Contractors, mobile computer techs, and other small business owners who use their own vehicles for work often assume their personal auto insurance will cover them. Unfortunately, business uses of a vehicle are probably excluded, so without commercial vehicle insurance, you may be left paying for damages out of your own pocket. Here’s a closer look at why these policies are an essential investment for any business owner.
A Quick Guide to Commercial Vehicle Insurance
Even if you don’t own a fleet of vehicles, you still need commercial auto insurance to cover the cost of any accidents you might cause. Without it, your insurer might deny a claim that occurs while you’re transporting clients, making deliveries, or providing on-site services. Because auto accidents can be so destructive, the resulting lawsuit could seriously harm your business even if you successfully defend yourself in court.
What Does It Cover?
Unlike your personal auto insurance policy, commercial coverage will pay for any damages caused by you or an employee, including other drivers’ medical expenses and auto repairs. If your vehicle is an important part of your business, collision and comprehensive coverage will pay for repairs, allowing you to get back to work as soon as possible. Finally, your commercial vehicle insurance policy will also cover any legal expenses related to an accident, protecting you from frivolous lawsuits.
How Much Coverage Do You Need?
Each state requires drivers to carry a minimum amount of insurance, but this may not be enough to cover the costs of even a minor accident. Most professionals recommend carrying liability coverage equal to all your other assets, including your business location, equipment, and inventory. Small business owners often worry that commercial auto coverage won’t fit into their budget, but in some cases, the premiums might actually be lower than a similar personal policy.
As a local, family-owned insurance office, Southern Insurance AL, LLC has been serving the Foley, AL, business community for nearly 30 years. Their independent agents maintain relationships with some of the best carriers in the industry, giving them a wide range of products to choose from. Visit their website for more on their coverage options or call (251) 943-3340 to request a free commercial vehicle insurance quote.