We are the Business Auto Insurance specialists in San Diego
As a business owner, you may have one or more vehicles, such as delivery vehicles, taxis, limos, or buses. The right business auto insurance covers you for accidents, injuries, and other incidents that can put those investments at risk.
What commercial auto coverage do you need, and how much?
What risks to you, your drivers, and your business that business auto insurance can cover?
Driver Distraction and Commercial Automobile Operation
The Department of Transportation investigated the impact of distraction in the commercial motor vehicle (CMV) crashes and safety-critical events in 2009. They found the following:
Drivers were involved in non-driving tasks in 71% of CMV crashes
Distracted driving caused 46% of near-crashes and 50% of safety-critical events
Types of Vehicles Business Auto Insurance Covers
Business automobile insurance is a broad term that refers to most commercial business automobiles, including but not limited to:
Business auto policies cover personal cars used for business and SUVs, light-duty trucks, buses, limousines, taxicabs, vans, and other delivery vehicles used solely for business purposes.
The use of these automobiles is associated with a range of risk factors, including how you use them, how often, and how many miles they travel each year, among other factors. Insurance companies review these risk factors along with any efforts your company may make to improve driver safety when they assess the amount of coverage your business needs.
Refer to the commercial truck insurance section if you are looking for coverage information on large trucks and heavy equipment used for business purposes.
What Does Business Auto Insurance Cover?
Business auto insurance is similar to personal auto insurance in basic coverage, such as liability, comprehensive, collision, and other coverage types specific to business vehicle use. A business auto policy protects your business from significant losses that could affect your company’s financial well-being.
Business auto insurance policies combine several different types of coverage – some are required, and some are optional. A typical policy includes some combination of the following:
Bodily injury liability: This portion of the business auto policy covers harm to others in an accident caused by you or your employee. Bodily injury coverage will provide compensation for medical costs, funeral costs if necessary, and the costs associated with a lawsuit. The amount of payment your company receives depends upon the limit set on your bodily injury liability coverage, as well as your deductible.
Property damage liability: This coverage will pay the costs to repair property damage caused by you or your employee. The limits and deductibles determine the amount of coverage you receive. It is a good idea to work closely with an independent agent to assess your risks as well as the potential costs of injury, property damage, and legal fees. For the best protection, consider buying a commercial umbrella liability policy.
Collision: As with your personal auto policy, a good business auto policy should include adequate collision coverage to pay for the damage to your vehicles in the event you or your employees cause an accident.
Comprehensive: Also known as “other than collision,” your comprehensive coverage is essential protection for damage to your vehicle or loss due to causes other than collision. These causes can include weather, theft, and vandalism.
Uninsured and underinsured motorists: If one of your drivers is in an accident caused by another motorist who does not have adequate insurance, this coverage will help pay for damages and injuries to your vehicle and your driver, up to the limits set on your policy.
Medical payments: This coverage pays for medical and funeral expenses for you, your drivers, and passengers after an accident.
Additional optional coverage: A wide range of other coverage types may be available, depending on the insurance company you work with and your state of domicile. For example, you may be able to buy coverage for your employees when they drive a car or truck your company does not own.
You might also buy coverage for rental reimbursement if your company car is in the shop. You could opt to get towing and roadside assistance. Some insurance companies even provide specific coverage for companies who load and unload cargo due to the increased liability risk involved.
The right business auto insurance can protect you, your business, and all of the drivers in your commercial cars, vans, pickup trucks, or limos in an accident. One of the most critical ways to protect your company is by having adequate liability coverage if you or one of your employees causes an accident that injures another person or damages their property.
Does Business Auto Insurance Cover Personal Use?
Small business owners and entrepreneurs often use their cars while on the job without a second thought. However, it is essential to know that your insurance may not cover the commercial use of your auto.
It’s prevalent for a small business owner to send an employee out on an errand, whether to get supplies from the local store or to give a business consultant a ride from the airport.
If the staff member gets behind the wheel of his car, and the business owner does not have a commercial auto insurance policy that covers that worker and his car, any injuries or damage resulting from an accident may not be covered.
Regardless of how much or how little you and your employees use personal vehicles in doing business, getting adequate coverage in place can prevent a financially damaging event from putting your business at risk.
An independent agent like Fusco Orsini & Associates can provide all of your commercial coverage through one office. We can sit down with you, get to know your business, and learn how you and your employees use your business automobiles.
We’ll ask a variety of questions designed to get you not only an accurate proposal but also find discounts that may be available to you.
We will ask questions such as:
How many commercial automobiles do you have?
How are those vehicles used? For example, do they transport people, goods, hazardous materials, or food?
How many miles does each vehicle typically travel in a year?
How many drivers do you have?
What are their ages and level of experience?
Have your drivers taken a safe driving course?
Suppose you’re in the market for business auto insurance in San Diego and beyond or have coverage already but aren’t sure it’s comprehensive or competitively priced. In that case, we’ll give you an open and honest assessment of your insurance to determine whether or not you can do better.