For most businesses, an auto is right up there on cost for assets a business may own. If your business owns or is on the title of an auto, chances are very high you need commercial auto insurance.
Like any business coverage, this policy will take into consideration who is operating the auto. A sole proprietor is apt to be insuring fewer drivers; therefore it’s likely the premium would be far less than another small business that has multiple drivers.
The number and types of autos as well as purpose and miles driven will all come into play. Remember, it is imperative to work with your licensed insurance professional in determining the proper coverage limits. In addition, it’s possible that certain other types of insurance or coverage may be warranted to protect the business.
Auto liability limits may need to be increased as well as adding cargo or transport coverage. Will you be transporting clients on a regular basis? Are your autos equipped with refrigeration units? Carrying tools or other expensive equipment which could be damaged or stolen? Is the vehicle expected to be driven long distances on a regular basis? Do you need hired and non-owned owned coverage for rented autos or employee autos being used on a regular basis for business?
Push your licensed agent to explain coverage and more important, exclusions in the commercial policy. Make sure third party injury and medical payments exceed the standard claims for your area.
Once a policy is presented, take some time to read and understand it. Shop it if you feel you should, just make sure to give the licensed agent your working with a last look opportunity if cheaper coverage is found. Determine whether action needs to be taken if employee’s driving records are forcing your premiums to go higher. Work with your licensed insurance professional through the process in determining the appropriate coverage needed to best protect your business, your employees, and the assets of your business.