Operating at least one vehicle is part of running many kinds of businesses. It can be troubling, though, to think that an accident might end up costing your company a ton of money. That's especially the case if someone injured in an incident ends up seeking compensation for catastrophic injuries and medical costs. With that in mind, let's take a look at some of the ways businesses can benefit by being properly insured.
Dealing With Coverage Gaps
A vehicle that ends up in a dual-use situation can be the source of coverage gaps. If you're using a personal vehicle to conduct business, such as being a freelance graphic designer meeting with clients, you may have a gap if an accident occurs while you're traveling. A similar sort of gap applies when a vehicle covered by commercial auto insurance is being used for personal purposes, such as a roofing contractor using a work truck. Talk with your insurance agent about all the uses you intend to use your vehicle for in order to get the complete coverage you require.
First- and Third-Party Liability Coverage
From a business perspective, exposure to liability for an accident is a major concern. Without insurance to step in and cover costs of injuries to third or first parties, folks may be forced to become plaintiffs in lawsuits. This means they'll be coming directly at your business for compensation to cover things like medical bills, pain and suffering, lost wages, and other forms of damages.
If the nature of your business requires you to rent equipment, having a commercial auto insurance policy in place may be required. Some rental companies simply will not let a piece of equipment off their property without a copy of an insurance policy in hand because they can't afford the risk exposure. This type of insurance is known as secured coverage, and it's definitely a topic you'll want to bring up with your agent if you expect to rent equipment or vehicles at any point.
You'll need to provide your agency with the legal name of your business, a tax ID, and relevant contact information. If anyone besides you will be operating a vehicle or a piece of equipment, you'll also need to list the number of employees on the policy. It's a good idea to also list any hazardous materials, heavy equipment, or valuable items that might be hauled.