Most business owners would see to it that their business is protected from different types of risks. Business vehicles that causes an accident can put a business under a lawsuit from the people injured in the accident. This makes it necessary for businesses to get commercial auto insurance. Business owners looking to purchase business insurance should consider the items listed below.
Every vehicle the business owns should be under the business name, whatever its size, kind, or the purpose that it is being used for. The business, or the title holder, can be sued in case of an accidents. This will bring your business to court. If you don’t want issues related to the validity of your insurance coverage, then you should not put any other title on it except your business name.
You can choose between the basic limits or high insurance limits which can reach up to millions of dollars, which are offered by insurance companies. Your business can lose plenty of assets if your insurance coverage is basic only, if an accident caused by one of your vehicles leads to the death and injury of many. If you take the high insurance limit, then you can protect your assets in the event of an auto accident that leads to death or injuries.
If you don’t want to void your insurance coverage, then you need to classify your commercial vehicles properly. If your insurance coverage is voided, you will have a useless policy and puts your business at the risk of losing assets if it gets involved in an at fault accident. You need to be careful in this respect since similar types of vehicles can have different classification. For example, if an electrician uses a truck, it is not classified in the same category as a truck used as a dump truck. Since they belong to different classes then their premiums are not the same.
Commercial auto insurance coverage is required for automobiles that are titled under a business. These commercial vehicle include limousine services, delivery services, food services, and all other types of automobiles.
Depending on the kind of business you have you can get basic auto liability or high auto liability. It also includes uninsured motorist coverage which are the limits the insurance company will pay people riding your business vehicle who get injured in an accident caused by an uninsured motorist. You can get other coverage depending on your business.
Optional commercial coverage include physical damage coverage where the insurance company pays for your vehicle which was damaged by fire, flood, theft, or other risks. Physical damage coverage also includes damages caused in a accident by non moving objects like walls, posts, and others.