Small Businesses With No Commercial Auto Insurance Are Taking A Big Risk

Small Businesses that don’t purchase commercial auto insurance are gambling. If a company car is ever in an accident, you’re more at risk IF you’re relying solely on their personal auto insurance. Here’s why.

What Is Commercial Insurance?

The most significant difference between large and small business insurance is this… If you own your business independently, you may not survive the costs that come with an accident. In other words, not only should businesses of all sizes make sure their drivers and employees using company vehicles are insured but realize personal auto insurance plans will not be enough coverage. 

“I will admit, I am aware of several small businesses which financially did not survive an accident. Either involving an employee in a company vehicle or an owner using a company-owned car in the process of doing business,” said Autumn Insurance President and CEO, Curt Rader. “This, frankly, is not a risk worth taking. I have also worked with a number of companies whose business auto insurance policies could have very well saved the company from disaster.”  

When it comes to running a business, vehicles—whether they’re leased, rented, or owned—are crucial for various tasks. Whether transporting materials and tools to worksites, hauling goods for deliveries, or driving to meet clients—companies of all kinds rely on safe and functioning vehicles to serve customers and generate profit.

Benefits Of Commercial Insurance

Companies of all sizes should turn to commercial auto insurance, which can provide the following significant benefits:

  • Liability coverage—Collisions don’t just impact vehicles—they can cause expensive damage to nearby property and valuables. Commercial auto insurance can provide a range of protection if you damage another person’s vehicle or property in an accident.
  • Physical damage and collision protection—Following an accident, you or your employees may need to pay for vehicle repairs. This includes your vehicle and any vehicles you hit. Commercial auto insurance can reimburse policyholders for the costs of vehicle repairs. This is true even if you’re at fault. Many policies even provide coverage for uninsured and underinsured motorists, providing an extra layer of protection.
  • Medical payment and lawsuit coverage—Collisions often result in bodily harm and expensive medical costs for you and those involved in an accident. Commercial auto insurance policies offer some protection. It can cover medical costs, lost wages, and even legal fees.

Additional Coverage You Can Add

  • Comprehensive coverage—Collisions aren’t the only source of vehicle damage your business needs to consider. Commercial auto insurance can provide comprehensive protection. It can cover damages unrelated to an accident (e.g., losses related to theft, floods, vandalism, and fires).
  • Protection beyond personal auto insurance policies—Simply put, personal auto insurance doesn’t provide adequate coverage for any accidents while policyholders are driving for business purposes. In the absence of commercial auto coverage, companies would have to pay out of pocket should employees get in an accident while making deliveries, picking up supplies, or using a vehicle to perform essential business functions.
  • Optional add-ons for even more security—Beyond standard protection for collisions, commercial auto insurance policies can often be customized to meet your needs. Standard policy add-ons (also known as endorsements) are very beneficial. They include roadside assistance coverage, new vehicle replacement cost coverage, and towing reimbursement. You may also want to include rental reimbursement and gap coverage for auto loans or leases.

Autumn Insurance Can Help

In summary, commercial auto insurance isn’t just for large fleets. You must cover any car, truck, van, or similar vehicle that you’re using as part of your operations. Understanding Michigan’s auto insurance laws help, too.

To learn more about commercial auto insurance and secure a policy of your own, contact Autumn Insurance today at 248-478-1177 or view our business auto insurance options and make an appointment with Autumn’s Sue Armstrong here.  

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