A commercial auto insurance policy or fleet insurance needs to be tailored to your business.
Any vehicle owned or operated by the business may put the business at serious risk financially in the event of an accident caused by that vehicle or the operator. Most business owners know the risk involved with their product and service offerings but often assume their auto coverage is sufficient.
Often, one of the first perks a business owner takes is having the business pay for an automobile.
Commercial auto insurance needs to be take out anytime the vehicle is titled to the business. It doesn’t matter the size, make or even if it is used strictly for pleasure. The business name on the title brings the business into a lawsuit in the event of an accident or personal injury. While the car may be used by the business owner’s spouse or family member exclusively, the titleholder (The Business) can be sued.
Make sure you work with your insurance professional on the liability limits covered by the policy. Taking just state minimums again may expose your business to financial risk in the event of a lawsuit or judgment higher than the state minimum. Opposition attorneys review assets in addition to coverage. You may wish to have your corporate attorney review the coverage and potential for risk as well.
Vehicle classification, motor size, use, must all be noted and will impact both premium and coverage options. Your insurance professional can work with you in determining the proper coverage and policy. It may make sense to opt for fleet insurance for your business. Your agent can discuss those options.
You commercial agent can review other coverage’s available for commercial auto insurance. Comprehensive coverage, under-insured motorist, medical payments and others may be available. Design a policy and coverage with your agent that provides adequate protection and minimizes the exposure and risk for your small business.
Don’t assume you have good coverage without having a conversation and review with your commercial agent.