Who Needs Commercial Vehicle Insurance?

Photo of delivery trucksThe risks you face as a business owner vary widely from liability concerns to workers compensation issues to the possibility that one of your workers could be responsible for an accident.

If you have staff members who get behind the wheel, your commercial vehicle insurance will protect your business financially in the event of incident on the road.

What Businesses Need Commercial Vehicle Insurance?

  • Freight companies and other businesses that use commercial trucks
  • Independent contractors who drive during the course of doing business
  • Any business that makes deliveries or transports goods
  • Limo services, taxi services, bus companies and other transportation services
  • If you or your staff members use a vehicle for commercial purposes, you need a commercial auto policy, as your standard personal auto policy will typically not cover you for business use of that vehicle.

The risks associated with commercial use of a vehicle, whether it is personally owned or company owned, often call for higher policy limits and different policy provisions, according to our partners at Trusted Choice.

Do You Need Commercial Vehicle Insurance?

In some cases, it is obvious that you need a commercial vehicle policy. For example, if you have a delivery service, limousine service, or a restaurant that delivers food, you know for certain that your business takes on risk each time you or a staff member drives one of your vehicles.

But there are many confusing scenarios where business car insurance is concerned. What if you use your personal vehicle to drive your kids around and to deliver cakes from your home bakery service? What if you attach a plow to the front of your truck each winter and offer snow plowing services?

It is typically a question of primary use, but you may have a unique situation to address. If you use any vehicle for business purposes, it definitely pays to talk with an agent who understands both personal and commercial vehicle insurance so you can make sure you have the right protection to meet your needs.

What Does Commercial Vehicle Insurance Cover?

Commercial vehicle policies, like personal auto policies, are primarily designed to cover your liability risks and provide compensation for damage to your vehicle. But instead of just covering your personal use of the vehicle, the policy covers you and any other person who drives the vehicle. If you have employees who use their own vehicles for work related to your business, you need to make sure your commercial auto policy covers those employees and their vehicles.

A typical policy will include:

  • Liability: Covers expenses resulting from an accident you or an employee causes, including:
  • Bodily injury to another person
  • Property damage to another person’s property
  • Legal fees
  • Medical payments: Covers hospitalization and other medical expenses for you or your employees, and any passengers in your vehicle
  • Uninsured/underinsured motorist: Covers bodily injury and property damage you or your employees and passengers incur if an uninsured or underinsured motorist caused the accident.
  • Collision coverage: Covers your vehicle when another object or vehicle causes damage.
  • Comprehensive coverage: Covers “other than collision” perils such as weather damage, theft and vandalism.

If you are not sure whether you need commercial vehicle insurance, or what kind and how much you need, your best bet is to work with one of our knowledgeable independent agents who specialize in business auto insurance. We can advise you on the right coverage for your specific business needs.

Learn More About Commercial Vehicle Insurance >>

Looking for Affordable Business Insurance?

How to Trim Costs and Find Deals

Office workersBusiness owners are always looking for ways to improve their bottom line. In a tough economy, especially, belt tightening measures can be the difference between survival and failure of a business. If you are eyeing your insurance coverage for places to trim expenses, you will find some opportunities; it just takes a bit of hunting.

Every commercial operation, from large corporate entities to very small shops, needs commercial coverage. The best way to find deals and get the best possible rates on your business insurance is to work with our independent agents in the Trusted Choice® network.

We have access to multiple companies and can find the most affordable business insurance plan for you. And these carrier partnerships allow independent agents to serve all of your business insurance needs, from property and casualty insurance to directors and officers coverage to workers comp. Contact one of our agents today to get started.

Digging Deeper to Find More Business Insurance Discounts

As a business owner, you have a range of opportunities to reduce costs through proactive efforts on your part.

One of the most critical steps you can take is to work closely with an independent agent who will devote the time to fully understand your business needs and risks. The process is similar to working with an accountant who knows where to find deductions you wouldn’t necessarily think of on your own.

Our independent agents in the Trusted Choice network will fully get to know your business and perhaps visit your facility, if appropriate, to learn how you operate. Your agent may identify several additional ways to cut corners on your insurance bill while still getting the highest quality coverage and maintaining an optimal risk management program.

For example, you may be able to get discounts by improving your company’s overall safety and security and remaining claims-free. Some of the ways you can do so include the following:

  • Develop a worker safety training program
  • Install security cameras and a building security system
  • Install a fire sprinkler system and make sure you have accessible, functioning fire extinguishers
  • Strengthen your company firewall against cyber-crime
  • Reduce risk in your daily operations through safety inspections
  • Improve fraud awareness; hire a forensic accountant to train your senior staff on what to watch for
  • Reduce your business liability through safe materials handling, a driver safety program and other safety measures that reduce the likelihood of claims
  • Some of the measures you take to reduce your commercial insurance costs may require an investment in the short term that will yield discounts and savings in the long run. Your agent can help you to assess which safety and security measures make the most sense for your organization and will yield the best outcomes.

More about Saving on Business Insurance >>