When you run a company that handles deliveries or conducts any other business using company vehicles, then having a commercial auto insurance policy in place is a must. Specifically, the right business auto policy can provide you and your employees with the protection they need while behind the wheel. In the event that an employee is in an accident in a company vehicle, your commercial auto insurance policy can protect your business from being sued and help pay for repairs.
As you're shopping for your business auto insurance policy, however, there are a few common mistakes you'll want to avoid.
1. Overlooking Rental Reimbursement Coverage
If one of your company vehicles were to be stuck at the repair shop for a few weeks, would you be able to conduct business without it? If not, you'll need to rent a temporary replacement vehicle, which can be costly. This is where having rental reimbursement coverage can help save you money by helping to pay for a rental car while your company vehicle is in the shop for a covered repair.
2. Not Checking for "Additional Insured" Options
In order to insure multiple employees underneath the same vehicle, you'll need to make sure the policy you're purchasing has "additional insured" as an option. This will allow you to add as many employees as needed to your coverage so they can drive your company vehicle as needed.
3. Not Understanding What Can Affect Your Premiums
One thing that many business owners don't realize when they begin shopping for business auto insurance is that their employees' driving records can actually affect their premiums. With this in mind, it's a good idea to check employee driving records before hiring; they don't need to have pristine driving records, but lots of points on their license can result in higher premiums for you.
4. Skipping Out on Hired/Non-Owned Coverage
If your employees will be using their personal vehicles for conducting any official business, or if they'll be renting cars under the company name, make sure you have "hired/non-owned vehicle coverage" on your policy. This will provide you with liability and property damage coverage for added peace of mind, and it generally doesn't add much to your monthly payment.
These are just a few of the most common mistakes to avoid when shopping for a business insurance quote. By avoiding these mistakes, you can end up with a policy that best suits your needs.