Who Needs Commercial Auto Insurance?

A common question owners of businesses of all sizes ask themselves is: since I already pay for personal auto insurance, do I need to also pay for commercial auto insurance? The short answer is yes. But why? As with so much of our existence, the answer comes back to government regulations. In the eyes of our lawmakers, proprietors and citizens are distinct entities. Just as they are taxed separately, they are also insured similarly. While the majority of people are not business owners, being aware of the law is always a good idea. For those lucky enough to be their own bosses, not all of them are going to have a need for commercial auto insurance. But if you are the former of those two people and you operate moving vehicles of any kind, then you will need to investigate commercial rates. The next question to ask, then, is what kind of policy will my company need?

The first step to complete in answering this question is to determine the size and scope of your company. If you own and operate a fleet of vehicles of any kind (limos or taxi services, for instance), you are going to need a comprehensive commercial insurance policy. Not only will you want to ensure coverage for your own employees, but also for those with which they might get into accidents. The best policies will include bodily and property liability, collision, comprehensive (incidentals connected to collisions), uninsured and underinsured motorists, medical payments, and other options besides those listed here. Ensuring that these items are part of what you are paying for will give you the peace of mind to know that you are fully covered. Trusted companies like Farmers and The Hartford with years of experience in the insurance industry offer a variety of plans that will help you avoid the severe financial hardships that can occur in the wake of uninsured accidents.

However, not every business owner has a fleet of vehicles at their disposal. Unfortunately, it is the sole proprietor of a small company that often gets into the most trouble. For instance, a small independent courier needs to have commercial auto insurance, particularly since what they transport on a daily basis would not be covered by their personal policies. One might wonder about Uber drivers since they are typically independent contractors. Luckily, Uber offers personal insurance for its drivers, thus adding that needed extra layer of protection. Whatever the size of the company, though, the main thing owners want to avoid is significant financial hardship as a result of the accidents that are bound to happen. Small time operators are especially vulnerable since often their personal investments are tied up in their enterprise. For larger entities, litigators attempt to get as much as they can from companies in lawsuits. Commercial auto insurance serves as the first defense against those who would seek to damage your dreams of a successful business.