Entrepreneurs who rely on business vehicles to transport their products and make deliveries understand how valuable their fleet is for sales and profits. Just as important is having the appropriate auto insurance in place to protect these cars, vans, and trucks from the unexpected. Here are answers to several common questions about securing the right type of coverage.
Frequently Asked Questions About Business Auto Insurance
What does a standard policy cover?
Most auto insurance plans for businesses include liability insurance, which pays for property damage and bodily injuries as a result of an accident involving you or one of your employees. Depending on the state, some companies may be required to obtain personal injury protection (PIP) to pay for drivers who are either uninsured or underinsured.
Collision coverage is also a common inclusion in business car insurance policies and picks up the tab for property and injury expenses in an accident even if the other person was at fault. Comprehensive is typically packaged with collision and covers damages stemming from natural disasters, theft, vandalism, fire, and other non-vehicle accidents.
What types are vehicles are covered?
From cars and vans to limousines and taxis, any type of vehicle that you use to do business needs more than just personal auto insurance protection. This also includes larger commercial vehicles such as tractor trailers, semi-trucks, tow trucks, and construction vehicles. For this latter category, a separate commercial truck insurance policy is often required.
Will my personal auto coverage apply to business vehicles?
If the vehicles are used primarily for business purposes, your personal policy may not provide coverage. An insurance agent can discuss any exceptions with you. Because you’re using the vehicles as a part of running your company, the liabilities are higher if an accident occurs or if someone is injured.
Can I tie auto coverage into a larger business insurance policy?
Insurance for business vehicles is typically a separate policy from your standard business insurance policy. The latter deals with situations involving damage, injuries, and claims against the company’s physical properties and other non-vehicle-related incidents. However, some carriers offer discounts if you secure both auto insurance and standard business coverage with them. As added protection for your company, it’s worth the investment to have both plans in place to minimize out-of-pocket costs if an accident occurs on-site or on the road.
Whether you’re planning to launch a startup or are an established company owner, having the proper type of auto insurance for your business vehicles provides financial peace of mind. Phillip Kent Beck Agency in High Point, NC, is the locally based firm individuals and entrepreneurs turn to for reliable and affordable coverage. As a provider of Nationwide® insurance, you can count on customized policies designed to accommodate the unique needs of your business. Visit the website today to get a free, no-obligation insurance quote. You’ll also find information on the full suite of products. If you have questions, give the agency a call at (336) 434-2111, and a friendly representative will gladly assist.