When looking at a private auto insurance policy compared to a business auto insurance policy, especially one that covers delivery drivers, it may seem like the policies are quite similar. On the surface, they actually do look very similar. However, for businesses that make deliveries, especially in a company vehicle, it’s important to understand a few things involving insurance. Keep reading to learn more about Delivery Drivers and Your Business: Insurance Insights You Need to Know Before an Accident Happens.
Commercial Insurance Versus Private Coverage
There are two areas of commercial insurance that makes it stand apart from private coverage. The first is what is covered in the event of an accident. The second is how much it costs to gain that coverage.
Higher Levels of Property Damage and Liability Coverage
The reason why a commercial policy will have higher levels of coverage is because, from a liability standpoint, more people could potentially be driving a commercial vehicle. This can increase the likelihood of an accident. In addition, the commercial vehicle may be driven quite often and this, statistically speaking, can increase the probability of accidents as well.
Why are these Increases Necessary
Property insurance is often much higher in a commercial policy, especially given situations where a company employee may have products or a large assortment of company tools and other accessories in the vehicle. Should these items be lost in a crash or stolen, having higher levels of property insurance can help cover the cost of losing company property, to say nothing about the standard protection property damage insurance offers in an auto accident.
The Most Glaring Difference: Cost
Lastly, this heightened level of insurance will cost more. This is perhaps one of the most glaring differences between private insurance and commercial insurance. It’s also something a business owner will need to consider when they’re thinking about purchasing company vehicles.
Not having the correct amount of commercial insurance as it relates to delivery drivers can be decimating to your business should an accident happen. That’s why speaking with an insurance expert to determine your liabilities and the type of insurance coverage you need will help your business greatly down the road should an accident happen.