Small business auto insurance is generally available through any insurance agency that offers property, casual and automobile policies. The type of business will determine whether or not a personal auto policy is sufficient or if a commercial policy is called for. There are benefits to choosing a business policy, and one of those is protection from losses.
Type of Coverage
The majority of small businesses that take the route of having commercial auto coverage will receive coverage that is approximately the same as what’s received through an individual policy. The differences are mainly in the extra choices that can be added. A couple of these extras include coverage on rental vehicles and any car that’s used for company purposes but belongs to an employee.
Cost of a Commercial Policy
The cost of a commercial small business auto insurance policy is decided by taking into account a number of considerations such as:
- Make and model of vehicle
Location of operation
Any safety equipment that’s installed on the vehicle
The deductible chosen
Liability insurance prevents company loss because it takes care of employee accidents and makes restitution to the one who has received damage. Almost always, a commercial small business auto insurance policy comes with higher liability limits than those you would find for an individual, and that coverage can be greater than a million dollars. This allows a small business to decide on a package that fits their particular needs.
Different Factors to Consider
When a small company is weighing the decision of whether or not to obtain a commercial policy, there are a number of things to think through. One of these items is to ensure that only employees with a solid driving record are responsible to drive a company vehicle. In addition, if an employee is allowed to use a vehicle that’s owned or leased by the company, the company itself should be the named insured.
When a company plans to take out a commercial policy on more than a single vehicle, a fleet policy is an excellent option. The advantage to having a fleet policy is that all vehicles are listed in one package. In general, a fleet policy will necessitate that all drivers be added to the commercial policy.