Does Your Small Business Need A Commercial Auto Policy?

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.