The selection of commercial vehicle insurance for your business is a big one. This is often one of the most important steps you can take to reduce business risks, but only if the proper product is purchased. Working with an agent that specializes in this type of protection is the first step. Then, you need to consider the various types of products, what types and how many cars, trucks and vans you need to insure, and which policy fits all of your needs properly. There are plenty of reasons to put some extra time into the selection process, including costs and coverage limits.
Perhaps the most important component of commercial vehicle insurance is liability protection. In business, you cannot take risks associated with the management of your financial assets. If you allow your company car to be driven by an employee and that employee causes an accident, your business becomes liable for the costs. That could mean thousands, or in some cases, millions of dollars worth of money for a small claim. This can devastate any type of business.
This type of coverage should include bodily injury, which pays for injuries or the death of another person as well as property damage, which covers replacement or repairs to objects damaged. Property damage covers things like damage to other cars, lampposts, or other objects damaged in the incident. This type of liability protection will also cover the costs associated with defending yourself in a court of law, should that become necessary. All of these components of your policy have limits, though. You need to ensure the proper limits are selected when buying a policy based on the amount of risk you face, the type of car you own, and the budget you have.
Other Policy Options
Protecting other people and property is one step, but it is not going to do anything for your car should an accident leave you with significant repair needs. You may need to invest in more comprehensive coverage to cover the damage to your own car. Additionally, you may wish to select an add-on coverage, such as uninsured motorist and medical payment policies. These add to the layers of protection you will get. The right commercial vehicle insurance covers all of these risks you face and should wrap all coverage options into one policy for you.
It can be a challenge to protect your business. However, when you have the right commercial vehicle insurance in place, you reduce the risk to your employees, your assets, and to your business itself. It is worth investing in a comprehensive policy that offers all levels of protection possible.