How Does Business Car Insurance Work?
Your employee is driving a business car to make a delivery to a customer. On the way there, he ends up rear ending another car and causing significant damage. In addition to the physical damage, the other driver sustained injuries and has to be transported to the hospital. A commercial auto insurance
policy can help cover the property damage and medical costs from this accident. If you didn’t have coverage, your business would be responsible for covering the costs.
If you or your employees use your own cars or company vehicles for business purposes, consider getting a commercial auto insurance policy. It can help pay for the financial costs that result from an auto accident if you or an employee is found at fault – even in the event of a fatal accident.
A commercial auto insurance policy can help protect small business owners and their employees in many ways. These include:
Driving between different work locations
Visiting existing or potential customers
Driving employees around town
Performing deliveries on behalf of the business
There is no standard business car insurance policy. Business car insurance coverages will vary from state to state and depend on a business owner’s unique needs. There are business car insurance policies that cover one driver and possibly a spouse. Other policies can cover all drivers. A commercial traveling policy can cover business owners and employees if driving is a major role to their job. Speak with one of our insurance agents about your needs and which coverages can help protect you and your employees.
A commercial vehicle insurance policy isn’t just for big businesses. Many self-employed individuals can benefit from this insurance because it provides coverage in case you get into an accident while conducting business.
A business car insurance policy is different from car insurance. The liability coverages on a business vehicle insurance policy is typically higher than what is on a personal auto insurance policy. If you don’t have commercial auto insurance and you get into a significant accident, your car insurance policy may not have enough liability coverage. This means you’ll have to pay out of pocket if you meet your policy limit.
When Do I Need Business Car Insurance?
If your car or your employees’ cars are used for business, a business car insurance policy can help protect them while they’re on the road. If your business owns or leases any vehicles, a commercial auto policy can help protect them
Here are a few situations where having business car insurance could be helpful:
You use your car for pickup or delivery. This could include picking up or delivering supplies, newspapers, or food.
You provide a taxi or ride-sharing service.
Your vehicles are owned by a corporation or partnership.
Your pickup truck, van, or utility vehicle has a gross weight over 10,000 pounds, or a load capacity of over 2,000 pounds.
Do I Need Business Car Insurance on My Car?
The Insurance Information Institute recommends minimum liability coverage of $500,000.1 You can also increase your coverage to a higher limit. Your car insurance policy may not provide that much coverage.
If you get into a car accident while doing something for your business, your car insurance policy may not cover all of the costs. Let’s say you’re driving your personal car to deliver a product to a customer. While driving, you hit a pedestrian and they have to go to the hospital. The resulting medical cost is more than the coverage you have on your personal car insurance policy. The pedestrian files a lawsuit to get you to cover their medical costs. You and your business would be responsible, which could put your company in a bad financial situation.
In the same scenario, a business car insurance policy could help cover the costs of any property damage and the medical payments.
Why Choosing The Hartford Is the Best Choice for Business Car Insurance
We’re an experienced insurance company. We offer robust coverages for business car insurance
. Each business has its unique needs and risks to face. You can tailor your business car insurance policy to fit your business’ needs. We offer downtime loss, rental reimbursement and other coverages to protect your business.
If you’re involved in an accident, our claims specialists are ready to help you through the claims process. Car accidents can be stressful. We’ve got your back and are ready to answer any questions.
We’ve been writing insurance policies for more than 200 years. We can assess risks to help create a policy that fits business owners and their business’ needs. Our goal is to get your business vehicles back up and running so you can continue to run your business.
For more information on commercial auto insurance or business insurance, contact one of our insurance agents at 855-829-1683
. Or get a quote today
– it’s fast and easy.
1 Insurance Information Institute, “Business Vehicle Insurance,” https://www.iii.org/publications/insuring-your-business-small-business-owners-guide-to-insurance/specific-coverages/business-vehicle-insurance