What Small Business Owners Need to Know About Commercial Auto Insurance

Does your business need a commercial auto insurance policy? This is a question that many small business owners run into when they're setting up their business, and because of the myths that have been propagated regarding the insurance industry it's one that many business owners are answering incorrectly-and the minute an accident takes place on company time they're paying the consequences. The short story is, whether they're a mom and pop grocery store running errands or a major transport company with thousands of trucks on the road each day, every business needs the protection of a commercial auto insurance policy.

Many business owners, particularly those that own small businesses with a limited number of employees, believe that if their employees are driving their own vehicles for company business and aren't spending all day on the road the way salespeople and pharmaceutical reps do that they don't need to supply them with a commercial auto insurance policy. Their personal insurance policy protects their vehicle, and it will pick up the damages if they're involved in an accident during business hours.
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The catch is, auto insurance companies don't like to pay claims. They make their money by collecting premiums each month, not by sending it out to hospitals and auto garages. When you consider the average cost of car repairs after an accident (if you can get off with a number less than four digits you're going to be lucky) and the fact that the average hospital stay is five days and generally runs up a cost of over $23,000, you can understand why insurance companies hesitate to pay for claims they don't have to.
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When you're on the road doing company business you're more likely to be involved in an accident that you would be if you were just commuting (theoretically-the person who came up with this theory obviously has never seen I-95 in the middle of rush hour!) and therefore are more likely to have to file a claim. That's why they ask drivers to distinguish between whether their vehicle will be used for business or pleasure when they buy a policy, and it's also why they may drag their feet about paying a claim after an accident if it happened during business hours.
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Because the last thing you or your employees want to do is spend months arguing with your insurance provider over what, exactly, your car is used for and whether or not they should be held responsible for your claims, the easiest thing to do is simply purchase a commercial auto insurance policy for your business. Commercial insurance coverage is slightly different from a personal insurance policy in that it allows you a little more flexibility on your vehicles and who, exactly, is behind the wheel. The policy will cover employee vehicles during business hours as well as company owned vehicles with various employees behind the wheel, ensuring that you're never left holding the tab if an accident takes place.

The damages resulting from an accident can be devastating to company profits. Don't you have something better to do with your profits than spend thousands of dollars on accident damages because you chose not to purchase a commercial auto insurance policy for your business?

Clifford F. Berman is the CEO of QuoteScout.com. Since its launch in 1996 the company has specialized in matching consumers requests for insurance quotes with multiple insurance quotes from both local agents and national insurance carriers

For more information about commercial auto insurance and your small business, visit them on the web at http://www.QuoteScout.com