No matter the size of your business, if you have a fleet of vehicles that are used for work, then you need to get commercial auto insurance. You can face a number of risks when your business involves driving, so you need to make sure that you are covered. If you’re not sure why commercial auto insurance can be a benefit to you, or you aren’t sure how it differs from personal auto insurance, you can find those answers and more here.

Risks Faced Without Commercial Auto Insurance

When you have employees out on a job in one of the company’s vehicles and it isn’t insured with commercial auto insurance, it can be a disaster. When the vehicle is being used for the purpose of work, then any personal insurance that an employee has, for example, is no longer valid, so that can’t be something to rely upon.

You can’t cut corners in your business and rely on personal auto insurance for employees to reduce costs because it can come back to affect the business in big ways if there is a work-related incident. As a result, without the right commercial auto insurance in place, the business could face major financial issues. These include:

• Covering the costs of any damage that occurs to your vehicle, as well as any other vehicle. The costs would need to cover damage to property too.
• Damage caused by vandalism or accidental damage such as a falling tree.
• The medical costs associated with accidents that occur to employees, as well as the public, that happen through a collision or when loading or unloading.
• Damage to your own fleet of vehicles if they are in a collision with another uninsured driver.

Depending on your policy, these are all costs covered by your commercial auto insurance. If you needed to make a claim, it would be much more than the cost of your policy, so from a financial point of view, it can definitely be worth it.

Why Does a Business Need Commercial Auto Insurance?

Getting commercial auto coverage for your business will protect businesses of all sizes against any litigation. This can occur when employees are out on jobs driving your fleet of vehicles, and anything from a fender-bender to a serious accident occurs. There can be medical costs to consider, as well as vehicle repairs, especially if one of your drivers was at fault.

Auto insurance also covers theft or vandalism. Many trade business vehicles can be at risk of theft and vandalism as the vehicles may contain valuable items such as tools and equipment. While your team likely cleared the vehicles overnight, that wouldn’t stop a would-be thief from trying to break in. If the worst happens, at least you would be covered with commercial auto insurance.

Benefits to Small Businesses

Small businesses face several challenges, and one of them is the expenses they have to face. Employees are one of the biggest expenses, as you need to make sure that you are paying them fairly and giving them the benefits they want, so they keep working for you. This kind of stability can be expensive for a small business.

If you are not protecting them by making sure that medical costs would be covered if they are injured in one of your vehicles, it can lead to greater costs and potentially put you out of business.

Having commercial auto insurance for a small business is something that can be paid for each month, but still be affordable to suit the budget of the business. You will protect yourself from being sued if an accident occurred, as well as other costs already mentioned. Also, a small trade business would mean some projects or jobs would have to stop if tools were stolen out of the vehicle or someone vandalized the van overnight.

We know that no small business, or business of any size, wants to face these kinds of incidents. However, you never know what could happen in the future, which is why it is best to protect the business with the kind of auto insurance that will help.

You can hire a team of employees who are the most careful drivers out there, but you never know what can happen when they’re out on a job and there is a snowstorm, a jaywalker, or an uninsured driver. By getting commercial auto insurance, you are helping your business and doing all that you can to minimize the risks.

With monthly payments that are affordable, it can be a cost-effective way to protect your business and protect your employees, and keep the business moving even if an incident with your fleet occurs.

Commercial Auto Insurance for Your Business

Having commercial auto insurance means your business is covered when accidents and incidents occur while employees are out driving your fleet to work. It is something that should be standard, especially for trade businesses. If you wouldn’t be able to afford to deal with a costly lawsuit against the business, leaving you at risk of losing your business, then you can’t afford to not have commercial auto insurance.

If you want to find out more about the commercial auto insurance that we offer for businesses based in NJ, then contact our team today. We look forward to hearing from you.