Business owners use commercial vehicles for delivering goods to clients and picking up supplies every day. The travels increase the mileage on the vehicles, and the business owners need proper insurance to cover liabilities related to the vehicles and long- or short-term delivery services.
Commercial vehicle insurance helps cover liabilities and accidents that are caused by commercial drivers or others on the road. Business owners who aren’t sure if they are prepared can read the 5 facts to keep in mind about commercial vehicle insurance.
1. Doesn’t Cover Accidents on Personal Time
Separate policies are necessary for company and personal time. The commercial insurance coverage applies to accidents that happen during business hours and when the drivers are completing work-related tasks. Depending on the coverage level, the insurance might cover injuries for the other party and the commercial driver. Standard policies cover the other driver and liabilities related to the accident.
Commercial drivers or the business owner cannot get commercial coverage if use the vehicle for personal tasks. If the business has specified business hours, the business hours dictate when auto insurance coverage starts and stops. Business owners who use the vehicles must park the commercial vehicle at the end of business hours, or they need to purchase personal auto coverage to protect against liabilities during personal hours. Business owners who want more details about the policies can get help from EINSURANCE now.
2. Insurance is Required for All Commercial Vehicles
Commercial insurance is required for all vehicles owned or operated by a company or individual who provides commercial driving services. The vehicle insurance must cover at least others who are involved in the accident when the commercial driver is at fault. The coverage must include bodily injury protection or coverage for medical treatment, and it must cover the cost of repairing the victim’s vehicle.
The type of commercial vehicle might play a role in what type of commercial vehicle insurance is required. For example, 18-wheelers require more substantial insurance than a standard sedan used for commercial purposes. The insurer conducts a risk analysis and identifies all risks related to the type of commercial vehicle. The vehicle owner must purchase and maintain at least liability coverage to protect other parties. Insurers present details about all policies available to the business owner to protect their investment.
3. The Lowest Premiums Aren’t Always the Best Options for Coverage
The lowest premiums aren’t always the best options for coverage. It is vital that the business owner reviews the terms of the policy before accepting it. Commercial auto insurance policies that aren’t advertised as the most affordable won’t give the owner the fullest level of coverage. The terms are often thinly veiled and if the owner doesn’t pay attention they’ll end up with a policy that doesn’t offer much coverage at all.
A standard policy provides bodily injury liability coverage, property damage liability coverage, and a combined single limit for injuries. Medical payments for the driver and their passenger are added to the policy. Under and uninsured motorist coverage, comprehensive physical damage, and collision coverage are also available for commercial vehicles. Business owners review the terms and the amount of coverage for each type of protection offered by the insurance policy.
4. The Drivers Must Maintain a Safe Driving Record
The drivers must maintain a safe driving record at all times. When hiring drivers, the absolute first attribute to review is the driver’s driving record. Business owners want someone who is experienced and will pass all Department of Transportation requirements. However, it is the driver’s past record that affects commercial vehicle insurance the most. It doesn’t matter if the commercial driver received a DUI ten years ago. It is advantageous for the business owner to conduct a conclusive review of the driver’s driving record.
The driver’s past record doesn’t just increase the premiums for commercial auto insurance. It also presents several liabilities that might increase the likelihood of an accident and financial losses for the business owner. A risk assessment shows business owners what to avoid when hiring commercial drivers in terms of liabilities and possible risks on the road. Increases in premiums also occur when the business owner needs to file a claim for an accident. Hiring safer drivers lowers the risk of accidents and keeps the premium lower.
5. Recording Collisions Helps Business Owners
Recording collisions helps the business owner prevent misunderstandings. Using a dash camera to record all the driver’s travels gives the business owner immediate evidence if an accident happens. The cameras are installed to collect footage of everything in front of the vehicle. The footage stops other parties from claiming that the commercial driver caused an accident when they didn’t. When mitigating risks, it is invaluable for the business owner to collect the footage from each vehicle at the end of each business day and store backups for the footage in a safe location.
Cataloging the footage helps the business owner find footage of an accident quickly and use the footage for defending the company and its driver against a lawsuit. Using proper storage devices and ensuring that the camera starts with the vehicle is paramount. The drivers cannot tamper with the cameras at any time, and controls that prevent tampering must be set up in the vehicles. It is vital for the business owner to test the cameras at regular intervals and ensure the cameras work properly at all times.
Business owners purchase commercial vehicle insurance to protect their investments and prevent accident liabilities. Funds are available through the insurance policies and offer payments for medical treatment and auto repair costs. Select policies pay for damage to the commercial vehicle and injuries sustained by the commercial driver. Reviewing the terms of the policy defines what coverage is available to the business owner and their drivers. Examining a commercial driver’s record helps the business owner avoid serious risks and higher-than-average insurance premiums. Recording collisions can also provide help for business owners when their drivers are accused of causing an accident.
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