Category Archives: Commercial Auto Insurance

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.

Commercial Auto Insurance

Commercial Auto Insurance

What It Is and Why You Need It

If you are a business owner, and your business requires the use of commercial vehicles, you will need to get commercial auto insurance. Some types of businesses that may require this kind of insurance include construction, general contractors, hotel shuttle service, pest control, landscaping and many others.

What does commercial auto insurance cover?

The purpose of commercial auto insurance is to protect you, the business owner, from costs related to injuries or property damage. If you or an employee is injured, injures someone else, or harms personal property while driving the company vehicle, commercial auto insurance will cover it. If you hit someone in your company vehicle, that person’s medical payments can really add up. So it’s important to make sure you’re covered.

If you will occasionally be driving the company vehicle, commercial auto insurance will still cover the cost of any mishaps. If, however, you reverse the situation and drive your personal vehicle for business purposes, then you’ll want to make sure you have enough coverage for liability in your regular auto insurance policy or you should buy commercial auto insurance. A good example is someone who uses their personal car for delivering pizza. The business insurance policy won’t cover an accident under those circumstances. So the driver will need to have enough liability coverage.

In the case of Uber drivers, they are required to have their own car insurance. However, they get a small amount of liability coverage only when the Uber app is turned on. If you’re considering becoming an Uber driver, you’ll want to get more information about this.

Is commercial auto insurance expensive?

Commercial auto insurance IS typically more expensive than personal auto insurance. However, it also depends on the type of vehicle that’s being insured.  If you’re a small business, the average cost is $750 to $1,200 a year per vehicle. If you drive a truck, owner operators’ insurance can run anywhere from $8,000 to $12,500 annually.

What businesses are NOT required to get commercial auto insurance?

It may seem surprising, but a number of professions actually do not need to be covered by commercial auto insurance, as long as there is an active personal auto insurance policy in place. Many of these are professions in which clients may be driven for business reasons. These include lawyers, realtors, accountants and various types of consultants.

The best way to determine whether or not you need commercial auto insurance is to figure out how often your vehicle is used for business purposes. If the vehicle is used occasionally and not for primarily business purposes, then a personal auto insurance policy may be all you need.

At Zawada Insurance Agency, we’ll work with you to help you find the right type of commercial auto, as well as business owners, insurance with the coverages most important for you and your business.

Zawada Insurance Agency is a family-owned and operated independent insurance agency, working to get you the most comprehensive coverage at a competitive price. For more information about auto, life, homeowner, business and other insurance coverages, please contact Zawada Insurance Agency today.

Zawada Insurance Agency, Inc. located in Worcester, Massachusetts, serving central Massachusetts and beyond.