Are you a business owner on the move? Or does your business require you to hit the road daily to keep the supply chain smooth? Then you must be aware of how dangerous highways and byways can get. But that is where business auto insurance steps in to save the day.
Don’t know what that is? No problem, we got you covered. In simple words, it is an insurance policy for business vehicles. If you already don’t know, personal car insurance won’t give you any coverage if you are using a vehicle for business purposes.
Besides, having business auto insurance is also crucial for many legal compliances. So let’s look at how commercial car insurance makes your business road-pro in many ways.
What Is Business Auto Insurance?
Business auto insurance is an insurance policy that provides coverage for commercial vehicles like cars, trucks, vans, and similar automobiles. Such insurance does offer coverages for motorized vehicles that are leased, hired, or even employee-owned but are used for business purposes.
None of these facilities are available on personal auto insurance. And the space for customizing the policies is huge.
Here are some major types of commercial vehicle insurance that you can avail of.
- Liability insurance: Most common business auto insurance that provides coverage for bodily injury and property damages.
- Collision insurance: Covers the cost of repair and replacement for a covered vehicle that got damaged in a collision, regardless of who is at fault.
- Comprehensive insurance: Provides coverage for non-collision damages such as theft, vandalism, fire, or natural disaster.
- Uninsured/ Underinsured Motorist Insurance: Provides protection to the business and the drivers in case of an accident.
- Medical payment coverage: Insurances like MedPay will cover the medical expenses of the driver and the passengers of the covered vehicle, regardless of fault.
- Non-owned auto insurance: Provides coverage for the vehicles that the business uses but does not own.
In case you live in Illinois and are not sure about the policy prices, you can easily check the car insurance quotes in Illinois online.
Road-Proof Your Business With Commercial Vehicle Insurance
Having business auto insurance can save your business from a range of adversities it might face while hitting the road.
Here are some of the major reasons for you to go for business auto insurance if your business is dominantly dependent upon commercial vehicles.
Adds Financial Protection For Your Vehicles
Business car insurance policies ensure that your business vehicle is protected against potential losses or liabilities resulting from accidents, thefts, or damages to the car while using it for business purposes.
Depending on the policy, it will also cover the cost of repair, replacements of the vehicle, medical expenses, or property damage to minimize your financial burden.
Protects From Lawsuits & Complies With Legal Requirments
If your business vehicle causes an accident, it can result in a lawsuit if the injured parties seek compensation. Business auto insurance, like liability coverages, can support you with court costs, settlement costs, or judgments that may arise.
Besides, in some states, it is mandatory to carry auto insurance if you are using the vehicle for business purposes. So it becomes a legal compliance as well.
Keeps Operations Uninterrupted
As you can not cover your business vehicle under personal auto insurance, if anything happens to your vehicle, you will be paying it out of your pocket.
If your business is vehicle dependent, you can not afford to delay the servicing and repairings due to insufficient funds, as it will only cost you more.
Having a dedicated business car insurance policy ensures that your business vehicle and driver are adequately covered, and you can minimize your downtime.
Protects Your Employees
For an automobile-dependent company, the drivers are more important than the vehicles, so a business owner looking after their safety is paramount.
With commercial vehicle insurance, you can add an extra layer of protection for your drivers by ensuring that their medical expenses are covered if they have an accident while working.
Customize As Per Your Needs
Business auto insurances are highly flexible and can be tailored to meet your business needs. You can adjust the coverage options deductibles and also adjust the coverage limits based on the size of your fleet, the level of risk involved, and the nature of business operations.
This way, your business can have a policy that adequately protects your assets and lowers the aftermath of the risks.
What Type Of Vehicles Are NOT Covered Under Business Auto Insurance?
Exclusion and limitations regarding the types of vehicles covered under business auto insurance can vary depending on state laws as well as insurance company policies.
However, here are the most common vehicle types that are excluded from the list or may require separate insurance policies.
1. Excessively heavy vehicles: Certain companies may put a weight threshold on their policies, which can exclude heavy trucks or commercial vehicles used for heavy hauling or construction.
2. High-performing automobiles: If you use high-performing vehicles like luxury cars or sports cars, some companies may not cover them under this insurance as they are often considered high-risk vehicles.
3. Off-road vehicles: Business auto insurance is made for automobiles that are mainly used on public roads. So any off-road vehicle like dirt bikes, ATVs (All-Terrain Vehicles), and RVs (recreational vehicles) might get excluded from the eligibility list.
4. Vehicles used for ride-sharing or transportation network services: You are not eligible for business auto insurance if you use your business vehicle for ridesharing services like Uber and Lyft.
These kinds of vehicles require specialized insurance coverage that is provided by the ridesharing companies.
5. Non-motorized vehicles: one of the biggest criteria for being eligible for business auto insurance is that the vehicle has to be motorized. Hence you don’t have scope for vehicles like bicycles, carts, and similar.
Final Thoughts
The benefits of getting business auto insurance are multifold, no matter if you are an SME or a large corporation. Keeping your business vehicles insured helps you have a smooth sailing-supply chain and gain employee trust.
The flexibility of these policies ensures that all your safety needs are met, and you can shield your business from on-road risks. However, thoroughly consult with your policy provider so you don’t spend more than required.
