How Commercial Auto Insurance Can Save Your Business
All auto insurance is not created equal! As a business owner, having a properly constructed commercial auto insurance policy can save you and your business from potential financial disaster.
Commercial auto insurance covers losses that your personal auto insurance policy will not cover. Without commercial auto insurance, those losses would end up having to be paid out of pocket, leading to extreme financial strain on not only your business, but your personal finances as well. The most common example would be an at fault accident in your vehicle during business activity. Many times, the losses would not be covered under your personal auto policy even if the loss occurred in a vehicle that is owned by you personally, rather than owned by the business.
Likewise, it is important to add hired and non-owned auto coverage to your commercial insurance policy. Hired/Non-owned extends coverage to vehicles that you have hired (delivery services, courier services, etc.) and vehicles not owned by the business (personally owned, employee owned) that may be used for business activity. As mentioned above, if there is a loss, chances are that loss will not be covered under the personal auto insurance policy, leaving your business on the hook to pay for the damages.
Commercial auto insurance also provides insulation from commercial auto losses effecting your personal financial portfolio. For instance, if there is an auto loss in the course of business activity, and you have a properly constructed commercial auto insurance policy, the liability and financial burden of that loss will be covered by the commercial auto policy, keeping your personal assets from coming into play.
As in all aspects of finance, insurance plays a major role in risk management. Commerical auto insurance is no exception. With a properly constructed commercial auto insurance policy, you can rest assured knowing that you and your business will be taken care of in the event of a loss.