When you're talking about a major transport company, like McLane or Dominion, the question of commercial auto insurance is fairly obvious. When you have hundreds or even thousands of trucks a day that are worth more in dollars and cents than many Americans make in a year hitting the highways in cities like Los Angeles and New York, you want to make sure they're protected. You don't want the loss to your investment and/or the huge repair fees that come from an accident, and you can't afford the loss of time and efficiency that comes from having trucks that can't be driven. But what about the little guy?
The question of commercial auto insurance for smaller companies often isn't quite as clear as it is for these major transporters, particularly if the business employs a small number of personnel and those personnel use their own vehicles for company business. Often, business owners believe that because these vehicles are already covered under a personal policy a commercial auto insurance policy would be a redundant waste of profits. Better to allow the auto insurance companies to do what they do best and put their profits to good use.
The catch is, cars that are on the road all day are at a higher risk of an accident than cars and trucks that are used primarily for commuting purposes. Auto insurance companies know that, which is why when they sell their insurance policies they ask their drivers to distinguish between whether their vehicles are used primarily for business or pleasure. They're (relatively) happy to cover the damages that result from accidents that take place on their personal time, but they may drag their feet over paying a claim that happens on company time doing company business.
Because the last thing you or your employees want to do is get into a six month fight with your auto insurance provider about whether your vehicle is used primarily for business or pleasure because you've had an accident while on the road doing company business, a commercial auto insurance policy for your business is the best solution.
Commercial auto insurance comes with a price tag similar to that of a personal insurance policy, although some of the technical aspects are a little different. Your insurance agent can explain the ins and outs of their commercial policy options to you. Trying to do it here would take all day, and as most auto insurance providers have their own takes on commercial insurance policies it would be a waste of time anyway.
What you do need to know is that a commercial auto insurance policy will protect your employees when they're out on the road doing company business, even if they're in their own vehicles, and will protect company vehicles when employees slip behind the wheel. That saves your business from the loss of efficiency that comes from having vehicles off the road and your profits from the hard hit of a car accident that can result in tens of thousands of dollars in damages that might not be eligible for coverage under a personal policy.
The bottom line is, regardless of how large or small your business may be the protection offered by a commercial auto insurance policy is going to be invaluable in ensuring the continued success of your company.
