Commercial automobile coverage what is it and why do we need it ? Nowadays most people drive their own cars every day and likely have their own personal auto insurance coverage in exchange for a premium.
The carrier provides drivers with protection against damages to their car, injuries caused to those people in it, and liability coverage for damages or injuries caused to third parties. This is such a necessary insurance coverage for public safety that almost every state including Florida, has passed laws requiring drivers to secure a personal auto policy.
Commercial auto policies operate in a similar fashion so let's look at an example. Matthew…
You can certainly self insure and you can certainly bear all of the liability of any commercial risk you have but just know that you, your family and your business might be at the short end of the stick if you don't have the proper coverages in place.
Most personal auto policies will directly address that they have exclusions for business. What this means is your agreement will 9 times out of ten not include business protection.
Personal auto insurance is called that for a reason. It protects you or any damage you may have caused to yourself, second parties, and or second parties properties. If you are using a personal auto policy for business purposes this completely changes the game as with business there may be more risk involved. You may drive more, or carry higher payloads in your vehicle. This all means more risk and the terms of your personal policy most likely didn't agree to cover all this risk which is why having the right commercial auto policy is everything.
Having independent contractors as opposed to employees is not going to cut it in terms of exposure. If you own the vehicle you need to have coverage otherwise you're going to be exposed. If you don't own the vehicle, and have someone working for you in their personal vehicle, the third party involved in the accident and their lawyers can still come after your business
There really isn't a right amount of liability coverage. Every business is different and all risks are different based on the business type. The one important thing for anyone to fallback to is considering well what is the worst case scenario? What if the one bad day when you've got to fall back to your insurance policy, is it going to be enough to stand between you, your assets and somebody else's attorney?
Let's say there's a fatality potentially, and you need to fall back on your policy and realize that more protection wasn't all that much more expensive to bump it up to a million or something? Is it worth it to you then?
The fact of the matter is that it's really that first twenty thousand dollars of protection that is the most expensive. As you move up to a million it becomes less of a economic burden on you. Sure it's more, but with that type of coverage you have that peace of mind by having that protection before your personal assets are at stake. Call us today to discuss what the upside or downside is of having a certain amount of coverage before you're personally exposed.
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...rcial auto policies operate in a similar fashion so let's look at an example. Matthew works for a large plumbing contractor. His job is to drive a company owned service van to conduct plumbing repairs for local customers.
One day while Matthew was driving to perform a repair he ran a red light and caused a massive car accident. He was ok but the passenger in the vehicle he hit was taken to the hospital. Furthermore both cars were severely damaged during this commercial accident. Matthew was in a panic and immediately called Joanne the owner of his company, afraid that he would be personally responsible to pay for the injuries and damages.
Now, if the claim fell under his personal auto policy; his limits would not be sufficient and he'd have to sell off his personal assets in order to afford it. Fortunately for Matthew, Joanne was able to put him at ease by reassuring him that as he was in a company vehicle, the company's commercial auto policy would respond to the claim.
Joanne's commercial auto policy ended up paying all portions of the claim. The bodily injury to the injured third party, the cost to repair the third party vehicle, and the cost to repair the company vehicle that Matthew was driving.
Advantage Plus Insurance helps business owners like Joanne secure a commercial auto policy so both the company and any third parties are provided the immediate aid and support they need if ever an accident were to occur.