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You count on a commercial auto policy to protect your business from liability risks that could be incurred when you or an employee gets behind the wheel for business purposes. To get the most from your commercial policy, you need to know what it covers-and more importantly, what it doesn't.
When you set up a commercial policy, it is important to ensure that every potential driver who might get behind the wheel is listed on your policy. As new employees join your company, you will need to contact your insurance agent and make sure they are added to the policy. If anyone who is not listed as a driver gets behind the wheel, you run the risk of being denied coverage in case of an accident. A commercial auto policy can and will protect all of the drivers in your business, but only if you are sure they have been properly added as insured drivers.
There are several types of commercial auto policies. Under an individual policy, a specific car owned by the business is covered for liability as well as other options you may choose. When you have a fleet policy, you will have a single policy that covers every vehicle owned by the company. Much like adding new drivers, you should be certain to add and remove vehicles as needed to keep your policy up to date.
A commercial insurance policy covers you for property damage and injuries to others that occur as a result of the actions of a covered driver. That means that if your employee is found to be at fault in an accident, the commercial auto policy will kick in and prevent your business from becoming the target of a lawsuit for damages. Why does this matter? Because if you don't have the coverage you need, your business could face financial ruin. When a business is involved, lawsuits are more likely; injured parties see the likelihood of a higher financial payout. Your commercial auto policy protects you from this sort of lawsuit, providing coverage for the liability you take on when you let employees drive your vehicles.
A commercial auto policy also protects you from damage that can be done to the vehicles you own in the course of business use. Vehicles that are on the road more often-as many business vehicles are-are at a higher risk of being damaged. Your commercial policy protects you from errors made by your drivers, theft, vandalism, and other damage.
While you are careful in choosing the people you hire, everyone makes mistakes. Unfortunately, when someone is driving a vehicle owned by your company, you can be held responsible for those mistakes. Commercial auto insurance makes certain that your business won't face a disaster due to an accident.