Deciding Not to Have Business Auto Insurance is a Risky Gamble

Small Businesses who elect not to purchase commercial auto insurance are more at risk in the event of an auto accident if they are relying solely on their personal auto insurance. The most significant difference between a large and small business in this category of insurance is an independently owned business potential will not survive costs associated 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.

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. In these instances, commercial auto insurance can provide a range of protection if and when 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—both for your vehicle and any vehicles you hit. Commercial auto insurance can reimburse policyholders for the costs of vehicle repairs they may need following a crash, regardless of who is 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 for these expenses and can cover medical costs, lost wages and even legal fees should a lawsuit be brought against you.
  • Comprehensive coverage—Collisions aren’t the only source of vehicle damage your business needs to consider. Commercial auto insurance can provide comprehensive protection for 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) include roadside assistance coverage, new vehicle replacement cost coverage, towing reimbursement, rental reimbursement and gap coverage for auto loans or leases.

In summary, commercial auto insurance isn’t just for large fleets. Any car, truck, van, or similar vehicle used as part of your operations must be covered. 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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