Regardless of the scale of your business operations, if you use automobiles, you need to carry commercial auto insurance. A commercial auto policy will protect your business’s financial well-being by covering liabilities resulting from traffic-related mishaps. Without the right commercial auto coverage, an auto accident can make you responsible for liabilities that can upend your business. However, asset protection is not the only benefit of commercial auto insurance.
Here are additional benefits that you’ll get from your auto coverage.
When you apply for a loan, lenders consider a wide range of factors. Aside from your income and credit score, lenders consider other factors that may affect your enterprise's ability to repay. One of these factors is your level of insurance coverage. If you're seeking funds to purchase a commercial vehicle, your lender will likely require you to carry a given level of auto insurance coverage. Getting a business auto policy with extensive coverage limits may incentivize your lender to give you extra consideration.
The terms of commercial auto insurance policies vary. However, these policies generally cover any equipment that your automobiles carry. If your inventory is destroyed due to an accident, your auto policy can reimburse you. Commercial auto policies also cover perils like vandalism and theft, which is especially useful if you run a delivery-based business that works in high-risk areas.
Businesses that lease vehicles often have to deal with significant extra expenses. Maintenance and cleaning costs often accumulate up to significant amounts once the lease period ends. By ensuring your drivers are well trained, you can effectively reduce the scratches and scraps that increase your lease payments. Having skilled drivers, however, can only take you so far. However, you can also customize your auto insurance to include extra protections for leased automobiles. By increasing the level of coverage, you will protect the leasing companies’ interests in case you’re in an accident. And, by saving them some risks, it can be easier for you to negotiate a better lease term.
Businesses can be competitive, and thus businesses need to use every advantage to stand out from their competitors. One of the key factors that potential customers consider before working with you is your customer service. In addition to providing them a service or product that they need, consumers also want to know whether you’re a reliable partner who considers their well-being. Having sufficient insurance coverage is a simple way of signaling to customers that you're reliable. With adequate auto insurance coverage, your customers will know that their property will be protected from accidents and blunders.
Now that we’ve considered how your business will benefit from the right auto insurance, you should note that the cost of adequate coverage doesn’t have to be prohibitive. While it isn't prudent to skimp on commercial insurance, your insurance agent can help you take some cost-saving measures.
At Reata Insurance Group, we will help you find a customized and cost-effective commercial auto insurance policy that adequately protects your business. To get started, contact us today.
