If you are a business owner you would want your business to be protected from risks. If you own vehicles used for your business, it is possible that this vehicle can cause an accident and this can put your business in jeopardy of a lawsuit. To protect the business from these events, they should get commercial auto insurance. Business owners looking to purchase business insurance should consider the items listed below.
Every vehicle the business owns should be under the business name, whatever its size, kind, or the purpose that it is being used for. In the event of an accident, the title holder, which is the business, may be sued. The entire business then is brought in a legal proceeding. If you don’t want issues related to the validity of your insurance coverage, then you should not put any other title on it except your business name.
There are different liability limits offered by insurance company from the basic limits to the high insurance limits which amounts to millions of dollars. Your business can lose plenty of assets if your insurance coverage is basic only, if an accident caused by one of your vehicles leads to the death and injury of many. If you want to void this situation, then you should take the high insurance limit especially if your vehicles face high risks of accidents.
Each commercial vehicle has a correct classification and if you don’t classify your vehicles properly then your insurance coverage can be voided. If your insurance coverage is voided, you will have a useless policy and puts your business at the risk of losing assets if it gets involved in an at fault accident. Even if you have similar vehicle, they may have different classifications according to their use, so you need to be careful in this. Trucks used by electricians and trucks used as dump trucks, though the same trucks will have different classification. Since they belong to different classes then their premiums are not the same.
If you have vehicles under your business, then you need to get commercial auto insurance coverage. Limousine services, food services, delivery services, and other types of vehicles are examples of automobiles used for business.
As was mentioned above, businesses can have basic or high auto insurance liability and your decision can depend on the type of business you have. If your vehicle gets in an accident caused by an uninsured motorist and your employees riding the vehicle gets injured, then the insurance company pays the uninsured motorist coverage. You can get other coverage depending on your business.
Your business can get optional commercial vehicle coverage like physical damage coverage for vehicles damaged by fire, flood, theft, and other risks. Damages caused by non moving objects like posts or walls in an accident will also be paid by the insurance company.