How Necessary is Business Auto Insurance?

Most people wouldn't drive without auto insurance. Likewise, a conscientious business owner wouldn’t let employees drive company cars and trucks without business auto insurance. What is that exactly? Business auto insurance is similar to personal car insurance, but designed to cover vehicles that are owned and operated by businesses and their employees.

Many different kinds of businesses use vehicles in their day-to-day operations. A limo service chauffeurs passengers around town. A restaurant or catering service makes homes deliveries. A construction crew drives to worksites while transporting tools and equipment. Any driving activity that is performed on the job (not including commutes), whether an employee drives a company-owned truck or drives his own car to off-site sales meetings, requires commercial auto insurance.

Every business that falls into this category is responsible for purchasing commercial auto liability coverage, which protects third parties from damages incurred in an accident that was the fault of the insured business. They are also responsible for insuring employees’ personal cars that are used for business purposes, because this coverage is often excluded from employees’ personal auto insurance policies. However, to protect the business’ costs following an accident, consider the following coverages in addition to liability coverage:

1. Comprehensive: Covers repairs/replacements if covered vehicles are damaged or destroyed due to fire, severe weather, theft or vandalism.
2. Collision: Covers repairs/replacements if covered vehicles are damaged or destroyed in an accident.
3. Uninsured/underinsured motorist: Covers your costs following an accident with an at-fault driver who is uninsured or underinsured.

Call us to review your business auto insurance option. Be sure to include details about the number and types of vehicles utilized by your business, the number of employees who drive on the job and the business’ ability to pay large sums in the event of a claim. As your independent agent, we will then shop for the most suitable policy on your behalf.

Protect your business at headquarters and on the road. Call Dain Insurance Agency at 909.396.6746 for more information on Diamond Bar CA business insurance.