Protecting Your Business: A Guide to Commercial Car Insurance

Commercial car insurance is similar to private automobile insurance, as it provides comprehensive coverage for vehicle damages and bodily injury. However, commercial car insurance also protects business owners from financial liabilities, insures company assets and also covers employees using business vehicles.

Does Your Business Need Commercial Car Insurance?

Owning a business comes with a lot of responsibility, both in running the operation and protecting yourself from liability. Not all businesses require commercial car insurances. Online or work from home companies generally do not require commercial insurance, as they are lower in risk when it comes to car damages and traffic accidents. Construction companies however should always carry commercial car insurance, due to higher risk of property damage, employee accidents and vehicle repairs. Companies that require extensive travel should carry commercial car insurance, as their employees are at greater risk of incidents or vehicle damage.

What Companies Offer Commercial Car Insurance?

Most insurance companies offer personal and commercial car insurance. Certain companies offer multiple policy option, such as home, personal and commercial insurance that can be combined for money saving discounts. Commercial car insurance will cover business vehicles, and those required for business operations. Therefore, a business owner would also require private car insurance for those vehicles driven for personal use only.

There are insurance companies that specialize in specific industry, such as construction. These insurance companies can cover business vehicles, employees and also other company assets such as forklifts. It would be up to the business owner to decide whether they would prefer an insurance policy that is specific to their work industry.

What All Does Commercial Car Insurance Cover?

The coverage of your commercial car insurance policy can be fitted to your specific needs. The general policy will cover physical damage to the vehicle. A business vehicle is seen as an asset, and also depreciates in business tax returns. The coverage of your commercial policy can also cover the diminished resale value if the vehicle has been in an accident, or requires extensive damage repair that will always be available to new buyers as part of vehicle history.

It will also cover bodily injury, and cover liability claims. The bodily injury coverage will be available to employees driving the vehicle for business purposes. In case of a claim, an employee may be required to take a drug test in order for the insurance company to cover financial responsibilities.

Theft is always a possibility, for both personal and business vehicles. Commercial policies cover theft, or any damage done to vehicles as a result of theft. Other options of commercial policies are paying off the entire amount of an auto loan in case of theft, even if the business vehicle may not be worth as much as the remainder of the auto loan.

Cost of Commercial Car Insurance

A commercial policy will cost more than private insurance, however the coverage is a necessity for businesses with employees and vehicles used for business purposes. The coverage received will take financial responsibility from the business owner in case of damage claims or bodily injuries. For a business, a commercial car insurance payment will be another tax deduction, but also a priceless peace of mind.