All posts by zawada

The Best Way To Prevent A Lawsuit From Ruining Your Business

As a business owner you face a great deal of risks on a daily basis. This statement holds particularly true in the current situation that we are all dealing with. However, what would happen if you were sued? At first you may go into denial and think that there is absolutely no reason for someone to sue you. While this may be true, we do live in an extremely litigious world. That means anyone can sue you at anytime and for any reason. In fact, small business owners are sued all the time for both legitimate and unfounded reasons.

In essence, you may very well find yourself in the middle of a lawsuit even if it is a frivolous one. It goes without saying that any lawsuit can cause an enormous amount of stress. Some may even lead to financial disaster, even if you did absolutely nothing wrong. The good news is that asset protection planning goes a long way in mitigating the impact of any lawsuit. So what exactly is asset protection planning? By definition it is a “pre-litigation risk management tool that is intended to both deter and discourage lawsuits from occurring.”

If that is not possible, asset protection planning seeks to get your creditor to agree to a settlement that you find favorable. It should leave them with less they sought to get. A great deal of entrepreneurs are focused on the bigger picture. i.e. running their companies in a profitable manner now and in the future. That being stated, you must also take the proper steps in order to protect your assets from the negative implications of litigation. The best way to prevent a lawsuit from ruining your business is by having a liability insurance policy in place that fully covers you from a financial standpoint.

In fact, liability insurance is the most cost effective form of asset protection for both you and your business. Although business owners may have a liability insurance policy, they may not have the correct kind or the proper amount in place. This happens on a frequent basis because liability insurance certainly is not something that the vast majority of business owners pay attention to. In essence, they take out a policy, check it off the to do list, and move on to other things.

Many business owners take out commercial liability policies, yet they fail to fully realize that their business can be ruined if they are involved in a personal lawsuit. A simple umbrella policy covers both yourself and your business. In essence, it is an inexpensive way to cover your business assets and your personal assets in the event that you are sued. It is unfortunately that a plethora of business owners, particularly incredibly successful ones, are either underinsured, or their policies do not cover them in a sufficient manner.

Some insurance companies maximize the amount of coverage for their umbrella policies at $5 million. That means if your net worth, including your ownership share of the business, is over $5 million you may be at serious risk and should consult with an experienced insurance agency that specializes in liability insurance for business owners.

In conclusion, it is important to fully understand exactly what you are buying when it comes to insurance policies. If you have any questions, please call (508) 831-0133 to contact an associate at Zawada Insurance. We are happy to walk you through the details of your insurance policies and explain your coverage options. We look forward to helping you with all of your personal and or business related insurance needs now and in the future.

Coronavirus Will Cause Life Insurance Rates To Increase

Our lives have literally changed overnight thanks to the Covid 19 pandemic. Most of us are stuck in our homes social distancing from family members, friends, neighbors, and co-workers. A trip to the grocery store means gearing up and bracing for longer lines and emptier shelves. Our schools are now just empty buildings instead of places of learning. Even the children would rather be there with their friends and teachers instead of being stuck at home with their parents and siblings.

Office buildings share the same fate. Most of us would rather be back at work telling stories around the water cooler with our co-workers as opposed to working remotely from home. If you are working on the front line we thank you and hope that you stay safe. You are the true heroes. The good news is that this will end at some point in the near future, and we will get back to normal. In the meantime, it is a great idea to take this occasion to be thankful for what you have instead of focusing on what you do not have.

It is also a good opportunity to concentrate on the important things in life such as your family, and how to best protect them. In addition to following all of the Covid 19 protocol in order to keep your family as healthy as possible, it is also important to either review your current life insurance policy, or consider taking one out if you do not have a policy in place. Now is the perfect time to do it because life insurance premiums are bound to go up based on the fact that lives are being lost because of Coronavirus.

Unfortunately, this trend will continue for a while before things level out. That means the life insurance premiums will rise with the death rate. Think of it in the following manner. Life insurance companies are forced to raise prices based on the immense increase in the policy payouts that are associated with the higher death rate. If that sounds a bit morbid, it is. However, it is important to explain the process so that you have a better understanding of how the process actually works.

The bottom line is that now is the perfect time to lock in your life insurance policy before the prices spike up. If you already have a life insurance policy in place, you should be asking yourself if there is enough coverage to protect your loved ones if something should happen to you? For example, most policyholders take out life insurance when they start a family, and then do not think much about it. That being stated, your family may have grown since that time, which means you need to increase the policy amount. If you have started a family and do not have life insurance, now is the time to get it.

In conclusion, the Covid 19 pandemic has taught us the importance of being prepared. Please consult with a professional insurance agent that specializes in providing life insurance. It is important to fully understand exactly what you are buying when it comes to insurance policies. If you have any questions, please call (508) 831-0133 to contact an associate at Zawada Insurance. We are happy to walk you through the details of your insurance policies and explain your coverage options. We look forward to helping you with all of your personal and or business related insurance needs now and in the future.

Your Guide To Boat Insurance

The beginning of spring is here in Massachusetts! That means the warm weather will soon follow. A great deal of people are looking forward to getting their boat in the water while others are planning to purchase one. Boating is a great activity that provides countless hours of fun and fresh air. That holds particularly important in these times of uncertainty. If you currently own a boat or are planning to buy one in the near future, it is important to find the best boat insurance policy that will fully cover you if there are any damages or even theft.

The following information will help you understand what boat insurance policies are all about. So without further ado, here is your guide to boat insurance.

Do You Actually Need Boat Insurance?

In most cases, the answer to this question is YES. That being stated, there are situations where your homeowner’s insurance policy covers your boat, but they are extremely limited. For example, homeowner’s policies are characteristically caped at $1,000. On top of that, liability coverage, the main component that pays for damage to both your boat and others, is not usually included under your homeowner’s policy.  If you own the following type of boat, you do not need boat insurance coverage….

  1. Boats with small engines
  2. Canoes
  3. Any other type of small, slow and inexpensive vessel

If you own the following type of boat, you do need boat insurance coverage….

  1. Yachts
  2. Jet Boats
  3. Large Sailboats
  4. Personal watercraft such as Jet Ski’s
  5. Any type of boat that has the capability to go over 25 miles per hour

What To Expect From Your Boat Insurance Policy

First and foremost, liability coverage is the most important piece of the boat insurance pie. In essence, it pays for any damages to the boat itself. For example, if the boat is in an accident while on the water, or being transported to the water, the liability section of your boat owners policy will coverage the damages or replacement costs. Liability coverage also provides financial protection for you if a third party is injured in any manner as a direct result of your boat.

For example, if a guest is injured while on your boat, the liability section of your boat owner’s policy covers the costs if you are sued in a court of law. It also covers their medical expenses. However, there are a few items that the liability coverage does not cover. For example, it does not cover normal wear and tear to the boat, damage caused by mold/insects/ and zebra mussels, or any damage that is caused from sharks and other sea dwelling creatures. In addition, there are two (2) types of damage coverage that you can purchase as part of your boaters insurance policy.

The Actual Cash Value pays you for the value of your boat at the time it is damaged. The amount is not based on the purchase price of your boat. It is based on the current market value of your boat. Your insurance company will determine the current market value based on a plethora of factors such as recent sales prices of same of similar models, age, and deprecation to name a few. The other type of damage coverage is called Agreed Amount Value.

If your boat is completely ruined as in totaled, your insurance company will pay you an amount of money that both you and the insurer agreed upon when taking out the policy or updating it. If repairs can be made to your boat, the insurance company will replace the broken items with brand new ones without making a deduction for depreciation. Typically speaking, Agreed Amount Value is the more expensive option because it provides the best benefit.

In conclusion, if you own a boat, you need to have the proper boat insurance policy in place. Please consult with a professional insurance agent that specializes in providing boat owners insurance. It is important to fully understand exactly what you are buying when it comes to insurance policies. If you have any questions, please call (508) 831-0133 to contact an associate at Zawada Insurance. We are happy to walk you through the details of your insurance policies and explain your coverage options. We look forward to helping you with all of your personal and or business related insurance needs now and in the future.

 

Motorcycle Insurance Coverage Options

The spring season is finally upon us, which means a great deal of people will start riding their motorcycles again. It is a great way to travel, especially in the day and age of social isolation. Hitting the road on your bike may actually be the best and safest way to get out of the house in order to blow off some steam. What better way is there to stay away from others, but still have the freedom to cruise? That being stated, you still need to make sure that your motorcycle is properly insured before you take it out for a spin. So without further ado, the following information will provide you with a bunch of motorcycle insurance coverage options that will protect both your ride and yourself.

In essence, there are many types of motorcycle insurance coverage options to choose from. In fact, they are similar to the standard options that are available for automobile insurance. In addition to liability coverage, and uninsured/underinsured motorist coverage, the following options are typically available to motorcycle owners in the Commonwealth of Massachusetts.

Collision Coverage

If you get into an accident with your motorcycle, collision coverage pays for the actual damage to the bike after your deductible is subtracted from the repair or replacement amount. The deductible is the amount of money that you choose when you initially purchased your policy. In essence, it is the amount that is deducted from the claim check.

Comprehensive Coverage

This type of motorcycle insurance coverage pays you if your motorcycle is stolen or if the bike is damaged by anything other than a collision with another vehicle. Please note that a deductible applies and collision with animals are covered under your comprehensive coverage.

Personal Injury Protection Coverage

This type of motorcycle insurance coverage pays for medical bills, or portions of medical bills for parties that are injured in an accident. The parties may include you, a passenger, a pedestrian, or another operator. Insurance companies typically offer personal injury protection as an add on option, although it may be included as part of your standard policy. Deductibles may apply in certain cases.

Trip Interruption Coverage

This type of motorcycle insurance coverage comes in extremely handy if you are in an accident, or your motorcycle is put out of action when far away from your home. In essence, trip interruption coverage pays for food, lodging, and transportation if you are at least 100 miles away from your primary address.

Roadside Assistance Coverage

Speaking of breaking down, roadside assistance coverage includes towing and even labor at the site where your motorcycle breaks down. This is typically limited to specific distances within the radius of your primary address. For example, roadside assistance may only cover you if the bike is located within 30 miles of your place of residence.

Transport Trailer Coverage

If you travel with your motorcycle or transport it in a trailer, you should seriously consider adding this type of coverage to your policy. In essence, it covers damages to trailers that are valued up to $7,500.

In conclusion, if you own and operate a motorcycle, it is just as important to have the proper insurance coverage as it for your automobile. It can make the difference of having an amazing experience on the open road, or potentially facing a disaster from a financial standpoint. Please consult with a professional insurance agent that specializes in providing motorcycle insurance. It is important to fully understand exactly what you are buying when it comes to insurance policies. If you have any questions, please call (508) 831-0133 to contact an associate at Zawada Insurance. We are happy to walk you through the details of your insurance policies and explain stockyour coverage options. We look forward to helping you with all of your personal and or business related insurance needs now and in the future.

What Exactly Does Your Homeowners Insurance Policy Cover? Part 2 of 2

Tip #2: Check The Value Of Your Policy Against The Local Building Costs On A Yearly Basis

It is always a good idea to check with your insurance agent to see if they offer an Inflation Guard Clause. In essence, it automatically adjusts the dwelling limit when you renew your policy to reflect the current construction costs in your area. That being stated, it is a good idea to keep up with the local building costs by checking with the builders association.

Tip #3: Avoid Insuring Your Home Based On Market Value

Do not insure your property based on the current market value because the cost to rebuild your home may actually be higher or lower than the price you paid for it or the amount you can sell it for in the current real estate market.

There are also two (2) methods to insure your personal belongings. They are as follows….

Replacement Cost Coverage

In essence, replacement cost coverage is a part of the insurance policy that pays you the dollar amount needed to replace damaged personal property with items of like quality or kind, and without a deduction for depreciation.

Actual Cash Value

In essence, actual cash value is a part of the insurance policy under which the policyholder receives an amount of money equal to the replacement value of the damaged or missing property minus depreciation. The coverage is for actual cash value unless your homeowner’s policy specifically states that the personal property is to be covered for its actual replacement value.

When it comes to insuring your personal items, there are a few tips that you should keep in mind. They are as follows….

Tip #1: Review The Limits Of Your Policy For Personal Items

It is important to check the limits of your homeowner’s insurance policy regarding your personal items such as jewelry, silverware, computer equipment, and expensive collectibles. If the limits happen to be too low, you should consider purchasing additional personal property insurance coverage in the form of a floater. It is also referred to as an endorsement, which means it is in addition to your standard homeowners insurance policy. A floater is a form of insurance that provides you with the ability to insure valuable items in a separate manner.

Tip #2: Take An Inventory Of Your Personal Items

It is also important to take on inventory of everything that you own in your home, along with items that you own that are located in other buildings on the property such as an unattached garage or storage shed. The key is to actually take the time to list the major items that you own. You should include all available information when writing it down such as the serial number, make and model, purchase price, date of purchase, and current market value.

Tip #3: Document Your Belongings

A great deal of homeowners do not take the time to actually document their belongings. It is always a good idea to take either still pictures or videos of the items. You should also attach receipts to your items when applicable. Keep in mind that you should store the records pertaining to your belongings away from your home. For example, if your house were to burn down then the records of your belongings will burn if stored at the property. You can always rent a safe deposit box at your local bank. You should also update the inventory list and records when you make any new purchases of value.

In conclusion, perhaps the most important thing that you can do in order to safeguard both your home and property inside of your home is to fully understand that your homeowner’s insurance policy is actually a contract. That means you need to be fully aware of exactly what is in that contract.

It is important to fully understand exactly what you are purchasing when it comes to insurance policies. If you have any questions, please call (508) 831-0133 to contact an associate at Zawada Insurance. We are happy to walk you through the details of your insurance policies and explain your coverage options. We look forward to helping you with all of your personal and or business related insurance needs now and in the future.

What Exactly Does Your Homeowners Insurance Policy Cover? Part 1 of 2

Homeowners insurance is certainly not something that most of us want to think about, let alone discuss, until we actually need it. However, understanding what is covered and what is not covered in your policy can actually make the difference of being able to rebuild your property and replace your personal belongings if a disaster happens to strike. That being stated, it is a good idea for homeowners to do an annual insurance policy check up in order to ensure that they are keeping up with local home remodeling costs, along with inventories of their personal items.

In most cases, your homeowner’s insurance policy covers damage that was caused by fire, windstorms, hailstorms, explosions, and water damage that excludes flooding. Other losses are typically covered such as the cost of living somewhere else while your home is being repaired or rebuilt, and theft of your belongings. Most policies also cover legal liabilities if other people are injured while visiting your home. The bottom line is that your homeowner’s insurance policy covers both the structure of your home, and your personal belongings that are located within your home. There are actually three (3) methods to insure the structure of your home. They are as follows….

Replacement Cost

In essence, replacement cost pays the policyholder the amount of money that it costs to replace the damage to the property. This occurs without a deduction or depreciation, however it is limited to a maximum amount based on the specific policy.

Extended Replacement Cost

In essence, extended replacement cost is just what it sounds like, an extended replacement cost policy that covers costs up to a particular percentage over the limit. Typically it is based on 20%. Extended replacement cost provides you with protection against occurrences such as an unexpected increase in construction costs.

Actual Cash Value

In essence, actual cash value covers the costs to replace aspects of your home minus a determined amount of depreciation costs based on both age and use. For example, if your 15-year-old roof is destroyed due to a fire, and the life expectancy of that roof is 20 years, the cost to replace it is significantly higher that the tangible cash value of the roof.

It is important to insure your home for the total amount that it would cost to rebuild it if completely destroyed. Keep in mind that number is not the actual market value, rather the cost to rebuild. Also keep in mind that if you fail to have adequate insurance, the amount may not actually cover the full costs of repairing or replacing the damaged items. The following tips will help to ensure that you have enough homeowner’s insurance coverage….

Tip #1: How To Estimate The Amount Needed To Rebuild Your Home

In order to estimate the amount needed to rebuild your home, multiply the local building costs by the total square footage of your home. Consult with your local builders association in order to figure out the building rates within your area. Please note that this is only an estimate that will provide you with a ballpark figure. Always consult with your insurance agent prior to making any changes to your policy.

To Be Continued….

It is important to fully understand exactly what you are purchasing when it comes to insurance policies. If you have any questions, please call (508) 831-0133 to contact an associate at Zawada Insurance. We are happy to walk you through the details of your insurance policies and explain your coverage options. We look forward to helping you with all of your personal and or business related insurance needs now and in the future.

A Few Reasons Why Insurance Is Necessary

Insurance is just one of those things that you hope to never need, but are incredibly glad you have it if and when you do need it. That being stated, there are multiple types of insurance to choose from, and they are all valuable in different ways.

The main point of having insurance coverage is to mitigate your overall risks in life.

In essence, insurance is there to protect you when the junk hits the fan. In fact, making a small investment in personal insurance will provide you with the ability to not only live with far less stress, it will also provide you with security in advance.

The bottom line is that insurance is far more than a simple tax savings tool. It also provides you with multiple vital benefits. The following information will provide you with a few reasons why insurance is not only important, but also necessary.

Reason #1: Insurance Protects Your Loved Ones

Although your current income may comfortably support your family and their future goals, what would happen to them if you suddenly died? Would your spouse and your children be able to meet their current financial needs, let alone their future ones without you?

If you truly want to provide for your loved ones no matter what happens to you, consider purchasing a term life insurance policy.

If you do happen to pass away before your time, your family will receive either a lump sum amount, or a monthly payout that will provide them with enough money to cover their financial requirements now and in the future.

The good news is that term life insurance is a type of coverage that has an affordable premium cost. The investment is well worth the fee. You will be able to live with the peace of mind of knowing that your family will be well taken care of from a financial standpoint.

Reason #2: Insurance Protects Your Assets

If you own a house, other types of real estate property, a business, or anything of value than you need the appropriate insurance coverage in order to protect those assets.

For example, your homeowners/property owner’s insurance policy covers the cost to repair or replace your real estate and valuable contents that are damaged or destroyed by fire and most natural disasters.

Your automobile insurance policy pays for repairs or replacement of your vehicle if you get into an accident. Protecting your assets is extremely important because you just never know when a catastrophe will occur.

Reason #3: Insurance Protects You From Liabilities

We happen to live in an extremely litigious world. It seems as if everyone is looking to sue you in order to benefit from a monetary gain.

That means you need to have the proper insurance policies in place in order to protect you from those liabilities. For example, homeowners/property owners/renters insurance protects you if a person is injured while visiting your house, commercial/industrial property, or apartment.

In essence, if that person decides to sue you, the insurance will typically cover the costs so that you will not need to pay out of pocket. The same holds true for automobile insurance.

If you cause an auto accident and the other party or parties are injured, you will be held liable. Once again, the insurance will typically cover the costs so that you will not need to pay the victims out of pocket.

In conclusion, life in incredibly uncertain and has a way of throwing surprises at you when you least expect it. In order to be fully prepared to deal with the contingencies in life, insurance is absolutely essential.

It is important to fully understand exactly what you are purchasing when it comes to insurance policies. If you have any questions, please call (508) 831-0133 to contact an associate at Zawada Insurance. We are happy to walk you through the details of your insurance policies and explain your coverage options. We look forward to helping you with all of your personal and or business related insurance needs now and in the future.

Save Money By Avoiding These Insurance Mistakes

Let’s face it, saving money feels awesome. Saving money on your insurance coverage is an excellent way to either put away, or spend a few extra bucks each month. That being stated, reducing your coverage or even dropping important pieces of the insurance puzzle can backfire on you in a significant manner.

You need to focus on the entire picture. If you only concentrate on the numbers and leave the results out of the equation you are doomed to fail.

In essence, you are taking the risk of ending up underinsured. That means you may very well end up being responsible for paying humongous bills out of pocket if and when a disaster strikes. Avoiding the following insurance related mistakes will go a long way in helping you save money without the risk.

Mistake #1- Selecting An Insurance Company Based Only On Price

Competitive prices are certainly an important aspect of choosing an insurance company. However, you also need to be sure that the company you decide to do business with provides great customer service and is financially sound.

You can test an insurance company’s customer service by reading online reviews, asking your contact list about their experience with the business, and checking their Better Business Bureau rating. You can also check the financial health of the business with an independent credit rating agency such as Moody’s or A.M. Best.

Mistake #2- Eliminating Flood Insurance On Your Home Or Commercial Property

Did you know that damage that is caused by flooding is not covered under the standard property insurance policy? It is also not covered under a standard renter’s insurance policy.

Although you may not be aware that you are at risk of a flood, you do need to keep in mind that approximately 25% off all floods occur in low flood risk areas. In addition, spring runoff from melting snow happens to cause a significant amount of flooding in Massachusetts.

Even if you never experience a flood, having flood insurance will provide you with peace of mind just in case one happens to strike.

Mistake #3- Failing To Purchase Renters Insurance

Are you aware of the fact that renters insurance covers both your possessions and the addition cost of living expenses if you need to move out of your apartment in case of a disaster such as a hurricane or fire?

Just as important, your renter’s insurance policy also covers you for liability protection if another party is injured while at your home. This comes in extremely handy if they decide to sue you.

You can actually save money by looking into multi-policy discounts. For example, when you purchase numerous insurance policies with the same company, they will typically provide you with a package deal.

Mistake #4- Purchasing The Minimum Amount Of Automobile Liability Insurance

When you only purchase the minimum amount of legally required Auto Liability insurance you are getting what you pay for, which of course is minimum coverage. That means you will need to pay far more out of pocket if you cause an auto accident and are sued.

This of course can completely jeopardize your personal financial well being. The good news is that you can save money by dropping collision and or comprehensive coverage on automobiles that are worth south of $1,000.

It is important to fully understand exactly what you are purchasing when it comes to insurance policies. If you have any questions, please call (508) 831-0133 to contact an associate at Zawada Insurance. We are happy to walk you through the details of your insurance policies and explain your coverage options. We look forward to helping you with all of your personal and or business related insurance needs now and in the future.

The Top 3 Benefits Of Working With A Local Insurance Agency

The Internet happens to be a remarkable tool that makes purchasing items incredibly convenient and easy for shoppers across the globe. Simply click a button, or better yet an icon and like magic your items appear at the door within a few short days. While online shopping may be the best method of buying products that need little to zero explanation, it tends not to work out so well for products/services that are of a more complex nature. A good example is personal and business insurance policies.

Although you may see a plethora of options when shopping online for automobile insurance, home insurance, life insurance, and even business insurance, the decision as to what coverage you need and at what limits is complicated to say the least. If you select the wrong products and coverage’s within those products, you may very well find yourself paying hundreds or even thousands of dollars out of pocket when you do need to make a claim.

Many people do not realize that choosing the proper insurance policies is as important to your financial health as exercising and eating properly is to your physical health. So why not leave it up to experts instead of to chance? The following information will provide you with the top three (3) benefits of working with a local insurance agency.

Better Customer Service

Would you rather reach an automated recording or an actual person when you call your insurance company with questions, or worse yet, you need to report a claim? Most of the large insurance companies, especially the ones that primarily conduct business online, have switched to automated systems. That means it is far more difficult to reach the correct person. It is also significantly more time consuming.

On the other hand your local and independent insurance agency will have an actual person to greet you when you call or stop by the office. In the unfortunate event of a claim, your local insurance agent will fully explain exactly what your policy covers. For example, if you have experienced a significant loss due to fire damage to your home or business, your local insurance agent will connect you with a reputable remediation company immediately.

Knowledge Of The Local Area

An important benefit of working with a local insurance agency that most people do not think of is the fact that the agents have first hand knowledge about your community. Many local insurance agents have lived in your area for years. Their information about the community can actually be utilized in order to protect your assets and reduce your risks. For example, an insurance company located in California probably is not familiar with the high water tables in New England that increase the risks of floods when the snow melts in the spring.

A local agent will be able to recommend basement water coverage, which is not included in most homeowners’ insurance policies. Local insurance agencies also have the know how and ability to provide you with seasonal tips that will eliminate or significantly reduce risks such as raking your roof when it snows in order to prevent ice dams.

Saves Both Time And Money

Large insurance companies that promise to significantly reduce your insurance rates may seem to be a cost-effective choice. However, working with a local insurance agency will actually save you money in the long run. Local agents will ask you questions, and take the time needed to become familiar with your exact circumstances, instead of simply providing you with an instant insurance quote and rate. That means your local insurance agent has the ability to ensure that the coverage they design for you will sufficiently protect both you and your assets in the event of a claim.

It is important to fully understand exactly what you are purchasing when it comes to insurance policies. If you have any questions, please call (508) 831-0133 to contact an associate at Zawada Insurance. We are happy to walk you through the details of your insurance policies and explain your coverage options. We look forward to helping you with all of your personal and or business related insurance needs now and in the future.

Does Your Small Business Need A Commercial Auto Policy?

Commercial Auto insurance protects the vehicles that your small business owns or leases. It also protects the passengers inside of those vehicles in the event of an accident. In addition, commercial auto insurance provides protection for vehicles that are owned or leased personally by the business owners, but are also utilized for particular business purposes. In essence, this type of insurance has a combination of both liability and property characteristics.

For example, the liability aspect protects your business if it happens to be at fault for causing an auto crash, and that accident causes bodily injury or damages to another party’s vehicle or property. The property portion protects the value of your vehicle against accidents, theft, and other types of dangers. The question at hand is does your small business need a Commercial Auto policy? Please read on in order to find out.

Do You Need A Commercial Auto Insurance Policy?

If your business owns or leases any vehicles that are titled in the name of the organization, than the answer is yes, you need a Commercial Auto insurance policy. The Commonwealth of Massachusetts requires every vehicle that is registered in the state to have a minimum amount of liability insurance coverage. If you own a small business you need to a Commercial Auto insurance policy for any vehicles that are owned or leased under your business or personal name, and are driven by employees, co-workers, clients, or volunteers.

In addition, you will need Commercial Auto insurance for any vehicles that are utilized for business purposes such as transporting clients, visiting work sites, or transporting goods and materials that directly relate to the operation of your business. If you transport goods or passengers for a fee, including ride-sharing services and package delivery, than you also need to take out a Commercial Auto insurance policy. You will also need Commercial Auto insurance if you own or operate a truck, box truck, dump truck, food truck, or other large truck or cargo type of work van.

Commercial Auto insurance does not cover your employees who drive their personal automobiles for business related purposes. For example, small businesses that have employees driving their personal vehicles when conducting business related errands, such as dropping off or picking up mail at the post office, should purchase a Hired And Non-Owned Auto Insurance policy in addition to their commercial auto coverage.

The policy is also available for small businesses that do not own or lease vehicle and or do not need commercial auto coverage, hire livery cars to pick up and drive around clients, and send employees on business trips where they rent vehicles. Hired And Non-Owned Auto does not cover commuting from home to work, or any personal type errands in vehicles that your business does not own.

Vehicles Covered Under The Commercial Auto Insurance Policy

Commercial Auto policies cover cars, sports utility vehicles, light pick up type trucks, and vans that are utilized for business related purposes. The policy will also cover large trucks that are typically excluded from Personal Auto policies such as box trucks, dump trucks, food trucks, service utility trucks, and trailers. Commercial Auto insurance is available for organizations with both small and large fleets that range from one (1) vehicle to many.

It is important to fully understand exactly what you are purchasing when it comes to insurance policies. If you have any questions, please call (508) 831-0133 to contact an associate at Zawada Insurance. We are happy to walk you through the details of your insurance policies and explain your coverage options. We look forward to helping you with all of your personal and or business related insurance needs now and in the future.