How Commercial Auto Insurance Helps Business Owners
Having Commercial Auto Insurance on the vehicles you use in your business is extremely important. This coverage will protect you and your business in the event of an accident or if something happens to a vehicle such as it being stolen or vandalized.
There are four main components of a Commercial Auto Insurance Policy; Liability, Uninsured/Underinsured Motorist, Comprehensive, and Collision. Other coverages such as towing and roadside assistance can be added to the policy as well.
Liability coverage protects you if you or the driver of the vehicle causes an accident. The usual coverage most business owners seek is $1,000,000 in Liability coverage in order to protect themselves and their business from a large claim in the event the other party is seriously hurt or killed.
Uninsured/Underinsured Coverage is there to protect you if another party causes an accident involving your vehicle and is either uninsured or is underinsured to cover the losses sustained by you. Many people who buy insurance have the minimum coverage required by the state which might not be enough to cover the damage sustained by you. In this case, your insurance company steps in and acts as if they were that person’s insurance company in order to make you whole again. Usually, for this coverage you will pay a $100 deductible if you know who hit you but they don’t have insurance, or a $300 deductible if it was something like a hit and run.
Comprehensive coverage covers such issues as fire, theft, and vandalism of your vehicle(s) and will cover the sustained loss minus your deductible. Collision coverage comes into play if you or the driver of your vehicle causes and accident and covers the damage to your vehicle minus the deductible that you select. As a business owner you can either select lower Comprehensive and Collision deductibles in order to minimize your cost during a loss or choose higher deductibles in order to save money on the cost of the insurance.
This is an important part of your business expenses that you need to have adequately covered. A call to an insurance agent is needed if you don’t carry this coverage on your vehicles.