WHAT AUTO INSURANCE SHOULD I GET FOR A BUSINESS VEHICLE?
If you are a business owner and need to insure a company vehicle for employees to drive, you’ll need to purchase commercial auto insurance from a reputable insurance agent.
Minimum Commercial Insurance Requirements
How much insurance you’re required to carry depends upon the vehicle’s capacity and what the vehicle will transport. The Indiana Department of Revenue explains the law’s minimum requirements for commercial auto insurance:
- Transporting non-hazardous materials in a vehicle with a gross vehicle weight rating (GVWR) of 10,000 pounds or less – $300,000
- Transportation of non-hazardous materials in a vehicle GVWR of more than 10,001 lbs – $750,000
- Transporting hazardous materials – $1 to 5 million
- Transporting passengers with a 15 or fewer seating capacity – $1.5 million
- Transporting passengers with a 16 or more seating capacity – $5 million
Your rates and premiums will be affected by the above categories, as well as factors such as your employees’ ages and driving records and the estimated annual mileage. Call several companies to compare before purchasing your new policy and make sure you understand exactly what your policy covers and doesn’t cover.
Commercial Coverages
Commercial policies are similar to personal auto policies but with slightly different eligibility requirements, coverages, and limits. Some of the coverage that will be available for a business vehicle policy include:
- Bodily injury liability (pays for injury and death)
- Property damage (damage to the other person’s car)
- Collision (pay for damage to the company car)
- Combined single limit policy options
- Uninsured and underinsured motorist coverage (for accidents in which the other driver cannot cover the damages)
- Medical coverage (for you and your passengers, regardless of fault)
- Comprehensive (covers theft, as well as any type of physical damage to your car, e.g., vandalism, fire)
When Commercial Insurance Might Not Be Necessary
There are several instances in which a commercial policy might not be necessary. If you are using your own personal vehicle and you don’t employ anyone else, your personal policy likely will cover you.
Also, if your employees use their company cars for business purposes, their insurance policies will cover them to a degree, but probably not completely. For instance, if they are responsible for an accident while on the job, the other driver can sue your company for damages. Your employee’s policy will not foot the bill for the extra damages.
If your employees will use their own vehicles on a regular basis for job-related tasks (running errands, making deliveries, etc.), first find out what type of personal coverage they already carry. Then speak to your agent about what additional types of coverage you need to cover all your bases.
Legal Counsel for Accidents in Indiana
Properly and sufficiently insuring your company vehicle is essential – not only because it’s lawful, but also because failing to do so puts you at risk, liability-wise. Your company can be legally responsible in a negligence claim for the actions of your employees while they perform work tasks. If they wreck on your watch, it could be on your dime, too.
For legal questions or concerns about business liability after car accidents in Indiana, contact our attorneys at Hensley Legal Group. Call today for a FREE, no-obligation legal consultation: (317) 472-3333
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