Automobile insurance for a small business is provided by any standard property and casualty insurer that provides automobile insurance. Depending on the nature of the business, a personal automobile policy may be adequate or a commercial automobile policy may be needed. One advantage of a commercial automobile policy is that a business will be protected from any losses.
- Most small businesses that choose to have a commercial automobile insurance policy will have coverage similar to that provided with a personal automobile policy. However, there are additional coverage options that are available on a commercial automobile policy. One type of additional option includes coverage for rented and nonowned vehicles. Coverage is also provided for an employee's vehicle that is driven for company use.
- Commercial automobile policies typically have higher limits than a personal automobile policy. As a result, small businesses can choose to have a coverage limit of up to $1 million or more depending on their needs. Liability coverage typically pays for damage from claims that result from accidents caused by a company's employees. Liability insurance will compensate the injured party while not causing any losses to the business.
- Small businesses that are thinking about purchasing a commercial automobile insurance policy have many factors to consider. One factor is that if employees are operating a company car, they should have a good driving record. If a business is leasing a vehicle or owns a vehicle, the business name should be listed as the principal insured on the policy.
- The premium that is charged for a commercial automobile policy is determined by various factors used by an insurer. Factors can include the type of vehicle being driven and the specific area in which the vehicle is being driven. Additional factors include safety devices that are equipped on a vehicle and the amount of the deductible that applies to the policy. Typically, a higher deductible can be used to lower the premium that is being charged for a policy.
- Commercial automobile insurance can be issued for one or more vehicles. When more than one vehicle needs to be insured, a commercial fleet policy can be issued. A small business can benefit from a fleet policy because all of its vehicles are insured with one policy. Most fleet policies require having anyone who will be driving a vehicle to be included on the commercial automobile policy.
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