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Did Your Business Drive Off With the Right Commercial Insurance Policy?

Brian Neese

April 02, 2014

A commercial insurance policy can be incredibly important for your small business. 

If vehicles are used in conjunction with your business, a personal policy won't cover events that take place under that heading.  This can easily turn into a horror story for an accident that takes place while the clock is running.

Hence, commercial auto insurance is essential if your business uses vehicles in any way.  This is where the simplicity can seem to end, though. 

Follow along as we look at this seemingly complicated area of insurance.

From Pizza to Snow

Whether it's for truck driving, snow plowing, or delivering some tasty pizzas, a commercial auto insurance policy can cover just about any work-related auto need.

Variety is the name of the game in this area of commercial insurance, as there can be a seemingly dizzying array of choices. 

Liability, property damage, comprehensive, uninsured motorist, personal injury protection, medical payments coverage, and others combine with use-specific commercial auto insurance types such as van, snow plow, dump truck, tow truck, and box truck insurance.

The key is to look at how vehicles are integrated into your business. 

Is it just a few trips each day for one employee, or an everyday occurrence?  Will a lower policy limit work, or will you need a full $1 million in coverage to protect your high-profile business against a number of threats if something should occur?

Do you need a commercial car insurance policy?  

As long as vehicles are used for business purposes, the answer is certainly "yes."  Carefully identify your needs in a policy to sort through your options.

What Will Your Premium Look Like?

Typical costs for a commercial car insurance policy can resemble a personal policy - or something multiple times that amount.  Generally speaking, there are no "typical" costs to rely on for premiums.  It truly is a case-by-case basis.

One of the most important factors to premium costs is found in the nature of your small business. 

Naturally, higher-risk industries will command higher rates to guard against the various liabilities that can arise if something goes wrong.  Frequency will play a factor as well, as occasional use of a vehicle or vehicles will lower premiums compared to businesses that have consistent vehicle use.

Several others will come into play - such as the types of vehicles involved.  The applicant's driving record is not a primary factor, but can easily make a difference, unfortunately, in less-than-optimal situations.

As with a personal policy, look for discounts and make sure you are getting the coverage you need; overdoing it can be amplified at the expense of your budget. 

Look at your options carefully before getting the protection that will help build your company.

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