5 Reasons to Buy Commercial Auto Insurance

Business owners have many expenses to consider, and it can be tempting to save by skimping on Commercial Auto Insurance coverage. However, spending a bit more money in the beginning can result in significant long-term savings. Below are a few reasons to buy commercial auto coverage.

Registered Drivers

An important factor to evaluate when buying commercial insurance is to whom a vehicle is registered. If it is in the business’ name rather than that of an individual, commercial insurance is essential. Even if a vehicle is individually registered, it still may need commercial coverage if it is used primarily for business purposes.

Performing Work Duties in the Vehicle

If a driver only carpools to work, they may not need commercial auto coverage because accident injuries are typically covered under a personal policy. However, if the car is used to drive clients around, Commercial Auto Insurance can offer protection. Those who transport goods across state lines or fulfill job duties in the vehicle should be covered by a commercial policy.

These Policies are All-Inclusive

A specialty insurance policy often comes with limited coverage, but there’s no such limitation on commercial insurance. When a business buys this type of insurance, it is protected with a variety of coverage such as property damage liability, bodily injury liability, uninsured motorist, collision and comprehensive coverage.

Commercial Insurance Can Mitigate the Damage Caused by a Lawsuit

No business owner wants to be sued, and a single accident in a vehicle without proper insurance coverage can bring financial ruin. If property damage and injuries are severe, a smaller company may be driven into bankruptcy. However, with commercial coverage, the policy absorbs most of the cost, allowing the company to continue its normal operations.

It May be Legally Required

Many areas require cars used for business to be covered by commercial insurance. Ensuring that any company vehicle is adequately covered is an important responsibility for a business owner, regardless of the company’s size. While cutting corners on insurance can seem like a good way to save money, it can be financially disastrous. Those with questions on commercial insurance can contact a local agent or visit Nepainsurance.com.

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