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Do You Really Need Commercial Auto Insurance?
If you own a contracting business, commercial vehicles are one of your company’s most significant expenses. That’s why it’s so important to ensure these valuable assets are fully covered. To help choose the best commercial auto insurance policy for your small business, this article will explore the coverage, cost, and benefits of this insurance.
What is Commercial Auto Insurance?
Commercial auto insurance covers vehicles used for any business purposes. Different scenarios include:
You’re a sole proprietor, self-employed, or own a small business that uses a vehicle in any capacity (other than commuting from home to the office).
You own a vehicle (or a fleet) and pay someone else to drive it, making you liable for their insurance. It is the employer’s responsibility to sufficiently insure the vehicle with the right coverage for business use. Whether it’s one vehicle, 5, 50, or 500, any vehicle used for work purposes needs commercial auto insurance. The good news is that any company vehicle covered by commercial auto insurance is tax-deductible.
You pay an employee to drive their personal vehicle for work-related driving, you must insure the vehicle for work-related purposes only. For example, if you own a home handyman business and your workers use their own trucks, you must put commercial car insurance on their vehicles.
4. Contractors who are not employees of your company are required to insure their own vehicles. So if you hire contractors, you are not responsible.
If you own a contracting business, commercial vehicles are one of your company’s most significant expenses. That’s why it’s so important to ensure these valuable assets are fully covered. To help choose the best commercial auto insurance policy for your small business, this article will explore the coverage, cost, and benefits of this insurance.
Liability coverage: Bodily injury and property damage liability insurance will cover loss of life or property, as well as damage and harm done to any person or property caused by your vehicle.
Medical payments: Personal injury protection covers any medical expenses caused by diagnosis and treatment of any bodily injury or physical damage caused by the collision, regardless of fault.
Collision coverage: Covers all costs involved to tow and repair or replace the vehicle in the event of a collision. It will often include the cost of a rental car suited for your work while you wait for repairs or a replacement.
Uninsured motorist: If the vehicle collides with an uninsured motorist––meaning the other driver wouldn’t be able to cover the costs––your insurance policy would pay the damages up to policy limits. This coverage might also payout for the charges owed by an underinsured motorist if their own vehicle insurance coverage limit doesn’t cover the expenses caused by the collision.
Comprehensive coverage: Covers the costs involved in repairing or replacing your vehicle if it incurs damage due to theft, vandalism, flood, fire, or any damage caused if your car is hit by an object or another vehicle.
Do I Need to Have Commercial Auto Insurance?
The short answer? It depends. Your need for commercial auto insurance depends on your industry/occupation. Here are a few examples of professions or scenarios that require commercial auto coverage:
Transport goods or people in your vehicle for a fee: Suppose you drive for Uber, Lyft, GrubHub, Amazon, or a similar company; you’re going to need coverage. Essentially any time you’re using your vehicle for work purposes, it needs to be covered by commercial auto insurance.
Provide a service with your vehicle: Bus? Tow truck? Snowplow? Ice cream truck? If you use your vehicle to provide a service, you need commercial auto insurance.
Need more liability coverage because of the nature of your work: If you transport the elderly on field trips or something similar, you’ll want to make sure you have enough professional liability coverage in case something goes awry. If your work puts you or your passengers or cargo at a higher risk of injury or damage for any reason, you need commercial auto insurance coverage.
Operate a fleet: Whether your fleet is two delivery vans or 100 box trucks, the more vehicles you have, the more auto insurance coverage you need.
Haul weight in tools or equipment: If you’re using your vehicle to transport heavy loads––tools, equipment, cargo, etc.––your car has a higher risk of damage and will require commercial auto insurance.
Are not the sole owner of the vehicle: If vehicle ownership is in the name of the business entity, a co-ownership share agreement is in place, or if the vehicle has multiple drivers for work purposes, commercial auto insurance covers all drivers without individual policies. If your group of drivers is regularly changing, you need commercial auto insurance.
Some people make the mistake of thinking that commercial umbrella insurance covers vehicles, but it doesn’t always. Contact us today to make sure you have the auto coverage you need for your business.
Commercial vs. Personal Auto Insurance Examples
Commercial and personal auto insurance are two different types of insurance that cover different events. Commercial auto insurance is only available for vehicles used for work purposes. Personal auto insurance is for when you’re driving your car for personal reasons.
Most personal auto insurance policies have exclusions, which means they may not cover your vehicle for business use or only offer minimal coverage for business use. Likewise, your commercial auto insurance wouldn’t cover loss or damage caused when using a business vehicle for personal use. That’s why you need both. Here are some examples of the two being used in the same scenarios:
How Much Does Commercial Insurance Cost?
Commercial auto insurance costs a little more than personal insurance because it offers a broader coverage and higher liability limits. The cost of commercial auto insurance rates is affected by a few factors, including:
Type of vehicle
Number of vehicles on the policy
What purpose the vehicles are used for
Who will be driving (driving records matter)
Your specific business needs
Each business is unique, so it makes sense for commercial auto insurance policies to be tailored to best suit each company.
Business Insurance with Contractors Liability
Contractors have unique insurance needs. They typically carry contractors’ liability insurance to protect the job site, materials, and people who could be injured on the job site. However, liability insurance does not cover vehicles, so business owners in some industries must carry commercial auto insurance and contractors’ liability insurance.
Commercial auto insurance covers all events while the vehicle is being used for business purposes. It doesn’t matter if your business involves plumbing, roofing, or even driving an Uber; you need commercial auto insurance any time you use your vehicle for work.
Let us take the hassle out of searching for the best insurance quote. Tell us about your business, and we’ll help you find a policy tailored to match your needs at the best price!
8 Tips to Make Your Neighborhood Safer
Long gone are the days when all the neighborhood kids played kick-the-can in the middle of the street each summer night. Whether you blame it on paranoid parents or uninterested children, one thing is certain: many neighborhoods today lack the close-knit feeling that was prominent just 10 or 20 years ago. Missing this feeling creates concerns for neighborhood safety overall.
But it's not just about feeling safe—it can also save you money and hassle. The average cost of a burglary is nearly $3,000. And burglars are likely to strike again in areas they hit once, so you have a lot to gain (and potential money to save) from creating solidarity with your neighbors.
Neighborhood safety is a team effort, but it starts with you. What can you do to make your neighborhood a safer place? We have some simple tips here.
8 simple ways to make your neighborhood safer
Make friends with neighbors
Organize neighborhood safety efforts
Keep up your yard
Exercise caution when out of town
Close windows and blinds at night
Improve lighting on your street
Install a security system
If you see something, say something
1. Make friends with neighbors
Familiarizing yourself with neighbors can be a win-win situation. Offer yourself as a resource in case of emergencies or help needed on their end; some neighbors might reciprocate the offer. See if they’re comfortable sharing their needs.
Are there small children you should look out for? Do you live next to an older couple that stays home but sometimes needs help? Does your neighbor have indoor pets, and should you call if you ever see the pets outside?
Planning get-togethers based on physical activity is a great way to get to know neighbors. Arrange to go on walks or to have your children play together outside. Ensure all kids are a safe distance away from traffic, and teach them safety rules for playing outside together.
2. Organize neighborhood safety efforts
Consider giving a Neighborhood Watch group a go in your neck of the woods. If you don’t know where to start with a neighborhood association, check online for your area.
Developing a neighborhood calling tree could help when things go amiss in the neighborhood, whether it’s a property crime or something more sinister like a violent crime.
You could also encourage neighbors to disclose safety/burglary incidents on a neighborhood safety app so others know what to look out for. These apps can flag specific crime occurrences so you’re not just relying on perceived neighborhood safety assumptions.
Be cautious about the neighborhood safety app you choose since Ring’s Neighbors app has been entangled with law enforcement in ways that raise privacy concerns. Think critically about what neighborhood incidents should involve police versus when you can turn to other public safety resources.
3. Keep up your yard
A well-kept yard can help deter crime since trimmed foliage offers fewer places to hide. And fences can, of course, keep unwanted visitors out.
4. Exercise caution when out of town
To choose targets, burglars rely most on easily scannable visual cues. Details like building type and signs of vacancy fall under this umbrella. We can’t overstate the importance of making it look like you’re home when you are away.
Consider swapping offers with neighbors to keep an eye on each other’s homes when out of town. Even small efforts can deter crime.
Favors might include mowing your lawn, shoveling your walks, or picking up your mail and newspapers. You could even have a neighbor park a car in your driveway occasionally while you’re gone. Make sure to return the favor if payment isn’t involved.
Use timers or smart switches to turn on your lights, or find a smart security system that will allow you to turn lamps off and on remotely.
5. Close windows and blinds at night
A big-screen TV is a less enticing steal if no one knows it’s there. Leaving your blinds open and lights on at night provides a free look into your house, its layout, and the habits of its occupants. And leaving windows open at night or when you’re gone is an invitation for an uninvited guest to come on in.
6. Improve lighting on your street
Burglars often prefer to target neighborhoods with lower residential density. So if your neighborhood has few houses and lots of space, take special care to ensure that space is well-lit. Streetlamps are not the only way to do this.
Ask that each household turn on its porch lights in the evenings and install motion-detector lights in the backs or sides of the house so potential intruders don’t have the darkness to hide in.
Burglars also prefer homes with multiple entry points or detached properties, so ensure that all doorways and pathways are well-lit.
7. Install a security system
Overall, one of the surest options for crime prevention in your neighborhood is to get a home security system and use it properly.
8. If you see something, say something
It’s not just for airports—being diligent in your neighborhood and speaking up when you see something out of place helps everyone on the block. Criminal justice expert and SafeWise advisor Dr. Ben Stickle says neighbors working together can make a big difference, especially with crimes like package theft. He also recommends filing a police report, even though the odds of recovering goods swiped off the porch are low.
“If you report it, and three of your neighbors do (out of 25 victims, for example), and they catch the person . . . they can then charge the person with three crimes instead of one. There are advantages to doing that instead of making the police go looking for victims.”
—Dr. Ben Stickle, criminal justice and theft expert
If package theft is a concern in your neck of the woods, work with neighbors to keep an eye out for deliveries and suspicious snoopers or cars. If one neighbor is home most days, see if they’re willing to collect packages that would be left unattended on other porches for hours.
And if you catch a package thief on your video doorbell, share the footage with neighbors—yours may not be the only home targeted.
Improving neighborhood safety is a team effort, but it needs to start with someone. As you get to know your neighbors, discuss your concerns, and apply some of the ideas above, you’ll find that your neighborhood becomes not only a safer place to be but a more enjoyable one.