Getting commercial vehicle insurance is non-negotiable for any business that’s operating one or more vehicles for business purposes.
It protects the business from losses in case of physical damage and liability to these vehicles. Experts suggest that businesses should have at least $500,000 in liability coverage per vehicle.
However, there are some common misconceptions that surround commercial vehicle insurance; these can n result in companies overpaying for insurance or being underinsured.
Let’s bust some of these myths:
Myth # 1: My Personal Auto Policy Protects My Personal Vehicle While I Make Deliveries for My Company
Your personal auto insurance policy only protects you while you are commuting to and from work, driving for leisure, or for other personal reasons. If you are using the vehicle for business purposes and were involved in an accident, your insurance company will likely deny any claim for damages.
Myth # 2: I Own a Seasonal Business So There Is No Need to Maintain My Commercial Auto Policy Throughout the Year
If you cancel your commercial vehicle insurance policy during downtime, you will have no coverage if the vehicle is damaged during storage. You will also end up paying a higher rate when you take up the policy again later.
By not canceling the policy, you will ensure coverage for your commercial vehicle throughout the year and also keep your insurance premiums low.
Myth # 3: All Employees Are Insured Under My Commercial Vehicles Insurance Policy
That’s not always the case. Usually, only those employees are covered whose names are on the policy. Some policies include a “permissive use” clause, which provides coverage for any driver that has written permission from you to drive a vehicle. It’s always good to check with your insurance agent to be sure.
Myth # 4: I Don’t Need Commercial Vehicle Insurance Because I Work From Home
The location of your business doesn’t matter as much as the reasons for which you use the car. If it is used more for business-related purposes, your personal insurance policy might refuse to cover any damages and liability unless exclusive business-use coverage has been added upon request.
Myth # 5: Any Equipment and Tools in My Commercial Vehicle Are Covered In the Policy
Any equipment that is permanently attached to the vehicle becomes a part of the vehicle and is covered under the commercial vehicle insurance policy. However, loose tools, removable equipment, and additional supplies are usually not covered unless specific coverage has been added to the policy for items in transit.
Want to learn more about cheap commercial auto insurance MA? At Western Mass Auto Insurance, we have access to leading insurance providers. We provide comprehensive information to educate our clients regarding different types of commercial vehicle insurance policies and rates in Springfield, MA.