Business Automobile Insurance Coverage:
The question often arises: When do I need commercial automobile coverage to protect my employees, my business and myself from the ill-effects of auto accidents? Commercial Automobile coverage is needed by the business if you and your employees will use titled vehicles for your work. If the vehicles are titled in the business or corporations name you need a commercial auto policy. Many small business owners believe their personal auto policy covers them for “business use” and if the vehicle is registered in their name they are covered for “business Use”. “This is not true” and this practice could lead to claims being denied by the personal auto carrier. Most personal auto policies exclude from coverage the use of a vehicle for commercial purposes. Now if the vehicle is being used primarily for commercial purposes the exclusion in the personal policy applies. It is not smart to try to split hairs with a personal auto insurance company when a terrible auto accident has happened over the amount of commercial use verses personal use. The insured could lose everything and the broker could have a significant E&O suit on his/her hands. Some ill-informed advisors or brokers will advise small business owners that a commercial policy is an unneeded expense they can do without. If the vehicle is titled in the business or corporation’s name you need a commercial policy. Or if the vehicle used is helping you conduct business then you should have a commercial policy.
A professional agent or broker must advise the insured the coverages that the business needs for auto protection and if the insured does not want these coverages either walk away or have them sign off acknowledging they choose not to take necessary and recommended coverages.
The commercial auto policy provides liability coverage to cover your negligence to a third party for bodily injury and property damage. The policy will also provide coverage for damage done to the firm’s vehicle.
Businesses should add coverage for hired and non-owned to protect them when employees use their vehicles on the company behalf or when they use a vehicle that does not belong to them. There are other coverages that might be needed by your insured to protect their operations from auto accidents. Be sure to truly understand your insured’s exposures to loss.
The auto policy for commercial use provides coverage through the use of nine (9) different symbols and these symbols state the coverage the insured has. The most comprehensive coverage is afforded under symbol # 1 “any vehicle”. Symbol 7 only those vehicles listed are covered is the most restrictive.
We start where online auto insurance companies like Geico and Progressive leave off. We leverage the Internet to make sure your company’s getting the most efficient coverage package possible — usually at about 15 percent below what you’re paying now.
Helios is based in Dallas, but we’ve applied what we’ve learned about Texas auto insurance to all 50 states. And while auto insurance in Texas might not be the same as Vermont or Michigan, the principles we follow still apply.
Because we’ve found that the kinds of auto insurance Texas- Company’s need comes into play everywhere. Get to know the auto exposures faced by your insured’s and take nothing for granted in finding out about the operation. You are being counted onto recommend the best coverages while looking out for the insured’s bottom-line.