Small Business Auto Insurance

Small business auto insurance is one of the most important investments you can make in your company. Whether you use automobiles, vans, trucks or other vehicles on a constant basis or you simply use them once in a while for business travel, protecting them from harm should be one of your biggest business priorities.

Auto accidents can happen at any time. If you use your vehicle to travel to a workshop, seminar or convention for example, and you have an accident, without the right types of business auto insurance you may find yourself facing large bills that your company cannot afford. If your company relies on vehicles to conduct regular operations – a taxi cab for example, a florist delivery van or an over the road 18 wheeler truck – losing the vehicle to theft, natural disasters or auto accidents could financially ruin your company. You can prevent these risks and potential disasters by carrying the right types of small business auto insurance.

  • Liability Insurance – Liability insurance is mandated by law in most states. This insurance helps protect other people if your business vehicle causes an auto accident. When you or one of your employees is at fault for an auto accident that involves other people and other vehicles, your liability insurance will pay for the other vehicle’s repairs and it will pay for the medical treatment that victims might require.
  • Bodily Injury – Bodily injury coverage is the portion of your liability insurance that pays for people’s medical bills and related expenses. When you cause an auto accident while driving for business purposes, your bodily injury insurance will pay for emergency medical care, hospital stays, recovery expenses such as physical therapy, and any ongoing or related medical treatment that the victim’s doctor feels is necessary. When applicable, the bodily injury portion of your coverage also pays the victim’s lost wages, pain and suffering, and funeral expenses if they perish in the accident.
  • Property Damage – The property damages portion of your liability insurance takes care of the cost of repairs. When you cause an auto accident, the other vehicle may be damaged or destroyed by the event. Your property damage coverage pays to have that vehicle fixed or replaced if necessary.

Medical Payments – Medical payments is small business auto insurance coverage that can be extremely useful for businesses that carry passengers. This insurance pays for the cost of medical care and related expenses for the driver of your vehicle and all passengers that are in your vehicle at the time of an auto accident. This insurance provides protection regardless of who is at fault for an auto accident. It’s not available in all areas however, so be sure to contact one of our licensed representatives to determine whether it is an option for your small business auto insurance policy.

Physical Damage Insurance – Physical damages insurance provides direct protection for your vehicles themselves. Whether you have a company car, delivery van or transportation truck or other vehicle that you use for business purposes, this can help prevent losses. It is extremely useful to carry this coverage if you lease your business vehicles, or if you are still paying off the original finance loan because it provides you with the most protection from loss.

  • Comprehensive Physical Damage Protection – Comprehensive damages protection provides you with insurance coverage against the largest number of potential hazards, perils and events. It excludes coverage for collision or roll over events. For example, it can pay for the cost of repairs if a tree limb damages your vehicle in a storm. It can also provide you with coverage if your vehicle is stolen, vandalized, broken in to or otherwise harmed.
  • Collision Damage Protection – Collision damage protection is insurance for those times when your business vehicle collides with another object, or is damaged due to overturning. If for example, your company tow truck backs into a telephone pole, collision damage protection will pay for the cost of repairs.
  • Specified Peril (CAC) – Specified peril insurance is also known as CAC. This stands for Fire and Theft with Combined Additional Coverage. This small business auto insurance does not provide protection for collisions or roll overs, and it is limited to protecting you from only those specific perils that are listed on your insurance policy.

Uninsured or Underinsured Motorist – Despite auto insurance laws in the United States, some people still do not carry basic liability coverage. If one of these uninsured motorists causes an accident with your business vehicle, you may be left to pay the bills on your own. Some motorists carry coverage but it is not enough to pay for the full extent of the damages they inflict. These are referred to as underinsured motorist. When you carry an uninsured or underinsured motorist policy on your business vehicles, you can rest assured that the damages will be paid for even when the driver at fault is not covered.

  • Bodily Injury – As noted for Liability insurance.
  • Property Damage – As noted for Liability insurance.
  • Collision Deductible Waiver (CDW) – When you carry bodily injury coverage on your uninsured or underinsured motorist policy, you can get a collision deductible waiver so that you do not have to pay your standard deductible when making a claim.

Other Important Commercial Auto Insurance For SMALL BUSINESSES:

  • Rental – When your business vehicle is not usable because it needs repairs after an auto accident, rental insurance can pay for the cost of a temporary replacement.
  • Towing – If the auto accident is severe, your vehicle may need to be towed away to the repair garage. Towing insurance pays for this added accident expense.
  • Accessories (Ex: mileage meters, navigation units, radios) – Many business vehicles have extra equipment installed or mounted. A taxicab has a mileage meter for example and a delivery van may use GPS navigation units to quickly locate pick up or drop off locations. Accessories coverage can be added to your small business auto insurance policy so that these devices are paid for when they are damaged or destroyed in an auto accident.