Vehicles play a crucial role for many businesses. From meeting with customers, transporting goods or running company-related errands, businesses often choose to purchase a vehicle or a fleet to use for company use. Sometimes, businesses let their employees drive their personal vehicles for the company. Without the proper business auto insurance in place, these companies may inadvertently put their company’s financial livelihood at risk if one of these employees has an accident.
What Auto Coverage Should a Business Have?
Business auto insurance provides the needed financial protection if a company vehicle is involved in an accident. Your business will need this coverage if your company has vehicles titled to them.
However, if your business rents, leases or allows employees to use their personal vehicles for business use, then it is important to know that a commercial auto policy does not cover these vehicles. To be covered when using these vehicles, the employer must purchase hired and non-owned auto insurance in addition to a commercial auto policy.
Business auto insurance typically offers a variety of coverage options. What you want to include in your auto insurance policy depends on your business’s needs. We can help you review your business needs to ensure you get suitable coverage for your company. Business auto insurance provides the following coverages:
- Collision insurance—This coverage can help with damage to your vehicle sustained in an accident.
- Comprehensive insurance—This coverage can help pay for damage from non-accident mishaps, such as weather damage, fires, theft or vandalism.
- Liability insurance—This coverage can help pay for the damage you do to others when an accident is your fault.
- Bodily injury liability coverage can pay for third-party medical bills and sometimes death benefits.
- Property damage liability coverage can pay for damage to the other party’s property.
- Uninsured/underinsured motorist insurance—This may help protect against damage caused by someone else who doesn’t have suitable liability coverage.
- Medical payments/personal injury protection—If you’re hurt in an accident, this coverage may help pay your or a passenger’s medical bills. Sometimes it may also cover other losses, such as lost income.
Often, businesses choose additional policies and endorsements to expand their business auto insurance benefits. These supplemental coverages may apply to your company, and we can discuss if they would be beneficial to add to your business auto insurance policy.
- Hired/non-owned auto insurance (HNOA)
- Custom parts coverage
- Gap insurance
- Inland marine insurance
- Rental car reimbursement
- Replacement cost vehicle coverage
- Roadside assistance
Various factors can influence your business auto insurance policy, including what coverage you choose, your type of business, location and the value of the vehicles you want to insure. RCU Insurance Services can help you obtain affordable coverage that meets the needs of your business.