automobile liability coverage. Non-owned and hired auto liability coverage pays for damages that exceed the limit of an employee’s personal auto policy.
Business auto insurance for employees who operate a vehicle in the company’s name can protect an employer’s assets from costly lawsuits. In addition, many employers provide company-owned vehicles to trusted employees. However, if an employee does not have the proper insurance, the employer will have no way of knowing that they are properly insured in case of an accident.
Business auto insurance for employees who operate a vehicle under company’s name should also include coverage for the employee’s family. This coverage is not mandatory but is worth considering. In some cases, it may even extend to spouses and children. A good way to determine whether your business auto insurance covers your family’s use of the vehicle is by checking with your insurance broker.