As a small business owner, you need all the protection you can get to keep your company running, even in the face of challenges. And if your business involves driving people or expensive equipment around, then a commercial auto insurance is a no-brainer. If you have some doubts about the status of your business and whether it needs commercial auto insurance, then this article was created specially for you. Let’s get into it
Who needs commercial auto insurance?
If, at your business, vehicles are used predominantly for personal transportation with a little bit of business use mixed into it, then your personal policy should provide enough cover. However, you need commercial auto insurance if:
1. Your vehicles are registered as commercial
This goes without saying, really. If your company has a vehicle that’s registered as a commercial means of transportation, or if the vehicles carry a commercial license plate/tag, then you need commercial auto insurance. Businesses involved in trucking and delivery services are the most prominent in this class.
2. You transport heavy or expensive equipment for work
Similarly, businesses that need to move heavy (or expensive) equipment around for work. For instance, your company specializes in home electrical repairs and your workers need to carry their tools around in a car. In this situation, even if the car being used for the transportation is a personal vehicle, the company is still required to insure it.
3. You travel far and frequently for work
If your workers need to travel far distances for work and they make these trips with a personal or company car, a commercial policy is required to protect your business. This applies to companies with salesmen or those that require workers to restock shelves frequently or visit job sites/store locations regularly.
4. You transport people or goods for cash
The biggest examples here are taxi businesses, ride-hailing agencies, and delivery companies. Pretty much any company whose service involves the transportation of people or valuables requires commercial auto insurance.
Tips to reduce your auto insurance premiums
By now, you should know if you need to start the search for commercial auto insurance for your company or not. If you’re in the market for auto insurance coverage, here are some tips to ensure you don’t pay over the odds for your monthly premiums.
- If you overestimate how many miles your vehicles travel or make similar mistakes while filing for insurance, you may end up over-insured. Also, don’t pay for extras you won’t need. Both these situations can be avoided by working with a commercial insurance specialist.
- You can shave some dollars off your premiums by paying annually instead of monthly. This means a bigger expense upfront, but since you’ll end up paying the entire amount in the first place, you should consider taking advantage of the discount.
- While hiring drivers, opt for people with years of experience and clean records; insurance companies often consider this while calculating premiums. Additionally, make sure your vehicles are in optimal condition, and put company guidelines in place to help your workers make the right choices while driving a company car.
In conclusion, securing commercial auto insurance for your business offers several advantages, and if you play your cards right, you won’t have to pay too much in premiums. It is also noteworthy that some commercial auto insurance policies are tax-deductible, and you can reduce your tax obligations even as you protect your company against the interruption that accidents and lawsuits often cause.
If you’d like to speak to an expert about your company’s auto insurance needs, we have a specialist on hand to answer all your questions and provide professional insight. All you have to do is follow this link to book your private consultation.
