Commercial auto insurance isn’t just for “the big dogs.” Small businesses are just as much, if not more, at risk than larger businesses because a long claim payout time could spell disaster. Particularly, employers with just a few employees shouldn’t think twice about purchasing commercial auto insurance.
In this article, we’ll go over what’s covered by commercial auto insurance, and why it’s important for small business owners. If you’re not sure whether or not your business needs commercial auto insurance, or you don’t exactly understand how it differs from personal auto insurance, read on.
What’s Covered by Commercial Auto Insurance?
As we discussed last week in “How Climate Change Could Affect the Commercial Auto Insurance Industry” commercial auto insurance greatly differs from personal auto coverage. That being said, many small business owners still aren’t sure what is covered by commercial auto insurance. So here’s a short list:
Collision Coverage
Whether bad weather or a distracted driver are to blame, accidents happen. Commercial auto coverage helps ensure that the covered vehicle is protected in the event of a collision with another vehicle or an object (tree, guardrail, mailbox, etc.). This means that small business owners don’t have to worry about paying for a damaged work vehicle out of pocket; the work will be covered under the insurance policy (subject to any applicable deductible).
Comprehensive Coverage
Vandalism, fallen trees, and even theft aren’t always covered by personal insurance. But they are covered by most commercial auto insurance policies. This means that your vehicles are covered, even if they’re left out at night.
Loading and Unloading Coverage
Covered vehicles can be used to transport heavy, expensive work equipment. And this unloading and loading process can be covered under a commercial auto insurance policy. If unloading or loading up a covered vehicle results in an injury to an employee or bystander, or an accident involving another vehicle, the business will typically be covered under the commercial auto insurance policy.
Medical Coverage Payments
This doesn’t just cover the business owner. Medical coverage for commercial auto insurance also covers employees who are injured in a collision. This means that all those injured at your company can expect proper medical attention to be covered under the insurance plan.
Uninsured Motorists
Often covered under personal auto insurance as well, uninsured motorist insurance ensures that your business won’t have to pay property or injury bills if you’re struck by another driver who doesn’t have insurance.
Why Small Businesses Need Commercial Auto Insurance?
Commercial auto coverage is designed to protect businesses of all sizes from litigation related to automotive incidents. Whether the incident is an auto collision, an unloading accident, or a new work truck stolen from the parking lot, commercial auto insurance is there to help pick up the pieces. But why do small businesses, in particular, need commercial auto insurance?
Small businesses have a ton of expenses. Employing workers with fair wages, excellent benefits, and stability is expensive. But making sure that your workers and equipment are protected financially and medically is a no-brainer.
Commercial auto insurance is an affordable monthly expense that ensures your business is covered in the event that you’re sued by an uninsured motorist or jaywalking citizen. It helps ensure that your business can keep showing up at a job site after a vandal breaks an expensive piece of covered equipment. And it helps ensure that your employees’ medical expenses are taken care of after a work truck is T-boned crossing an intersection.
While nobody wants to experience any of these incidents, the truth is that the future can be unpredictable. Even the most careful among us get into an accident every now and then. But protecting the business by minimizing the risk with a commercial auto insurance policy is an affordable and cost-effective way to keep employees at work, vehicles on the job, and jobs on schedule.
Learn More about Commercial Auto Insurance
Whether you’re looking to find the right amount of coverage for your small business, or you’re simply interested in recent trends in commercial auto insurance, the AmTrust blog has you covered. Check out our recent article, “Top 3 Industries in Need of Commercial Auto Coverage” to learn more.