Whether your company owns a fleet of trucks or just one car, you need to protect it with business vehicle insurance. This type of car insurance is different from a personal auto policy and provides liability coverage as well as physical damage protection. Business car insurance requirements vary by state, but most require at least a minimum of liability coverage for bodily injury and property damage to others. Physical damage coverage may include collision or comprehensive, both of which protect your business car against losses from damages caused by an accident with another vehicle or object. This type of car insurance is also known as commercial auto insurance, business auto policy or commercial general liability insurance.
What Do I Need to Know About Business Car Insurance Requirements?
In addition to the basic requirements in most states, your business may need to consider extra coverages to meet your specific needs. Your business vehicle insurance agent can help you determine the exact coverages you need for your vehicles based on how they are used. For example, if employees use their own personal cars for business errands, you might want to consider adding an uninsured motorist and medical payments coverage to your business auto policy. These coverages typically pay for medical expenses if an employee is injured in a car accident, regardless of who was at fault.
Other factors to consider are the number of drivers, the distance you and your employees travel for work, and the types of vehicles you own. If you have a large number of vehicles and a lot of driving, you might need a larger fleet policy. The weight of the vehicle is another consideration, as heavier vehicles can cause more damage in an accident and may need special insurance to cover this risk.
Many businesses allow their employees Go here to drive their own cars for business purposes, especially if they are working from home or the office. To address this issue, you can add a rider to your business auto policy called the Drive Other Car Coverage Endorsement. This allows your employees to take a company car home with them at night and on weekends, but only when the company car is designated for such usage. You will need to make sure the proper “coverage auto” symbols are shown on your business vehicle policy declarations page before this can occur.
Most companies have a mix of vehicles, including passenger cars, vans and pickup trucks. Some may even have a box truck or food truck for business purposes. Your business may also have an entire fleet of these vehicles, and in this case you will want to discuss a commercial trucking policy with your insurance agent. These policies generally provide liability and physical damage coverage for the entire fleet, as well as additional specialized coverages for specific vehicles in your fleet. Your insurance agent can help you decide the exact coverages and limits you need for your business trucking policy.