Running a business requires an owner to think of many different things, from paying employees to ensuring that the taxes are paid. One thing that cannot be overlooked is the importance of carrying the right type of insurance. While most do understand the value of liability insurance for their business, many don’t put enough emphasis on buying Commercial Auto Insurance: What Business Owners Need to Know Before an Accident Happens will help them understand why it’s so important.
Refusal of Payment
If an employee causes an accident while driving a company vehicle, but it’s only covered by personal insurance, the insurance company may refuse to pay the claim. This means that the business will have to cover those costs, which can be very expensive depending on the severity of the accident.
Appropriate Levels of Coverage
In many cases, the level of coverage provided by commercial insurance is more comprehensive than that of a private policy. Liability coverage can be purchased at higher levels, for example, which will protect the company should their employee be at fault in an accident. It will also provide protection should the company vehicle be faulty and lead to an accident.
One of the most vital types of coverage for most companies is for property damage of company equipment or products. Private insurance doesn’t cover replacing items in a vehicle that are lost and damaged due to an accident. Instead, they expect the driver’s home or renters insurance to cover this.
For a business, however, commercial insurance can cover loss of company property after an accident. This is a big deal when expensive computers or other equipment are being carried in company vehicles.
Coverage for Many Drivers
Another reason business owners need to carry commercial auto insurance before an accident is because it covers any licensed driver. In some cases, a vehicle might be assigned to a specific employee. However, there are a lot of companies that share vehicles between employees, and the coverage extends to all of them.
Before an accident occurs, it’s important that a company manage their insurance coverage correctly. Without it, they open themselves up to liability issues that can cripple them financially. It’s also important that they have access to a lawyer in case an insurance company doesn’t pay when they’re supposed to. This will ensure the right level of coverage to protect a business from financial disaster.