4 Auto Liability Insurance Mistakes Business Owners Should Avoid
Posted on: February 19, 2018 by Signature Insurance Group
If your business has employees who do any type of driving on behalf of the business, from making deliveries to running errands or transporting other employees or clients to other destinations, commercial auto liability insurance is a must-have. Many business owners may unknowingly make some costly mistakes when purchasing auto liability insurance, and for smaller businesses operating on a limited budget, one auto liability lawsuit could be enough to put them out of business for good. Here are four common auto liability insurance mistakes that business owners should avoid.
Mistake #1: Not Buying a Commercial Auto Liability Policy
Too many business owners incorrectly assume that their personal auto liability coverage, or their employees’ personal auto liability coverage is enough to cover any accidents that may happen in a commercial auto liability case. Not only will most personal automobile insurance agencies not insure commercial vehicles, but most personal policies contain specific business-related exclusions. Relying on a personal auto policy for coverage can leave business owners vulnerable to very costly litigation if an accident does happen.
Mistake #2: Not Buying Enough Auto Liability Insurance
Depending on how serious an automobile accident is, damages from a lawsuit could run into the $1 million range. If a business’s auto liability policy only covers up to the minimum legal liability amount, the business might be left to deal with the rest of the damages. Business owners should look for insurance companies that can provide affordable and comprehensive auto liability coverage that can be customized to meet their needs and cover them in a worst-case-scenario accident.
Mistake #3: Not Insuring Hired or Non-owned Autos
Hired autos are vehicles that a business rents, leases, hires or borrows on a short term basis, usually under 6 months. Non-owned vehicles are vehicles that are not owned or hired, such as an employee’s vehicle, but are used for occasional business-related purposes. Liability coverage for hired and non-owned autos may or may not be automatically included in a commercial auto policy, so it is important to be certain whether your policy includes this type of coverage.
Mistake #4: Not Properly Insuring Mobile Equipment
Insuring mobile equipment such as bulldozers or forklifts can be slightly more complicated for business owners, mainly because these vehicles may be covered under a general liability policy in some instances, but need auto liability coverage for other situations. Typically, when mobile equipment is being used at the job site, it will be covered under the general liability policy. However, if the equipment needs to be moved to another site and an accident occurs on the way, that accident would not be covered under the general liability policy. An auto liability policy is a necessary protection for mobile equipment traveling on public roads.
About Signature Insurance Group
Signature Insurance Group has been working since 1969 to provide comprehensive insurance solutions to individuals and businesses across the United States. We offer a range of insurance products and services in risk management, employee benefits, business insurance, and personal insurance, and we pride ourselves on our commitment to creating “Signature Relationships” with our clients where we commit to providing the best, most comprehensive service possible. To learn more about our goods and services, contact us today at (800) 464-3606.