If you own a company that uses cars or trucks for its services, you may need to have a vehicle insurance policy.

A business vehicle insurance policy covers physical damage and liability in the event that things go wrong. This insurance policy is a formal regulation in most countries, designed to help you protect your business and your vehicle(s).

Bear in mind that emerging and smaller businesses also benefit from these policies. Self-employed people can profit from this insurance as it provides coverage in the event of accidents on business days.

Note that you might not be eligible for insurance if your vehicle is serviced at unlicensed mechanics. Licensed mechanics like Collect Service Go ensure that any fault you encounter on your vehicle can be covered by insurance.

You may now be wondering whether your business needs vehicle insurance coverage. To confirm if you need vehicle insurance for your business, answer these questions:

Who owns and drives the vehicle?

If your vehicle is owned by a business, and someone other than you (an employee) is driving the company vehicle for business services, it would be best to consult an insurance policy professional.

Are your employees driving their personal cars for company purposes?

For instance, your employee may one day be driving their car for a package delivery to one of your clients, and gets involved in an accident. If this happens, your business will likely be accountable for bodily injuries and damage to property.

If you want to avoid this situation, we would advise you to look into a reliable vehicle insurance policy.

What is your business vehicle type?

The type and weight of your business vehicle matters. If the vehicle you drive is heavier than a normal-sized vehicle, say if it’s a trailer or a truck, you might require a business vehicle insurance policy.

Additionally, if you have more than one vehicle registered to your business you probably need to look into having a vehicle insurance policy in place.

Do you perform loading and unloading?

You may perform deliveries of various items with your business vehicle to customers or firm partners. These could be products, boxes, tools, or machinery, to name a few.

While you are taking out that delivery, you are covered by your vehicle liability insurance policy the entire time until the delivery packages reach the final destination. As accidents can easily occur during this period, it is well worth taking out insurance if your business performs loading and unloading.

What does a business vehicle insurance policy cover?

Here are some areas of coverage that may be included in your insurance policy.

Bodily Injury Liability Coverage: If someone gets in an accident caused by your business vehicle, this coverage is used to cover your legal fees to be paid for the bodily injuries and medical bills in the event of a lawsuit.

Property Damage Liability Coverage: This covers property damage caused by your business vehicle. It’s used to reimburse the other party for repairs of damaged property.

Personal Injury Protection Coverage: This coverage helps pay for medical expenses if you get hurt in an accident.

Uninsured Motorist Coverage: This is used when your business vehicle gets hit by a car that doesn’t have an insurance policy.

Collision Coverage: This helps pay the cost of your vehicle repairs when damaged by some other vehicle or object.

Comprehensive Coverage: This coverage pays for damages caused to your car by other factors like fire, theft, or animals.

Getting your business vehicle insurance policy.

Your insurance policy agent may ask if you own or rent your business vehicle, who drives the vehicle, and how you use your vehicle for your business. Your answers to these questions will determine the kind of coverage you need.

In Conclusion

It is important to bear in mind that not all business vehicle insurance policies are the same.

Vehicle insurance coverage has a limit, and this limit is the maximum amount your insurer is willing to pay for a covered claim.

Spend your time discussing your specific needs with a potential insurance policy professional. This will ensure the coverage you get is the correct choice in the event of an accident.