Some businesses need wheels to do their jobs fully. This is especially the case for companies that specialise in moving, construction, transportation, and even instances where brief car or truck rides are necessary to get to work sites. Vehicles being used for these purposes aren’t covered by standard car insurance when the work clock is ticking. The cost of damages can be increased as well since you are dealing with business assets and can be damaging to the business as a whole. As the CEO of your company, the responsibility that you and your vehicle(s) have good commercial insurance coverage falls on you. This article includes the basics and some of the finer details that every CEO should know about commercial car insurance and how it would fit their business.
Commercial Car Insurance Basics
Much like standard car insurance, commercial car insurance is required by law in most states. The reason is the same –liability purposes. As previously stated, business liabilities are greater than personal liabilities –so coverage, and more of it, is always required. As a CEO, your employees and vehicles can either cause damage or be damaged. There are respective commercial auto coverages for each kind of damage you or your employees will encounter when using the company vehicle. These coverages are:
- General liability – This basic and mainly required car insurance is usually what most people refer to when talking about car insurance in general. Suppose you or an employee are at fault for an accident while on the road; it’s a legal obligation that you cover the damages. Liability coverage insures you for any injuries caused to another driver or passengers and damage done to another’s car or property in the accident.
- Collision loss – At the same time, you may be wondering if your insurance covers damage you caused –what about the damage your company car sustained? This is where collision loss coverage comes into play. The best part about collision loss is that it covers you regardless of fault.
- Comprehensive loss – With at least one company vehicle in your care, you want to make sure it’s covered during off-time. Comprehensive loss commercial coverage does this for any vehicle your company has parked or stored on company grounds or garages. This includes damages from both weather and criminal hazards.
Other Commercial Car Insurance Types
The previously mentioned commercial car coverages are the required ones and the most recommended for CEOs and businesses alike to run. At the same time, there are other types of commercial car insurance that may also be required or wise to invest in:
- Workers’ compensation – As a CEO, you’ll also want your employees to be insured if they are injured in an accident while using a company vehicle. Workers’ compensation may be required for this exact reason. If an employee is injured on the job, responsibility for covering the injuries and any lost wages is up to the business.
- Uninsured motorist coverage – This coverage may also be required depending on where your business is located and operates. While car insurance is required in most states, there are some drivers that illegally forgo it. If they were to cause an accident with you or one of your drivers, they would be unable to cover the damages and injuries if they occur. An uninsured motorist steps in to do just that. Again, this may or may not be required of you.
- Rental reimbursement coverage – If your business rents rather than owns vehicles for certain jobs, then rental reimbursement coverage will help cover the cost of damage and replacement for rental cars since they often have underlying payments that can be compromised if it becomes severely damaged or totalled.
How Much Commercial Car Insurance Costs
The exact average of how much commercial car insurance costs is difficult to narrow down because everyone pays different rates for car insurance. Another layer of complexity is added when you realise that all businesses operate and are different as well. Factors that determine how much a commercial car insurance policy will be include company size, number of vehicles and employees, types of vehicles, employees’ driving records, and amount of desired coverage. One thing is for sure, though. Commercial car insurance does cost more than standard car insurance. The good news is that commercial car insurance can be shopped the same way as standard car insurance. Take advantage of the several free quote calculators from both local and national insurance companies to see where you and your company stand when it comes to commercial car insurance rates –there is one policy out there for you.
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