Commercial auto insurance needs to be specific to your business.
Most business owners know the risk involved with their product and service but often assume their auto coverage is sufficient. 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.
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. Even if the car is used by the business owner’s spouse or family member exclusively, the titleholder (The business) is may be sued. It’s important to review driving records of those who may be driving your vehicles.
Obviously, vehicle classification, motor size, use, must all be noted and will impact both premium and coverage. Work with your insurance professional in determining the proper coverage and policy. It may make sense to opt for fleet insurance for your business.
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. We often see business owners assuming way to much risk in having minimum coverage in place. Work with your agent and perhaps your corporate attorney to review the coverage and potential for risk. We often see business owners assuming way to much risk in having minimum coverage in place.
You insurance professional will review other coverage’s available for commercial auto insurance. Comprehensive coverage, under insured motorist, medical payments and others may be available. Together, design a policy and coverage that provides adequate protection and minimizes the exposure for your small business. Don’t assume you have good coverage without having a conversation and review with your insurance professional. Make sure to review this insurance annually, or when any changes occur, including adding or dropping a driver.