Commercial Car Insurance
Commercial car insurance is a business financial tool that protects business vehicles just a personal auto insurance protects personal cars. Commercial auto policies generally cost more and have additional elements than, for instance, a short-term auto policy will, for commercial vehicles usually have greater risks than a personal auto does. Commercial auto insurance also complies with additional restrictions and statutory requirements than a standard auto policy must. Fortunately, price ranges for competent coverage do exist, and businesses can save money by comparing policies and prices.
General Commercial Coverage
There are several forms of commercial auto coverage, usually tailored to type of vehicle or type of use. Even if a privately owned auto mobile is used for a business purpose on a one-off or a regular basis, that car, during its business-use time, must be covered by even a basic commercial insurance policy whose premium is paid by the company, not the vehicle owner. If the employee travels on behalf of the business regularly, such as a consultant or a route driver, the vehicle must be under commercial insurance.
Commercial insurance is usually for comprehensive cover, for the auto mobile represents the company as much as its driver does. If it is involved in an incident or an auto accident, it must be repaired as well as the damaged object or vehicle. If it causes bodily injury, the financial stakes are usually above those for a personal vehicle, for it is a business that is liable, and the general public usually sees a business as having more assets. Not only are appearances for public perception of reputation at high standards, so generally are the driving records of authorised drivers of those vehicles. Just as in private insurance, risks elevate with fuller accident histories.
One benefit of most commercial insurance policies is the legal representation for action regarding use of that covered vehicle. Most of the time, that representation is used to defend a business against allegations in lawsuits, and defence teams are not cheap. A comprehensive commercial car insurance policy may not have that feature included in the basic coverage, but every commercial car cover usually has it available as an option, which should be considered seriously when purchasing the insurance policy.
Taxi cabs are a type of commercial vehicle that needs this specialised coverage. Because of a taxi cab’s involvement and interaction with the public, its risks are greater than many larger vehicle’s simply because of frequency of contact and liability of driver actions. Taxis travel in all kinds of traffic situations and in all areas of a city, day or night. Because of that, accident risk rises tremendously. The wear and tear on brakes and lights, for example, increase risk of collisions. Because of the complexity and variety of risks involved in driving a taxi, taxi cab insurance can be difficult to find, and it’s never as cheap as personal vehicle insurance is for the average motorist.
Businesses who hire more than family members and whose employees have interaction with the public must also have employee liability cover. For instance, there must be commercial car insurance on the vehicle, plus employee liability on the employee driver. Employee liability cover extends to the employee. If that taxi driver got hurt by the vehicle while performing his job, for example, the company is liable for costs pertaining to the injury. If the employee slips and falls while moving around the taxi, this is not an employee liability from vehicle cover.
However, liability does extend to the public for that taxi and its driver. If the driver assists a member of the public from a building to the waiting cab, and the assisted individual slips and falls, that becomes an employee liability issue, for the employee made physical contact with the customer, which is why many cab drivers handle baggage only and do not assist people. The liability potential increases with each assistance.
Proper assessment of commercial car insurance needs is imperative to safeguard a company’s assets, its employees and the general public. Cost management would advise comparing multiple quotes from commercial car insurance providers to ensure you get the best value in coverage options for the least amount of money.