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Purchasing Commercial Auto Insurance
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What to look for when purchasing commercial auto insurance - Pie Insurance

What to look for when purchasing commercial auto insurance - Pie Insurance

Purchasing commercial auto insurance for your small business

Driving is often a requirement for many occupations, including those working in transportation, delivery, and sales. While being on the road is seen as a positive for many workers, the truth is that it comes with inherent risks. Workers who drive more than the typical commute to and from the workplace have a higher chance of being in an accident.

As a small business owner, it’s impossible to prevent a motor vehicle accident from occurring. However, having the proper insurance in place can help protect your employees and company should an incident occur.

commercial auto insurance plan is often the best option for organizations where staff either operate a company vehicle or drive their vehicle for work. With this type of coverage, damages to the vehicle are normally covered.

Let’s take a closer look at commercial auto coverage and how it can benefit your company.

What is commercial auto insurance?

A commercial auto insurance policy is a type of coverage that protects vehicles used for organizational purposes. While most people instantly think of large company vehicles like semi trucks and transportation vans, even personal vehicles that employees use fit under the policy.

If an employee were to have an accident while driving a company vehicle, the commercial auto policy would cover items such as property damage and injuries resulting from the crash.

What coverages fall under a commercial auto insurance policy?

While the policy limits may vary slightly depending on where you purchase your commercial auto insurance, most will offer the same protection.

These coverages include:

  • Liability coverage
  • Collision coverage
  • Medical expenses for anyone injured in the accident
  • Uninsured or underinsured coverage
  • Property damage coverage

Does your company need commercial auto insurance?

If your company requires employees to drive a company vehicle or their car as part of the job, you’ll need commercial auto insurance. Without the coverage, you’re opening your company up to potential financial liabilities.

3 factors to consider when purchasing commercial auto insurance

Now that you understand how commercial auto insurance can protect your company and employees let’s look at a few factors to consider when purchasing coverage.

Understand the risks associated with your business

Depending on the type of business you currently own, employees could face more risks that make them more likely to have a car accident. For example, truck drivers and other transportation workers that drive long hours or during unconventional times of the day are more likely to drive while tired.

Encouraging your drivers to take frequent breaks and pull over when necessary is important for reducing the risks of accidents on the road.

Selecting the right amount of coverage

It can be tempting to select the policy with the lowest payment. However, doing so can leave your business vulnerable during an accident. Consider purchasing a commercial auto insurance policy with higher limits to help avoid the risk of needing to pay-out-of pocket if there is extreme damage to the vehicle, or a person is severely injured.

Proactively reduce expenses by promoting a culture focused on safety

As mentioned earlier, it’s impossible to prevent all vehicle accidents from happening. However, by promoting a culture focused on safety, you can help keep your employees safe while driving.

Here are a few ways you can help your team stay safe when behind the wheel:

  • Perform routine maintenance on all company vehicles
  • Encourage drivers to take frequent breaks when traveling long distances
  • Stress safety is more important than arriving at a destination on time
  • Hold regular training on safe driving practices

Thinking about auto insurance for your business?

Owning a business comes with risks, as does operating a vehicle. Together, you’re facing greater risk as a small business owner. Even the safest driver can find themselves in circumstances out of their control, and no one wants to be stuck paying the cost of repairs from their own pocket.

Commercial auto insurance can help you avoid this outcome and keep your small business running smoothly, even when accidents happen. Need commercial auto insurance for your small business? Get a quote!

Thanks for reading! Please note that this content is intended for educational purposes only. As best practices change regularly, you should refer to your trusted advisor for specific counsel.