Commercial auto insurance is a necessary investment for many companies. It is necessary when a business operates a vehicle as part of its operating activities.
Many vehicle types fit into this category. These include trucks and vans, luxury transport vehicles and even small cars that get employees from one job site to the next.
Both owned and leased vehicles need commercial auto insurance. It can help safeguard your investment in vehicles against accidents or other risks.
What Insurance Is A Requirement For A Leased Vehicle?
Like a vehicle under a loan, leased vehicles need ample financial protection. The company you lease it from will likely have insurance stipulations. These usually include comprehensive coverage. You will need to protect the value of the vehicle with ample coverage. You will also need to have coverage for collisions, uninsured drivers, and underinsured drivers. Furthermore, your state likely requires you to carry liability insurance. So, you will likely have to meet this requirement when buying or leasing a car.
A complete auto insurance package is generally necessary here. Your business insurance agent can help you to make that possible.
Do You Need Commercial Auto Insurance?
It can seem more affordable to choose a personal insurance plan for a vehicle. However, if an accident occurs during business hours, your policy may not offer coverage. Here are a few times when you need to invest in commercial auto insurance for your leased vehicle.
- You use the vehicle for any type of business activity.
- The vehicle has a lease through your company.
- Employees drive the vehicle for work-related needs.
- Your employee uses his or her personal car for work-related activities. This vehicle may need commercial auto insurance even if you do not own it.
- You use the vehicle (or your employees do) for both personal and business needs.
Generally, it is not an option to choose a personal policy for a company-leased vehicle. Some state laws require a business-specific policy. You will also need to consider the amount of coverage necessary. A leased vehicle will likely have a high coverage expectation from the company you lease it from. In those ways, commercial insurance might offer better benefits.
Obtain the proper type and amount of commercial auto insurance for your vehicle. Leased or owned, you need to keep this asset safe. This should be a key component of your business insurance policy. You will find the right policy offers the financial protections you need. You do not want to worry about an accident leading to a costly lawsuit against your company. For more information, contact your Fulton Agency representative.