If you run a business, you know insurance is important. Especially if part of your company's services requires putting employees behind the wheel. But what should you look for when it comes to choosing a car insurance plan?
This is one choice you don't want to speed through. While commercial auto insurance premiums can often be more expensive, they can save you money in the long run.
Here are some questions you should consider when shopping for a policy for your business.
What kind of cars will be covered?
Depending on your company's business model you may or may not own the cars being driven by your employees. Regardless, if your workers are driving for your company, you'll want to make sure any vehicles they're operating are protected in case of an accident.
Many companies offer "hired or non-owned" car insurance options. These additions can cover any vehicle operated by employees, regardless of ownership. It can even include protection for rented cars.
Do you need a personal or commercial policy?
As mentioned earlier, commercial insurance is generally much more expensive. However, it's not always required for a business. If your name is on a car's title, than you have to get personal insurance. However, if your company is listed as the vehicle's owner, than a commercial policy is required.
But just because you can get away with a cheaper personal policy, doing so might not be the best choice. Some features, like business interruption coverage, are only available under commercial policies. That particular option is important if your driver is injured on the job. It can allow you to recoup lost income while your employee is recovering.
Did you shop around and is your coverage sufficient?
Smart business people know never to take the first deal when it comes to choosing the best car insurance. Factors like previous accidents, your employees' driving history, and even parking locations, can affect your rates. Shop around and find a policy that neither over nor under insures your business.
Related Resources:
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How to Protect Your Business from Car Accident Suits (FindLaw's Free Enterprise)
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Employee Car Accident: Who is Liable? (FindLaw's Free Enterprise)
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Car Sharing Liability: Are You Covered? (FindLaw's Injured)
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Business Liability and Insurance Guide (FindLaw)
