Commercial Auto Insurance: How to Know If You need it

Published: March 11, 2018

Updated: May 15, 2018



You definitely need commercial auto insurance if you own a business; it’s really that simple. According to the ministry of transport, if you do not have a commercial auto insurance coverage, you will be putting your business in danger. Consider it for a moment: you see tour and school buses, florist vans, tow trucks, landscaping trucks, 18-wheelers, courier services etc on the road every day. If any of them is uninsured and an accident occurs, the business will run the risk of not only paying medical cost but also lawsuit and the cost of vehicle damage.

You need to weight your options if you own a small business to determine if you need commercial car insurance. What every small business owner does is to save money, but this is not a wise move in some areas. Having an insurance cover for your assets makes the business viable to help you save money elsewhere because of course, your business cannot survive without your sales fleets and your delivery trucks.

You can save money on your free softwares and office supplies but blanket coverage on your automobiles and trucks is important. Even if it is only one vehicle you own, commercial auto insurance is compulsory if you will use it for business purposes, because you may be sued if you use your personal vehicle for business purpose and you are not protected for such purpose.

Many commercial car insurance companies will advise you to buy employment insurance so that your employees can use your business vehicles. You can save money on insurance premium by meticulously screening your employees who may have a minimum of three years safe driving record by having a zero tolerance policy and doing drug testing. Business owners are also advised to own safe vehicles instead of sport vehicles, and install air bags, car alarms, and GPS tracking in their fleet of vehicles. It is also common knowledge that your premium will be lowered by higher deductibles.

When a small business owner shops for car insurance premium for his vehicles, how will look for discounts. Multiple vehicles, non owner coverage is useful when an employee uses his private vehicle for business purposes. Seasonal coverage is used for farm vehicles, etc. Commercial vehicle insurance is similar to private vehicle insurance but the difference is the liability in the event of medical and vehicle damage. Therefore, shop around to get the best rates, but do not settle for the cheapest which may not always be the best.

Many insurance agencies allow owners of small businesses to tailor a policy to their own needs. Certainly, physical damage and liability is compulsory, but many insurance policies also cover for any eventuality which may be of benefit to small business owners particularly when natural disasters take place damaging your fleet, theft, fire and other catastrophe.

Another thing that could be of help to small business owners is bundling his insurance requirements. If for example, he is the owner of the building where he does his business, he could bundle equipment and structure coverage with commercial car coverage.

Shop around for the best insurance premiums and coverage and do not patronize the cheapest insurance policies.