Use Your Car For Business? Why Commercial Auto Insurance Is A Must…

Commercial vehicle insurance is a financial product that protects business vehicles as well as the business’s financial welfare regardless of whether your business has one or two company cars or a huge fleet of cars.

A commercial vehicle transports passengers or goods in the course of performing business. It’s important you invest in this product especially if your business uses vans, trucks, and cars as the major source of income. If you’re wondering whether your business will benefit from this coverage, check out these benefits.

Protection of Employee Drivers

When you take out this insurance policy, it typically covers your workers as well. This way, they can drive a company vehicle or in some instances, your commercial policy may extend to your workers when driving their cars.

Remember, employees are excellent stand-ins when it comes to keeping your business operational. Therefore, they may need to drive your business’s vehicles to perform business.

If workers get involved in an accident while working, commercial vehicle policy will come in handy. The auto policy will also protect your business against lawsuits. Bear in mind that policies differ, so ensure you consult with a professional.

Property Protection

Buying commercial auto policy is essential in protecting your property in case of an accident. The policy will ensure that the vehicle and your merchandise are safe from the numerous incidents that could happen while on the road.

The product will also give you peace of mind in case something happens. In this case, you can receive fair compensation, which will allow you to repair or purchase a new commercial auto with minimum costs.

Higher Limits

Every day you or your worker drives your car, you face the likelihood of being involved in a wreck. Bear in mind that an accident involving business cars could result in lawsuits. Punitive damages, medical costs, and attorney’s fees can easily jeopardize you financially.

Furthermore, the amount could surpass the limits of personal auto coverage. Fortunately, commercial vehicle policies have insurance limits that typically cover your business vehicles.

Specialized Coverage

Commercial auto policy offers numerous specialized coverages, which you can obtain at no extra charge depending on the insurer. They include:

Physical damage to borrowed and hired vehicles

The coverage will take effect if a borrowed or rented vehicle used for business purposes sustains damage.

Loan or lease gaps

These gaps arise when a car is totaled and the actual cash value of a vehicle that you’ve been making payments on or have leased is less than the amount you would owe to a bank or rental company.

Damage or theft to a car’s electronic equipment

The coverage applies to damaged equipment such as permanently installed DVD player or GPS.

Increased Liability Cover

When you use a car for business purposes, you’ll suddenly find yourself with extra responsibility. In this case, you not only have to look out for the business, but yourself, and consumers.

While a standard personal policy covers individuals, it doesn’t offer almost as much liability coverage as a commercial vehicle policy. Therefore, it’s important you invest in this policy to ensure your business’s safety.

Meet the Prerequisites of Your Fleet Lease

Lessees typically need businesses to maintain commercial vehicle policy, which will protect their interests in the event of an accident.

Personal Policies aren’t sufficient

Don’t presume that your personal auto policy will provide coverage in case you’re involved in an accident while driving for the sake of business.

If your insurer discovers you’re driving for business purposes, your personal policy won’t cover the damages and you’ll have to pay out of your pocket. However, with a business policy, you will have the right to coverage.

Final Thoughts

Commercial vehicle policy is an important investment that protects business vehicles and the business against financial liability in the event that you or your employees get into an accident.

Bear in mind that without proper coverage, the injured party can sue your business if it’s at fault. Fortunately, you can avoid these issues by investing this product.

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