Many small businesses falsely believe that their employees’ personal auto insurance will cover them as they drive their own vehicles for company business. However, businesses are required to hold specific business auto insurance policies.
Whether your business has a fleet of company trucks for deliveries or your employees drive their own vehicles to meetings, your company is at risk if you don’t have commercial auto insurance.
With shut downs resulting from the COVID-19 pandemic, many businesses are now offering delivery for the 1st time to try and survive. Some Insurance carriers have made modification to their business policy to cover business delivery driving exposure, but you need to ask for the endorsement.
Understanding Business Auto Insurance Basics
A business auto insurance policy protects your business in the event that an auto accident occurs while your employees are conducting company business. The major areas of your business auto insurance policy are similar to your personal policy.
Collision Coverage – Coverage for damage to your company’s vehicle sustained during an auto collision.
Comprehensive Coverage – Coverage for damage to your company’s vehicle for damage sustained in circumstances not related to a collision, including fire, theft, vandalism, and storms.
Bodily Injury and Property Damage Liability – Coverage for injuries or property damage incurred by other drivers or pedestrians.
Personal Injury Protection / Medical Coverage – Coverage for injuries sustained by your employees.
Uninsured/Underinsured Motorist Coverage – Coverage for your employees and your vehicle in the event that the motorist who caused the accident does not have insurance or has a minimal amount of coverage.
Unlike a personal auto insurance policy, it is also essential for a business policy to include:
Employer Non-Owned Car Liability Coverage – Coverage for you and your employee if an accident occurs when your employee is using his or her private vehicle to conduct company business. It is important to note that his or her personal insurance policy will not cover accidents that happen during business operations on your behalf.
The Right Amount of Coverage
Leveraging over 100 years of experience, BearStar Insurance agents have a deep understanding of what California business owners need - and don’t need - when it comes to their insurance coverage. From general business and workers’ compensation to independent contractors and cybersecurity, we work with some of the best carriers in the industry to provide you with custom-fitted, comprehensive protection at the best possible price. We value the relationships we build with our clients; fill out this form to get a quote or call us today at 949-979-5251 to speak with your local agent.