A business vehicle without commercial auto insurance is akin to a personal car without wheels — a catastrophe waiting to happen. Without the protection and coverage provided by an auto policy, your business faces exposure to a wide range of potential risks, and the likelihood of significant financial losses increases. To help you avoid these, we’ll cover what commercial auto insurance is and how you can choose the most suitable auto policy for your business.
Assess Your Business Needs and Risks
When making a decision, start by tallying up how many vehicles your business uses and identifying the usage patterns of these vehicles. Do you use them for local deliveries? Long-haul transportation? Employee commuting?
Then, consider the driving records of your employees. Do they have a history of traffic violations and accidents? This information is essential because previous claims can substantially impact insurance premiums and the range of coverage options available.
Understand the Coverage Types
Commercial auto insurance encompasses various coverage types, including:
- Liability coverage: This coverage protects against claims resulting from bodily injury caused by your vehicles.
- Physical damage coverage: This coverage can safeguard your company’s vehicles against damage or loss caused by covered perils.
- Medical payments coverage: This covers medical expenses incurred due to injuries sustained in accidents involving your business vehicles.
Evaluate Coverage Limits
To determine the proper coverage limits for your business, consider the specific commercial automobile liability risks your business faces and how severe the consequences could be. Consider potential expenses like property repairs, medical bills, legal fees, and other related costs that could arise from an incident.
By having this information, you can ensure your limits align with your risk profile. You want to avoid ending up with coverage that falls short when needed most.
Deductibles
A deductible is the portion of expenses you must personally cover before your insurance coverage comes into effect. Usually, a higher deductible means lower premium costs, which appeals to many people. But a higher deductible also means you’ll have to pay more out of pocket in the event of a claim.
The key is finding the right balance between a deductible that fits your budget and a premium that provides sufficient coverage. Consider your risk tolerance and actual financial capabilities when deciding on the deductible amount.
Conclusion
Selecting the right commercial auto policy is a critical decision that requires careful consideration. By assessing your business needs and risks, understanding the coverage types, evaluating coverage limits, and considering deductibles, you can ensure that your business remains secure and protected against unforeseen events on the road.
About RBC Insurance Associates
As an independent insurance agency, our clients’ interests come first at RBC Insurance Associates. Our goal is to provide a comprehensive, tailored insurance program that addresses your needs. We accomplish this by working with some of the finest insurance companies in the industry with the highest ratings. We will negotiate on your behalf to get the best policy terms and pricing for your program. Here is just a sample of our leading insurance carriers.