Just like with personal cars, any vehicles owned or operated by a business or its employees must be properly insured. For commercial purposes, it pays to have more coverage than necessary rather than not enough coverage. The costs of medical and legal fees associated with accidents can be large enough to wipe out a small business if not adequately covered.
Any vehicle that is used to perform tasks related to business activities (other than commuting) needs commercial auto insurance. Such vehicles may include cars or vans used for transporting goods or people, trucks or trailers used for hauling tools and equipment, vehicles that drive from jobsite to jobsite etc. Small business owners or employees may use their personal cars to perform work tasks, which would also require commercial auto coverage; a personal auto policy will often exclude any claims made in which the car was used for business purposes.
Every business that owns or operates vehicles, particularly large fleets, must purchase commercial liability insurance. But this coverage only protects third parties and will not cover your business’ expenses. The following is a list of commercial auto coverages that businesses should consider purchasing:
· Liability coverage: Covers medical and legal expenses associated with third party claims of bodily injury and property damage.
· Collision coverage: Covers the cost of repair or replacement if covered vehicles are damaged or destroyed in an accident.
· Comprehensive coverage: Covers the cost of repair or replacement if covered vehicles are damaged or destroyed due to fire, theft, vandalism or severe weather.
· Medical expense coverage: Covers the cost of necessary medical treatment following an accident.
· Uninsured/underinsured motorist coverage: Covers repair/replacement and medical expenses following an accident with a driver who is uninsured or underinsured.
When purchasing commercial auto insurance, businesses must consider the number and type of owned vehicles, the number of employees using those vehicles and the business’ ability to pay large sums in the event of an accident. Your independent insurance agent can evaluate your business’ insurance needs and help you select the appropriate coverages. Any individuals who freelance or consult may need to purchase their own commercial auto insurance if they use their personal cars to perform work-related tasks.
Business-owned vehicles need just as much protection as brick-and-mortar buildings. Call Lancette Agency at (651) 264-1230 for more information on Minneapolis business insurance.