Do I need business vehicle insurance? Anyone whose daily duties involve using your own vehicle for business purposes needs to take up a business vehicle insurance policy. This policy is very different from the standard insurance coverage because it covers all risks that may arise from a wide array of scenarios such as driving to different driving locations. Note that some insurance will only compensate you if the insured car gets involved in an accident within the stipulated geographical location.
With business vehicle insurance, you can confidently visit your customers, attending meetings and conferences in different cities or towns stress free. This in turn enables entrepreneurs to concentrate more on their enterprises and other income generating activities. Nevertheless, the premiums attached to a business car insurance policy are higher than the domestic or standard car insurance. However, the short term and long term benefits surely surpass the initial costs.
So, is it important to have business vehicle insurance? Let us look at some of the core reasons why you should consider incorporating this risk management tool in your business.
Cover medical bills for third parties: This is largely dependent on the terms and conditions that govern provision of this policy. However, most business vehicle insurance covers medical bills for third parties involved in an accident if you are found legally responsible for the accident. Some of the insurance companies may decide to go a step further and hire attorneys to represent you in court in order to ensure the amount agreed upon as compensation is within the set limits.
Personal injury cover: The insurance policy will cater for all medical bills that may arise from your injuries. This in turn helps you save money and still meet your financial obligations as your recover. Be sure to follow the stipulated procedure when filing the claim in order to get the best results.
Cover lost wages: It goes without saying that you will incur losses as a result of the accident. Once you file a claim, you will be compensated for the lost wages and all other losses that resulted from the unfortunate incident. It is important to read and understand the specific terms and conditions that govern your policy in order to make an informed decision.
Property damage expenses: As the name suggests, business vehicle insurance provides coverage for all property damage expenses that may arise from an accident. For example, it will compensate persons whose property was affected by the accident.
Non-owned auto: Some of the insurance companies extend coverage to employees who get involved in an accident while working or carrying out business activities on your behalf using their own vehicles. Again, read and comprehend the policy document in order to avoid any regrets down the road.
Hired Auto liability cover: This is a unique coverage that covers enterprises, employees and business owners from expenses that may arise as a result of accident if they decide to temporarily rent, hire, lease or borrow vehicles from other businesses or persons.
Towing and labour: Simply put, the insurance policy may cater for the all towing and labour expenses that will be incurred in case of an accident or breakdown. Note that the coverage must be within the limits stipulated in the declaration page.
Substitute transportation: After an accident, you might be forced to seek alternative means of transport as your vehicle is replaced or repaired. The insurance company may also cater for the cost incurred to hire an alternative means of transport.
Note that these privileges vary from one insurance company to another.
So, what do you need to know when looking for a business vehicle insurance?
What are your expectations? The insurance company will ask you a number of questions when submitting your application. This helps them to choose the best insurance policy that meets your expectations and suits nature of your business. Examples of questions that may be asked include, how much time to do you spend on the wheel? how much work-related mileage are you likely to clock up every year or every month? It is recommendable to have your answers ready when applying in order to save time.
Compare and contrast different insurance policies? There is no standard business car insurance policy. Each insurance company has its own policies. Based on this fact, it is recommendable to compare and contrast different policies in order to make an informed decision. Choose an insurance policy whose premiums are affordable and within your financial capability.
Consider cutting the costs: Every business has to come up with ways of cutting their costs in order to maximise their profits. The cost of an insurance cover largely depends on the type or model of the vehicle being driven. Hence, you might have to pay more for car models that are expensive as compared to cars that are relative cheaper. Bottom line; consider investing in business cars that are affordable in order to enjoy low premium rates. Other innovate ways of reducing your premiums is by installing security devices such as immobilisers, tracking systems and steering wheel locks.
How much business vehicle coverage do you need? This is one of the frequent asked questions among business owners. Your coverage should be in line with business financial plans and nature of your business. Including more drivers on your policy will surely increase the chances of accidents occurring. Additionally, transporting more passengers increase the number of third parties that may be involved in any potential accident. All this facts have a direct impact on your liability exposure.
Last but not least, choose an Auto car insurance company that offers comprehensive coverage to their clients. Take time to carry out a background research on various insurance companies in order to get the most buck from your money. Eschew companies that have negative reviews or reputation in the market as this could be a sign of unsatisfactory insurance coverage.
Business vehicle insurance is indeed very important as it helps to manage risks and cushion businesses from unplanned expenses that may arise from an accident or theft.
Jake Smythe is a business owner from Sydney, Australia.