Your Small Business Insurance: The Right Coverage for the Right Business
When it comes to small businesses, there are a lot of choices to make about insurance. Not only do you need to decide which companies to insure your business with, but you have to decide what coverage is right for your business. Most people think about health insurance and general liability insurance. There are other types of insurance for more specialized businesses as well. Often overlooked, though, is commercial auto insurance.
Some say that commercial auto insurance isn't necessary unless you are transporting people. They say that a private auto policy is fine just for deliveries or to provide a service. Some say only to use a commercial policy if your company name is the one on the title, not your personal name. Others disagree and think it should be required for everyone. There a few things to consider, though, when deciding whether to purchase a commercial auto insurance policy. A commercial auto policy costs little more than a private auto policy and often it is priced the same. The pricing, as is with your private auto policy, is based on how many miles you drive, driving records, and the drivers being insured. If you have a private auto policy on a vehicle being used for commercial purposes, the insurance company may be permitted to deny a claim. This can happen even if you tell them that the vehicle is used for commercial purposes!
Most commercial policies cover multiple vehicles and cover all of your employees driving them. They cover damage to the vehicles, accidents, if they are stolen, medical bills, and also damage to other people's property that might be caused by your vehicles. You can often get it through the same company that you get your other commercial insurance through, and that may save you some money.
With commercial auto policies, as with standard private auto policies, the amount of your deductible will greatly change the amount you pay per month. Generally speaking, the higher your deductible, the lower your premium will be. Just be sure not to stick yourself with an astronomical deductible. Should something happen, you want to be able to afford the deductible.
All in all, the coverage options can vary greatly. The deciding factor is always what fits your business best. There are policies to cover all kinds of different businesses. There are policies to cover all different kinds of employees, even if they are driving their own car for business purposes. It is always best to talk to your insurance agent and get quotes before making your final decision.