When you run a business, there’s a lot you need to handle. It is easy to have your hands full with the core operations and forget about loose ends like securing the company vehicles. Cab companies and fleet businesses have insurance on top of their operational checklist for obvious reasons. But what if you run a small business where employees use company vehicles to make sales calls, deliver orders, or run regular errands? Will your personal insurance policy cover the vehicle when used for business? You need some help to answer these questions because commercial insurance for corporate vehicles is a must-have for Ontario-based business owners. Let us explain when you must have it and why it matters.
Employees operate the car
A personal policy for your car will offer adequate protection if you are a sole owner operating a home-based business. You will probably not need to commute for work or make customer deliveries as a part of operations. Conversely, you will require commercial coverage when your car is owned by the company and operated by the employees for day-to-day tasks. A commercial policy lets you list the full-time employees using business vehicles, so you can claim insurance if something goes amiss when one of them is behind the wheel.
Usage is for business purpose
This one is a no-brainer because you will need commercial coverage if you use the vehicle mainly for business purposes such as transport and fleet services. Delivering goods to customers and driving for work errands is the most common instance. But you will need insurance all the more if you use the vehicle to transport expensive equipment or tools because accidents can cause extensive damage. You cannot expect your personal policy to cover the repair or replacement costs. It is best to contact isure Ontario insurance broker to understand how commercial insurance can serve value in such situations. Further, using a vehicle for driver training is another valid reason to get coverage.
Commercial insurance keeps you stress-free
Whether you run a couple of cars for the daily tasks of your business or operate a huge fleet of vehicles, commercial insurance brings peace of mind. You can be stress-free about having them on the road because there is adequate coverage in case of an unfortunate event. Here is a list of the coverage components typically included in insurance for business vehicles:
· Cost of injury to driver and passengers, which includes medical expenses and lost wages
· Replacement car coverage when the business vehicle is damaged and out of operation during the repair phase
· Loading and unloading liability for vehicles carrying products and equipment to customers or events
· Additional coverage when you operate vehicles in other Canadian states or provinces besides Ontario is available if you buy it for extra security
Commercial insurance is definitely the best way to cover the vehicles you or your employees operate for work. It is a worthy expense as it covers both your employees and assets, so you must invest in it without second thoughts.