Picking the right insurance for your company vehicle is an important process to ensure that all of your assets, your employees, and your goods are protected. Insurance is a useful tool that is good for individuals all the way up to protecting bigger entities.
If you own a company that also uses vehicles for operations or general use, then you are going to want to find the right insurance that covers your needs in this manner too. Vehicles are an added degree of difficulty because they present more challenges and potentially more issues like accidents. Here is a quick guide on insurance for your company vehicles.
What Type of Company You Are
Most companies that use vehicles use them as a method of transportation for employees around their area. Mining companies, electricians, maintenance workers, and pharmacies all have vehicles, but they are not the only companies that rely on a dedicated fleet of cars, trucks or vans. Of course, there are the main ones like trucking companies, but also some unique companies like food truck businesses. As mentioned by the folks behind https://www.freewayinsurance-ny.com/, how you use and for what purposes a company vehicle is used for can play a big factor in the insurance you need. Catering vehicles need coverage for more liabilities, like cooking equipment (grill, fryers, etc.) while freighters need to cover products that have to be refrigerated or are deliverables that can be broken. First consider what type of company you are and what you need the vehicles for.
Types of Company Vehicles you Use
The type of company you use will help determine the type of vehicles you use. A flower delivery business will more than likely be using commercial vans, which is a common vehicle, while a big shipping company will be using much more heavy-duty vehicles in their fleet like tractor trailers. The difference in vehicle sizes, otherwise known as classifications, is going to play a big role in determining the type of insurance. Bigger vehicles pose bigger risks because they require more training or qualification to operate. Similarly, some vehicles have more functions like a food truck, so it’s going to have more liabilities. Other companies use trucks or even regular cars, which requires less coverage.
Commercial Insurance for Company Vehicle
This is the most common type of insurance that you will likely be needing for your business. This is for using a vehicle that is a designated company vehicle, so it must be covered for any kind of activity it is used for during the work period. Using your vehicle to conduct a service is one of the main requirements for determining what is and isn’t a commercial vehicle. Ownership will be under the business name as well.
A little bit different from commercial vehicle insurance coverage is business-use insurance. This is particularly useful if you run a business/company as an individual and use your own personal vehicle for business purposes. An example would be providing music lessons to clients, but you drive yourself to their homes. This technically makes your vehicle a business vehicle, and should be covered under this kind of policy. This can be added on to your existing personal auto coverage.
Personal Auto Insurance
Speaking of personal auto coverage, you should have this for vehicles that are being used outside of the job site or working hours. You can use a company vehicle, like a truck for landscaping, as a personal vehicle as long as it is both covered as a commercial or business-use vehicle as well as covered on your existing insurance. Again, this is more relevant for people who are independent business owners that use their vehicle as a means to conduct their tasks.
Include Company Vehicle with your Business Insurance
Lastly, you will undoubtedly have coverage for your business, like covering assets, which should include your vehicles as well. This is not the same as commercial or business-use insurance which is intended to maintain the safety and legality of the company vehicle(s) but is intended to help make sure that vehicles are protected from other things. Theft, damages, bankruptcy, etc. are all possible things to consider protecting assets from with a business insurance policy.
Making sure your business is operating within the confines of the law and is doing so effectively is an important task for a business owner. Running your company is difficult and when you throw in vehicles to the equation, it becomes even more convoluted. That is why it’s good to understand why vehicle insurance is important for a business and what kind to look for.