If your business uses a vehicle for business purposes, you need a commercial automobile insurance policy. Commercial auto insurance policies are designed for both a single-business vehicle as well as a fleet of business vehicles. As with all insurance policies, you can customize your business's auto insurance coverage to meet your needs. The key is to know what add-ons are worth it.
Hired and Non-Owned Vehicle Coverage
When you are setting up your policy, in addition to covering the vehicles that you own, you are going to want to make sure you add-on hired and non-owned liability and physical damage coverage
This add-on will cover you if an employee is injured while driving their own vehicle for business purposes. Without this coverage, if an employee is injured while driving their own vehicle for work purposes, you will have to cover the damage out-of-pocket.
This add-on will also cover you if you need to rent a vehicle for any reason. For example, if you rent a vehicle to cover a route while a vehicle is being repaired, or if you rent a car while on a business trip, this insurance can cover you. You never know when you may need to rent a vehicle, or have an employee do work in an non-company owned vehicle, and this add-on will protect you when that situation arises.
Drive Other Car Coverage
Your commercial insurance coverage is designed to cover the business use, not personal use, of your business vehicles. With this type of coverage, your insurance benefits will extend if you as the owner, or your spouse, drive a business vehicle for personal purposes. This is smart coverage to have, as you don't want to lose out on coverage because you drove the business vehicle to the store for personal groceries and then when home and got into an accident. This policy will allow you the freedom to use your business vehicles whenever needed for personal business.
Rental Reimbursement Coverage
With rental reimbursement coverage, if your vehicle is damaged and is out of commission while it is being repaired or replaced, your insurance will pay or reimburse you for a rental vehicle. Renting a vehicle can easily put you out of your budget, and this type of coverage usually only adds a few dollars a month to your premium, making it a worthwhile investment, especially when dealing with commercial vehicles that you rely on for your business.
When purchasing commercial auto insurance, be sure to review all the add-ons that you can include with the policy and choose the ones that make the most sense for your business. Hired and non-owned vehicle coverage, drive other car coverage, and rental reimbursement coverage are three add-ons that many business owners find worthwhile. For more information about commercial automobile insurance, contact a local provider.