Many people are unaware that to own a business, you will need certain types of insurance. You can’t just start a business because you want to make money. First and foremost, you should consider how to protect yourself financially in case something goes wrong. Whether your business is large or small, it’s still essential to have the appropriate insurance coverage. Here are some types of auto insurance that small businesses can avail of.
Liability Insurance
Liability coverage protects you from legal liability if someone is injured due to negligence. In most states, liability insurance is required by law and covers damage to another person’s property or injury to another person. You need liability insurance if you own a vehicle unless your business doesn’t use any cars for work purposes.
Your workers’ compensation policy also protects employees who are hurt at work or suffer an illness related to their job. But it’s very different from standard employee benefits policies and doesn’t cover the same types of injuries or illnesses.
Commercial Truck Insurance
According to a new report, around 1,221,000 private harm claims were filed in 2021 because of truck crashes. Commercial truck insurance can help protect you against losses while your commercial vehicles are in use.
Truck insurance is essential auto coverage for any business that owns or operates trucks for transportation, delivery, and more. Selecting the correct type of truck insurance to ensure you have all the protection you need when using your vehicle for business purposes is critical.
Commercial trucks generally include semi-trucks, tractor trailers, box trucks, and other large vehicles used for transporting goods from one place to another. This type of insurance covers any damages caused by accidents involving these types of vehicles. The policy also covers injuries suffered by other parties involved in an accident with a commercial vehicle and any cargo damage caused by such an accident.
Uninsured Motorist Coverage
According to Statista, more than 284 million vehicles were registered in the US during Q1 2022. But not all vehicle owners are insured, which is alarming. Uninsured motorist coverage is a type of coverage that protects you from damages caused by someone who does not have insurance. This coverage is often called UM coverage or UIM coverage. It is important to note that UM and UIM are two different types of coverage.
UM is more common than UIM, but both can be helpful if you are involved in an accident with an uninsured driver or a hit-and-run driver. UM and UIM protects bodily injuries, property damage, and other losses that were sustained by the insured as a result of accidents involving uninsured drivers or hit-and-run drivers.
Collision Coverage
If an NHTSA report is to be believed, 9,560 people died in auto accidents in the first quarter of 2022. Collision coverage pays for damage to your car caused by an accident. It’s a form of physical damage insurance. Collision coverage will pay for the cost of repairing or replacing your vehicle when you are at fault in an accident. If you’re not responsible, the other driver’s liability coverage will pay for repairs, which means they’ll have to carry enough bodily injury liability to cover their repair costs.
If you don’t have collision coverage, your vehicle’s depreciation can be significant if damaged in an accident. Suppose a driver hits another vehicle that doesn’t have collision coverage. In that case, they may have little recourse except to report the incident, pay out-of-pocket expenses (if uninsured), or make an expensive claim on their policy (if insured).
Medical Payments Coverage
Medical Payments Coverage is an optional coverage that pays for the medical expenses of you, your employees, and any passengers injured in a car accident. Medical payment coverage can be purchased as part of a comprehensive insurance policy or as standalone coverage.
Medical payment benefits are paid directly to the injured party and can be used to cover most medical expenses, including hospital stays, surgeries, and prescriptions. Medical payment benefits are also not subject to reimbursement by health insurance plans like Medicare or Medicaid.
Bottomline
There are many different types of auto-insured insurance for small businesses. Knowing which is right for you will help ensure that your business is covered and protected while keeping costs low.
We hope that we have helped you understand the different types of auto insurance available for small business owners. If you’re looking to save money on your premiums, making sure your policy is as comprehensive as possible while still offering the coverage you need is essential. We recommend ensuring that all drivers listed on the policy carry minimal liability coverage to avoid any potential financial burdens down the road should they cause an accident while driving under someone else’s name.
