If your business has a company car, you could be at serious risk of costly legal fees, medical bills and vehicle damage payouts, unless you have the right auto insurance policy in place.
Although personal auto insurance is thankfully commonplace, it can be easy to overlook commercial insurance, especially if you believe you are the only member of staff using the vehicle. Even if this is true if, for whatever reason, someone else had to get behind the wheel and they had an accident, your business could be liable for huge bills and a lengthy legal process.
It is best to have your commercial auto insurance took care of upfront, to minimize these risks.
This is why auto insurance is important for your business:
It will make sure your employees and business finances are covered
When you are a business owner, you are directly responsible for your members of staff. You are also liable for mistakes or accidents they have while they are working for you. If your business involves a delivery service or regular driving, you run a high risk of one of your employees having an accident in your company car, leaving you to foot the bill.
Without commercial auto insurance, your business finances will be vulnerable and could collapse your company if the payout is large enough. Beyond this, though, is the responsibility you have towards your employees. If they need your help in the event of an accident, it is your job to have the necessary cover to pay for medical bills or property damage. Therefore, it is imperative to have commercial auto insurance in order to protect your staff and keep your business going.
As a business owner, you need more comprehensive coverage
When you own a company, your business and personal life are joined. When you get up early, work late and come into the office on weekends, it is difficult to differentiate between your work and your home life. As a result, filing different paperwork to cover you at work is likely an afterthought. When you are at work, you think about getting your staff members insurance cover rather than yourself.
This is a mistake because when you drive under work conditions, you are exposed to different risks than you would incur under normal conditions. You are also representing a company, rather than just an individual, which leaves your business at risk in the event of an incident.
Think about it this way. If you were unfortunate enough to be caught up in an accident, you may have to spend time receiving medical attention, finding the money to pay for your accident damage and even locate a replacement company car.
All of this detracts from your business leadership, leaving your employees without a boss and your business without a strategy. Commercial auto insurance can help you with these problems and allow the day-to-day running of your company to remain smooth in the event of an accident.
If your company car is being repaired, you do not have to compromise your work schedule
If your company car was to need repairs or replacement in light of an accident, it could seriously impact your business. For example, if you cannot immediately find a replacement vehicle and you need to deliver products, you could lose customers as a result.
With commercial auto insurance, you are usually eligible for an immediate courtesy car, to help you out while your normal car is out of action.