Commercial Auto Insurance

You need commercial auto insurance if you use a vehicle in your business. You will want to provide the insurance agent with a complete picture of your vehicle use so they can apply it to the commercial auto insurance policy.

Your personal auto insurance policy will exclude coverage for commercial use of your vehicle. A commercial auto insurance policy will establish a definition of commercial use as well. It is important that you read the definition and discuss this with your insurance agent. If there is any question, it is better to obtain a commercial auto insurance policy so that, in case of an accident, there is no chance of being uninsured.

Commercial insurance policy premiums are affected by the following:

• Business Location - the location of the vehicles determines some of the premium.
• Type of Drivers - hire qualified drivers with safe driving records.
• Type of Vehicle - sales people may want sports cars, but five-star safety rated, domestic, mid-sized sedans have the lowest premiums.
• Vehicle Deductible - can your business afford part of the risk and maintain a high deductible? If so, your premiums will be lower.
• Safety and Anti-Theft Devices - alarms, GPS tracking, air bags, seat belts, and other such devices can significantly lower premiums.

Special Commercial Insurance Coverages and Considerations

Certain businesses must adhere to federal and state regulatory standards in the operations of their vehicles. For example, if your business will be hauling cargo interstate, there are specific Department of Transportation requirements for commercial insurance that must be met. You will need to make sure you have a thorough understanding of those requirements. Also, if you will be delivering or hauling for others or using other's equipment such as leased trailers or rental equipment, you will need hired or non-owned vehicle coverage.

Who is the Insured?

Make sure you know who the insured actually is. Very often businesses set up a leasing company to lease equipment to the main company and the leasing company is the titled owner of the vehicles. A common mistake is to identify the main company and not the leasing company as the titled owner on the policy. Sometimes the dba of the company and not the full name of the company is listed. You want the full name of the company as an insured, the titled owner, any affiliates, and dba, and all employees as insureds on your commercial insurance policy.

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Click here Commercial Umbrella Insurance