Commercial Auto Insurance: What Business Owners Need to Know Before an Accident Happens

Businesses end up using company-owned vehicles for a number of vital purposes. Delivery vans and medium-sized cube trucks are most often the types of commercial trucks fielded by retail businesses such as furniture sellers, appliance and hardware dealers, and package delivery services.

Repair services have their own fleets of vehicles, hotels use shuttlebuses, and offices use company cars and vans for their employees. The law outlines requirements and liabilities connected with commercial vehicle use. This is why it is important to explore the issue of Commercial Auto Insurance: What Business Owners Need to Know Before an Accident Happens.

Responsibilities And Liabilities

The driver of any commercial vehicle of any size has the exact same responsibilities as any private car owner commuting on the roads. In the event of an accident, the driver has obligations to remain on the scene, exchange relevant information with the other driver, and answer all questions asked by police on the scene.

It is also necessary to file detailed accident reports about the incident. The company, however, holds primary liability as owner of the vehicle, and this includes whether or not there was negligence involved in allowing an unqualified person behind the wheel.

The Inexperience Factor In Accidents

This is becoming a thorny problem in the trucking industry given the retirement of veteran drivers and a flood of raw recruits, most of whom don’t remain in the job more than a year or two. The potential for serious or even lethal accidents involving inexperienced drivers is considerably increased.

However, even ordinary businesses using utility vehicles on the road are experiencing this problem. Employee turnover creates new chances of a vehicular incident every day. As a result, business owners have to be apprised of the issues involved and pitfalls in not having adequate preparation and coverage.

What The Business Owner Can Do To Protect The Company

The purchase of a comprehensive commercial vehicle insurance policy is the best protection any business can undertake to shield owners and assets from excess liability. Business owners who rent, lease or own any vehicle to be used by more than one employee need coverage. This coverage should also extend to protect employees who drive their own vehicles on company business during company time.

Liability coverage is mandatory. However, coverage for all potential hazards such as medical expenses, property damage, breakage of cargo, and uninsured/underinsured motorists guarantees complete protection in legal and financial terms.