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Make it Your Business to Find the Right Commercial Insurance

Adam Groff

April 29, 2014

Whether your small business has a couple of company cars or an entire fleet of vehicles, putting commercial car insurance in the driver's seat is a smart move.

From fender benders to costly collisions and every bump in between, if your business doesn't have a commercial car insurance policy, it could spell trouble down the road.

Here are just a few reasons why commercial car insurance is beneficial for your small business and its vehicles:

Insurance Requirements

Having a commercial car insurance policy for your business is the best way to make sure your drivers and vehicles are safe on the road. But, there are a number of requirements your business must meet in order to become properly insured.

Commercial car insurance requirements differ from state-to-state and cover everything from property damage to bodily injury liabilities, so it's important to research what types of coverage your business needs.

Your local DMV or commercial insurance provider can answer any specific question you might have when it comes to acquiring insurance for your business vehicles.  

In addition, if you have vehicles within your fleet that meet commercial driver's license criteria, then you're subject to federal CDL requirements for commercial vehicles and insurance.

These requirements range from hazardous materials transportation to minimum driver age limits and driver aptitude tests.

Types of Commercial Car Insurance

Ask yourself this question: do you need a commercial car insurance policy?

Well, if your employees drive vehicles registered to your business or you use a vehicle to transport goods or provide services for your business, then the answer is yes.

When it comes to coverage, there are a number of commercial car insurance policies that your business may need:

• Business Auto Insurance - This type of insurance covers businesses that derive income from the use of a vehicle for business purposes, like delivery services and salespeople. Business auto insurance covers everything from bodily injury and collision to property damage depending on how comprehensive the coverage is.

• Comprehensive Commercial Insurance - If your business owns a fleet of vehicles, then comprehensive commercial insurance is the best coverage route to take.  It covers general collisions as well as damages and losses that are a result of hail, fire, flooding, vandalism, and theft.

• Van and Pickup Truck Insurance - Van and truck insurance is a good option regardless of the number of vehicles registered by your business. It works much like business auto insurance, but comes with the added benefit of asset insurance to cover any goods or equipment that may be in the vehicle in the event of an accident.

Keeping Costs Down

No matter what type of commercial insurance you choose, insuring your small business's vehicles can become costly.

Luckily there are a couple of ways to keep costs down regardless of the number of vehicles in your fleet.

The best way to keep your insurance rates low is by monitoring your employees' motor vehicle driving records on a regular basis.

If one or more of your employees have poor driving records, it could increase your business's rates drastically.

Additionally, if your business has two or more vehicles in its fleet, then you might be eligible for multiple policy discounts. Many commercial insurance providers offer discounts for businesses with multiple vehicles as long as all driving records are clean.

When it comes to your small business practicing safe driving, commercial car insurance is the best route to take.

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