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This Is What You Need to Know About Commercial Insurance

Having personal insurance, especially when it comes to your vehicle, is important because it helps keep you and your family safe. It is also required by law in many states.

However, the details of commercial insurance can get a bit tricky because there are a variety of policies that might not be covered under a commercial auto insurance policy.

Some vehicle types might not be covered under a standard insurance policy, and having the wrong insurance can be a big issue when it comes to maintaining compliance with the law, or if you get in some sort of accident. It is always important to take the proper insurance precautions for your vehicles in the same manner that you take for your home or other property.

One of the biggest things to look at when it comes to commercial insurance for your car is to see who is on the registration. If a vehicle is registered through a business, commercial car insurance is needed. But if it is registered in your name, you might not always need to get insurance, especially if you own a business by yourself. You will need commercial insurance if the car is mainly being used for business purposes.

Commercial car insurance policies must be taken out if other employees at your business are driving a company car. These types of policies let you add multiple people to them so the risk of the vehicle can be properly accounted for by an insurance company. Commercial insurance is also needed for vehicles that are getting regular use. Usually, more than three times in a month-long period is a good benchmark for cars that should be covered under a commercial insurance policy.

However, there can be a few nuances when it comes to business use. Just driving to and from work is considered commuting and does not fall under needing a commercial policy. This action can be covered under a normal car insurance policy. But if the car is used to ferry other people to a job site, you should think about commercial insurance. Cars that are used to carry equipment, for towing, for newspaper delivery, or other delivery purposes should most likely be covered under a commercial policy.

Some forms of business, like a Mary Kay or Tupperware business, can be covered through a personal car insurance policy. You should let our agent know if you have a business like this so they can specifically tailor the policy for your benefit.

Click here to learn the 7 common insurance myths!

Keep in mind that the above concepts are just for you to get a better idea about what to expect when it comes to a commercial car insurance policy. You should understand that situations can be very different from person to person, an activity that might seem similar on the surface could be very different in the eyes of an insurance agent.

Our experienced agents will be able to speak with you about additional policy add-ons that might be required based on the type of car or business you carry out. If you need liability coverage for equipment that is transported, this can be added on to your commercial insurance.

Do you have a question about commercial insurance? Click here to contact Davco Insurance today!

Courtesy of  Cuselleration

What is Commercial Insurance?

Commercial insurance is meant to protect your company’s financial assets, physical and intellectual properties, as well as any covered losses. These losses may occur as a result of property damage, vandalism, theft, lawsuits, loss of income, illnesses, and/or employee injuries.

In most cases, you will find that standard commercial coverage include commercial property, commercial Liability, commercial auto, worker’s compensation, etc. There are many more commercial insurance coverage types that most businesses use to protect themselves from other unique risks that businesses end up facing time and time again.

Types of commercial insurance policies

As a businessman or businesswoman, you will notice that there are a variety of business insurance coverage options that you can use. The type of commercial insurance coverage that you choose depends more on the industry that you are in, location, size, an even the number of employees.

You will also need to note the fact that all commercial business insurance needs change over time. This is true with all businesses that grow. At the minimum, you will always find that most businesses only have property, liability, and worker’s compensation coverage.

1. Property policies

Any business that doesn’t have a proper property coverage may find it difficult in recovering from any significant property damages. That is why it is vital for all businesses with a lot of properties have proper property coverage. So, in the event that there is any property damage within the boundaries of the property policy, the insurance company should pay for the repairs and/or replacement of any damaged property. Property damage can occur as a result of a storm, fire, or any other covered event.

2. Liability insurance

This policy is meant to protect you from any kind of cost-related claims that are filed against your business for bodily injury or property damage. Lawsuits that are filed against businesses without liability coverage can sometimes end up leaving huge financial dents in businesses. These types of lawsuits usually demand large legal fees – even if your business is

innocent. So, if you don’t have the proper liability coverage, you may end up paying for everything. This may include the legal fees, settlement and/or judgment out of your own pocket.

3. Employee insurance policies

The workers’ compensation policy helps to provide employee benefits for any work-related illnesses or injuries. This coverage will also help your business by covering for any legal costs that your business may face in that regard.

Risk management

These are the loss control services that are offered for most businesses. They will help to reduce the overall risk exposures in your business and also improve the safety of the operations in the business.

Do you have a question about commercial insurance? Click here to contact Davco Insurance today!