As a business continues to grow, commercial insurance needs to grow alongside it. Owners that fail to reevaluate their insurance needs throughout the years may not realize that they are putting their companys assets and their employees at serious risk. This includes companies that have begun to expand their commercial auto fleet or are increasing their mileage due to work-related activities
Many business owners are unsure of when a commercial auto policy will be necessary and when it can be avoided. The general rule that all owners should keep in mind is that commercial auto coverage will be required any time that any vehicle is used in a task that is relating to ones occupation. This can often seem vague, but those that fail to have an active commercial policy when it is needed could have all expenses leveled directly back at the company including court-ordered fees for failing to have the correct coverage.
If a vehicle is ever used to transport people or cargo for a fee, that vehicle and its driver must be covered by a commercial policy. Even drivers that have exceptional personal coverage will still be operating a commercial vehicle illegally without the proper policy in place. Just as important, any time that a vehicle is used to tow or haul anything that contains company property such as tools or equipment, a commercial policy must cover the vehicle, the driver, passengers, the equipment, and any trailers that are used.
While these few situations may seem straightforward, some business owners fail to acquire a policy when their employees use private vehicles over the course of their duty. A commercial auto policy is not necessary for going to and from work, but it will be legally required if employees use their own private vehicle to pick up office supplies, meet with a client, transport company-owned goods, or conduct any sort of service. In these situations, all accidents and injuries will be covered by the higher limits of commercial auto insurance in order to protect the company and its assets.