No matter how big or small your business is or what industry you work in, chances are you use vehicles in your day-to-day operations. Whether it’s a single company car to get you around or a fleet of vehicles involved in multiple projects, in today’s competitive marketplace, vehicles drive business.
Unfortunately, commercial vehicle insurance can often be complex and difficult to understand. Without this unique form of coverage, however, you could face financial losses that could seriously damage your company. With that in mind, here are five simple ways to tell if you need commercial vehicle insurance.
1. You Use Your Vehicle in a Commercial Capacity
The first question to ask yourself is whether or not your vehicle is being used for business. For example, if your vehicle is being used on a regular basis to carry equipment, deliver goods, transport people or provide a service (such as towing or snowplowing), you’ll need commercial vehicle insurance to properly protect you and your business.
That being said, different types of vehicles also require different types of commercial vehicle insurance. A taxi for example, would have different requirements than a vehicle used by a sales person, and a long-haul truck may also require some additional form of transportation insurance. The best way to be certain that you have the right type of commercial vehicle insurance is to speak with your broker and see what options are available.
2. You Operate Multiple Vehicles for Your Business
If you operate four or more vehicles in support of your business, you may want to consider a specialized type of commercial vehicle insurance known as Fleet Insurance. This type of coverage tends to cost less than individually ensuring each vehicle and often provides a single policy that covers multiple vehicles (making administration and renewal much easier).
Fleet Insurance also allows you to maintain multiple employee drivers, allowing you to have a flexible commercial vehicle insurance policy that can meet the demands of your business.
3. Employees Drive Your Vehicle
If employees (or anyone else associated with your business) drives your vehicle, then you’ll definitely need some form of commercial vehicle insurance in place. As mentioned earlier, Fleet Insurance allows you to have multiple employees as drivers of your vehicles, but you can also customize your policy to select only a few key personnel.
Regardless of what specific type of policy you choose, if any employees are operating your vehicle, then you’ll need some form of commercial vehicle insurance to protect you from any financial damages that might result from an accident.
4. Your Business Could Suffer as a Result of a Vehicle Accident
As a general rule when looking for commercial vehicle insurance, you’ll want to make sure you have a knowledgeable team of insurance brokers who will understand your business’ specific needs. Additionally, a qualified insurance broker can help implement a risk management program to help eliminate potential problems before they occur. Most importantly though, having the right commercial vehicle insurance in place means that you can spend more time focusing on your business and less time worrying about what might happen on the road.