Why Your Business Still Needs Car Insurance


Having an employee call you to tell you that they have had an automobile accident is not fun. However, as a business owner, you understand that accidents happen. If an accident occurs with your company’s fleet vehicles, is your business adequately protected with the right insurance? Here are some reasons why your business still needs car insurance.

The Importance of Having the Right Type of Car Insurance

As a business owner, you pay for several types of insurance. For example, you probably have insurance for your office space and your business’s assets. You likely have liability insurance that can protect your investments.

You may even have the minimum auto insurance coverage for your vehicle. However, if you have company vehicles that your employees use or a car that you use for business transportation, you will likely need to have business car insurance to protect against potential loss. If your vehicle is used in conjunction with your business, your car insurance may not adequately cover you.

What Type of Insurance Do You Need for Company Vehicles?

When you have several vans or work trucks registered to the business, you want to ensure that each one has the proper insurance to protect it from any risk. Commercial auto insurance can be tailored to meet the specific needs of your business. It gives you the protection required while offering deductible levels that make sense for your business’s financial situation.

Typically, commercial auto insurance will include the following.

Liability Protection. This protects your business if there is an accident and you or an employee injure a pedestrian or cause damage to property or another vehicle. Liability is what covers the injured person’s medical costs as well.

Collision Coverage. This protects you from damage done to your vehicle when there is an accident. With collision coverage, it does matter if the driver of your company vehicle was at fault or not.

Comprehensive Coverage. This protects against natural disasters, storms, and other external things that can severely damage your vehicle.

Using Personal Vehicles for Business

If you or your employees use their personal vehicles for work, make sure that your auto policies have sufficient liability coverage. It may be wise to include a non-owned auto endorsement in your business’s commercial auto insurance policy. This can protect your business if there is a lawsuit stemming from an employee’s car accident while they are on the job.

Accidents are unavoidable and happen more often than you might think, especially if you have more cars on the road. Having the right auto insurance for your company’s vehicles can help minimize your financial liability, which will protect you and your business in both the long and short term.

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