If your business relies on its drivers and transportation services to function, choosing a commercial insurance company is a decision that affects more than just you. It can also affect the future of your business, as well as the employees who currently work with you. The wrong choice can mean the end of your livelihood if you don’t choose correctly.
Put simply, commercial insurance is a type of health coverage for medical expenses and disability income for your company. It can be used by any kind of business, ranging from the small business that only has one car for deliveries to the auto dealer with an entire fleet of cars. Even construction companies or landscaping companies who own a dump truck can use it. If any of your traveling vehicles is involved in an unexpected accident, you’ll certainly need this kind of coverage.
No matter what your business needs are, there is a commercial insurance package that can be right for you. A good agent can help you select a policy based on your business’s needs. The most common kind of coverage is owner operator insurance, which is also known by the abbreviation OOIDA. Owner operators who are part of the trucking industry often use this particular option.
If you drive a van for delivery purposes, you may need a special type of commercial insurance designed just for you. Some available policies are for people who deliver packages, flowers, newspapers or other items. Additionally, these policies can even cover you if you are in a for-hire industry and transport people from one place to another.
Determining Your Needs
You may wonder what criteria make it necessary for you to have a commercial policy versus a traditional auto policy. A general rule of thumb is that if you need the vehicle for job-related tasks besides just going back and forth to work, a traditional policy may not be enough. Alternately, if you transport goods or people for a fee or if you need your vehicle to conduct deliveries or other services, you should probably consider some kind of liability coverage. In addition, if you frequently must ask employees to operate a vehicle, or if you haul heavy equipment or tools, a business policy is usually the answer.
Commercial insurance has very similar coverage to a personal policy. For example, it is usually as customizable as your personal auto policy, and it typically consists of many of the same elements, such as collision, liability, medical payments, property damage, and physical damage. However, it tends to vary from your auto policy in terms of definitions and exclusions.
When speaking with an insurance agent, make sure you’re specific about what your business does, how you use your vehicle, what type of vehicles you use. A professional will be able to help you choose the coverage that is right for you.