Many small business owners falsely believe commercial auto insurance is only for large companies with a fleet of vehicles. The truth is that commercial auto insurance can be appropriate and cost effective for small businesses as well, with only one or two vehicles.
Why do businesses need commercial auto insurance?
Personal auto insurance is designed for personal use, and certain business usage may be excluded from coverage on a traditional personal auto policy. A business owner should be concerned about having adequate coverage and high liability limits on vehicles driven by employees, in order to protect the assets of the business and the financial future of the company. In situations where the driver of a commercial vehicle is at-fault, legal settlements are often higher for personal injuries and other damages.
Should a pizza delivery guy or gal have commercial auto insurance?
Anyone delivering pizza should check with the owner of the business to see if the company has “Hired or Non-Owned’ insurance coverage for employees who drive their own vehicles while on the job. This coverage usually only covers liability, so it’s important to ask the employer if there is additional coverage for physical damage to personal vehicles damaged while delivering pizza.
Is commercial auto insurance always more expensive than personal auto insurance Austin?
This may come as a surprise, but in some situations, commercial auto insurance in Austin is less expensive than personal auto insurance–even with $1,000,000 liability limits.
It’s important to purchase insurance that best fits the needs of a business.
A good insurance agent can help determine the type of policy and coverages that best meet the needs of a business and protect the owner and employees.