If your business has its own fleet of vehicles (or even one commercial vehicle that you use for business purposes), there's a good chance you need commercial automobile insurance coverage. Specifically, this type of insurance is designed to protect your business and its employees in the event of an accident (or other damage, such as vandalism or theft).
Unfortunately, there are a lot of myths floating around about this type of coverage. By having a better understanding of the realities behind these myths, you can choose the right coverage for your business with confidence.
#1: You Don't Need to Specify Insured Drivers on Your Policy
Simply having a commercial auto insurance policy isn't necessarily enough to make sure that every person who drives your company vehicle is covered. Many commercial car insurance carriers require businesses to provide names of drivers to be insured under the policy. This means that as your company hires more employees, you may need to add them to your commercial auto coverage.
#2: Businesses Are Required to Pay Premiums Up-Front
While some commercial auto insurance carriers may offer substantial discounts to policyholders who pay their premiums up-front and in-full, the reality is that you're not required to do so. If you prefer to make monthly insurance payments for cash-flow reasons, this is something any reputable insurance company should be able to accommodate.
#3: You Don't Need Commercial Car Insurance
Not having coverage when you need it is one of the worst mistakes you can make as a business owner. The reality is that if you use a vehicle to conduct any aspect of your business (whether it be delivering goods or marketing door-to-door), it is in your best interest to have commercial auto coverage. And if you're leasing or making payments on your commercial vehicle, you might even be required by your lender to carry this type of insurance.
#4: You'll Waste Money if Your Business is Seasonal
If your business is seasonal, you should be able to reduce or even suspend coverage during your "off-season" so that you're not paying for auto insurance coverage when you don't actually need it. Your best bet is to talk to your agent and find out what level of coverage is best for your company's needs at various times of the year.
Having commercial auto insurance is a great way to protect not just your company vehicle, but your valued employees as well. If you haven't taken the time to shop for coverage yet, now is an excellent time to start requesting quotes.