Five reasons your business should consider commercial car insurance

If your business has a vehicle used for work, or a fleet of vehicles, then it might make sense to consider commercial car insurance. If you’ve been using personal or regular car insurance for work vehicles up until now, it’s worth reviewing your insurance to make sure you’re covered for the way you use your vehicles.

If your business has a vehicle used for work, or a fleet of vehicles, then it might make sense to consider commercial car insurance. If you’ve been using personal or regular car insurance for work vehicles up until now, it’s worth reviewing your insurance to make sure you’re covered for the way you use your vehicles.

Commercial vehicle insurance covers a more complex range of scenarios than personal vehicle insurance, and it can also cover higher claim amounts and different types of vehicles more effectively. However, if you’re running a small business and use your work vehicle for personal travel as well as for work, then you might be confused about what cover is best for you.

Here are five reasons your business should consider commercial car insurance:

  1. All the drivers of the vehicle will be insured

Personal vehicle insurance usually only covers named drivers. Commercial car insurance covers everyone with a valid licence driving the vehicle for business reasons. This means you can let your junior staff members run errands or drive the work ute without fear that your insurance won’t be valid. In some cases, even if you’re the insured driver, your personal vehicle insurance won’t be valid if you have an accident while using your vehicle for work. So, if you use your vehicle for work, even if it’s not all the time, you may be better off with commercial car insurance.

  1. Coverage can be more comprehensive and relevant

If you’re using your vehicle to transport goods for your business and have an accident, your personal car insurance may not cover the cost of the lost goods. Comprehensive commercial vehicle insurance, however, tends to cover the goods in transit as well as load recovery. Additional items covered under a commercial policy include signage on the vehicle and the cost of renting a replacement vehicle to keep your business up and running. If your employees need to use their personal vehicles in the interim, your insurance company may be willing to cover those vehicles, too.

  1. Commercial car insurance includes legal liability cover

As well as the standard legal liability involved in an accident, commercial vehicle insurance covers you if you accidentally injure someone and you’re ordered to pay reparations for their lost income or medical costs. Your commercial car insurance will cover some or all of those costs, as well as the costs involved if you accidentally damage someone’s property.

  1. Commercial car insurance eliminates confusion and the risk of underinsurance

Employers and employees often aren’t sure what’s required when it comes to using personal vehicles for work purposes. Many organisations require employees to use their own vehicles to transport goods for work or attend meetings and appointments. When employees use their own vehicles for work purposes, they need commercial car insurance or they could find themselves underinsured if they have an accident. This could have financial repercussions on the business as it may be found liable to pay the employee’s costs.

If you’re the business owner and you use your car for work but it’s only insured for personal use, you could be out of pocket if you have an accident. Therefore, the safest option is to have commercial insurance on all vehicles used for work purposes, regardless of who owns the vehicles.

  1. The risks are higher when using vehicles for work

Typically, vehicles used for work are on the road more, they carry heavier or more expensive loads, and they can also tend to carry more than one person. All of these factors increase the risk of an accident happening as well as the potential cost of an accident. If your employees (or you) are carrying work tools that get damaged in an accident, you need to know they’re covered. If you’re driving a heavier vehicle like a small truck, the damage to other vehicles and people can be more significant, which can open you up to costly claims. And, if you have a number of employees in one vehicle and they’re all injured in an accident, you may be liable for their medical costs and your business could suffer as a result of having so many people off work.

The bottom line is this: if you use a vehicle for work purposes, even if it’s only sometimes and even if it’s only for short distances, then you need to cover it with commercial car insurance.

Talk to your insurance broker today to find out which commercial vehicle insurance policy is right for your business. An experienced broker can help you minimise risk and will be by your side if you have to make a claim. Click here to find your nearest independent broker to find out more.