Businesses that own or use vehicles need commercial auto insurance. How much they need depends on multiple factors. Every business, every vehicle and every driver are unique. You’ll need to tailor your coverage very specifically. What are some of the things you must consider to complete that task?
When establishing commercial auto insurance, most people will have a standardized starting point. Yet, by building your coverage from there, you’ll better protect the business in time.
Extending Your Coverage
Most states require almost all drivers to have car insurance coverage. This includes commercial drivers. Illinois requires, at minimum:
- $25,000 bodily injury liability coverage per person
- $50,000 bodily injury liability coverage per accident
- $20,000 property damage liability coverage per person
The reason states require liability coverage is it protects drivers who cause accidents. If you are at-fault for damage, you can use this coverage to compensate others to whom you cause harm. That's crucial legal security for any business.
Even so, you also might want other elements of coverage. While you might not have to carry more coverage, doing so often proves beneficial. Elements like collision or comprehensive protection help pay for damage to your fleet. Higher liability limits help you pay for exceptional costs to others. These are just a few of the additional policy offerings you need.
By increasing your coverage, you’ll create enhanced security for the business. You will be less likely to face a financial losses following vehicle accidents.
Protecting All Drivers and Vehicles
Broad commercial auto insurance is very effective. Yet, it will only help if you tailor it to the vehicles and employee drivers in your care.
Some employees will drive their personal vehicles in the course of business. That car might need commercial insurance for accidents that happen during official work. Often, the business provides this coverage to supplement the employee’s personal policy. Thus, whenever the employee uses their car for work, both they and the business have protection.
Owning a fleet of vehicles will mean a different approach. In these cases, your business owns the vehicles. Therefore, they (and their drivers, of course) are your responsibility to insure.
Make sure all the drivers you hire qualify to use a vehicle. Also list them as insured under your policy. Extend coverage to every vehicle the business owns. Depending on the specific vehicle, the protection you choose will vary. In some cases, you will be able to use one commercial auto policy. In others, you might need more than one policy.
So, ask your commercial insurance agency at 708.423.2350 about the need for business auto coverage. They’ll help you decide if any of the cars in your business need coverage.
Also Read: Does Commercial Auto Insurance Cover Driver Medical Expenses?