Commercial Auto Insurance Limits
What are your commercial auto insurance limits? Many companies get commercial auto insurance with $1 million in liability limits and consider their risk covered.
But what about some of the other jargon you may see on your policy—specifically first-party benefits and uninsured/underinsured limits? Should you, as the business owner, stick to the minimum or go beyond to maximize your protection?
Most often, a commercial auto insurance limits that shield your company from liability losses are low. The business, in this case, asks each individual’s personal auto insurance to provide primary coverage while the employee is driving on company time. Workers compensation insurance will take care of the employee if injured in the course of work duties.
But what if you are a small business and your family uses the company vehicle? Should you increase these limits? Maybe…or you can consider personal auto policies for all the family members who drive company vehicles.
Your insurance agent or broker can help you sort these issues out. You will need to know who will be driving the vehicles in question, the frequency of use, and what current personal auto policies are in place on the drivers at issue. Having the right commercial auto policy will reduce the chances that your company will have unexpected, serious losses due to vehicular accidents.
Do you know your commercial auto insurance limits? Ask us for a free consultation!