If you own a business you will needs all sorts of insurance to protect yourself against costly issues ,from accusations of negligence from clients, to auto accidents that involved one of your business’s vehicles. Adequate coverage for this latter instance is particularly important because it is one of the problems that probably has the greatest likelihood of actually happening, maybe even multiple times. Buying commercial auto insurance is different in many ways from standard insurance and here are some important considerations to help guide you through the purchasing process.
Establishing Clear Definition of ‘’Commercial Use’’
With many businesses, it is clear that you will need commercial auto insurance—such as if you have delivery trucks. In other instances, though, it may not be totally clear if you would need to insure your vehicle on a commercial policy. To determine this, you should carefully review your personal auto policy to see what your carrier considers ‘’commercial use’’ of your vehicle. If how you are using the vehicle definitely falls under this category, or even if you are unsure, it would be smart to start shopping for a commercial auto insurance policy.
Shop Online for Quotes
Extensive quote comparison is not just for personal auto insurance policies; as a business owner, you always need to have your eye on the bottom line and be looking for ways to minimize costs without sacrificing the health of your business. You can compare commercial auto insurance quotes online just as an individual can. Do not assume that all policies are the same and that they will all cost around the same. Costs can vary significantly between carriers for the same type of coverage; when doing your comparisons, it is important to review the features of each policy to make sure you are making accurate comparisons among them.
Look to Your Current Business Insurance Carrier
If you currently hold other types of business insurance, such as general liability, with a carrier, contact them to see if they offer commercial auto insurance. You can save on premiums by getting coverage for multiple types of insurance from the same carrier.
Insure Drivers 25 and Older
If your business requires you to hire other drivers, you should consider extending employment to only those that are at least 25; from an insurance standpoint, younger drivers, particularly males, pose a greater risk of an accident and this perceived risk will be reflected in your premium. Older drivers are seen as being more experienced and you will save money on insuring your commercial vehicles if they are behind the wheel.
Considerations for Special Types of Coverage
Certain types of business may be subject to rules, regulations and standards that have been set forth by their federal or local government. In the US for example, companies that move goods out of state must meet certain insurance standards set forth by the Department of Transportation. When deciding on a policy, you need to know if you have any special requirements you must adhere to and you need to make sure your policy reflects them.
Kelli Cooper is a freelance writer who blogs about a variety of business insurance topics; if you are in need of commercial insurance in Canada, she recommends you learn more about Kanetix solutions for your business.