Whether your business uses one car or a whole fleet of vehicles in your regular operations, you need to take steps to properly insure the vehicles. These vehicles may represent a significant financial investment on the part of the business, and they can be costly to replace if they are damaged or stolen. More than that, if your drivers cause an accident on the road, you may be held liable for the damage they cause. This includes property damage, medical bills, lost wages and more. Buying a commercial auto insurance policy is a great way to protect your business from the financial impact of theft, accidents, natural weather events and more. In fact, this type of coverage is often required by law in most cases.
Most states have specific minimum insurance requirements that business vehicles must meet in order to operate legally on the road. One of the more common requirements is for the commercial auto insurance policy to include a liability component. Liability coverage protects your business from liability-related losses. For example, if your driver causes an accident, the liability insurance may pay for most or all of the other party’s vehicle repairs and medical bills. This prevents you from having to pay out of pocket for these expenses. However, you will need to pay a deductible each time you file a claim.
Commercial vehicle insurance is also available to pay for your own vehicle repairs. Vehicle repairs after an accident or a bad weather event can easily tally into the thousands or tens of thousands of dollars, but insurance gives you a convenient way to pay for these damages. There are optional insurance coverages available as well to pay for personal injury, personal property losses, rental car reimbursements and more.
Your business vehicle may be a necessary component of your operation, but it also can be a costly liability for you. It is necessary to fully cover your business from all potential losses related to the ownership and use of your vehicles. Through a commercial insurance policy for autos, you can get the coverage you need and meet the legal requirements for coverage.