Commercial auto insurance is more complicated than personal auto insurance, and policies have somewhat different terms. Familiarize yourself with some of the basics to ensure coverage meets all of your practical needs and access competitive rates. Here are some key things Ohio drivers and business owners need to know about commercial policies.
Not Only Company-Owned Vehicles Need Commercial Auto Insurance Coverage
Personal auto insurance policies commonly exclude claims involving accidents while using a vehicle for commercial purposes. Even if someone in your business personally owns a vehicle, getting into an accident while you are using it for work might preclude access to your policy’s benefits. If you drive while operating your business or in the scope of your employment, you must obtain a commercial auto insurance package to ensure you will be fully covered.
A Business May Face Liability for an Employee’s Negligence on the Road
If you own a business that operates a fleet of company-owned vehicles or your employees regularly work at multiple job sites, your business will be liable for any claims arising from accidents that they have while they are working. For the most part, this does not apply to accidents that occur while people are driving to or from their place of employment. In those instances, drivers will be personally liable.
When someone has an accident with a commercial driver, pursuing a legal remedy from that driver’s employer may be preferable to claiming the driver as an individual. Commercial insurance policies for large vehicles such as semi-trucks or trailers tend to have higher limits than personal auto policies, so that this route could get claimants more compensation.
Be ready to handle claims against your business by maintaining a comprehensive commercial auto insurance package with sufficient coverage limits. Policy benefits can go towards legal expenses, settlement agreements, or court-ordered awards for damages.
Falling Below Threshold Requirements Could Subject You To Penalties
You must carry adequate commercial auto insurance in Ohio to avoid costly penalties. Having coverage that falls below state minimums or letting coverage expire may subject you to a financial penalty, or the state may revoke one or more vehicles’ license plates. Furthermore, allowing commercial auto coverage to lapse might mean paying higher premiums when you purchase coverage again.
Safe Driving Can Reduce Commercial Auto Insurance Claims and Costs
It may be prudent to offer training to your drivers about safe driving practices. Experienced drivers can benefit from this training because it makes people more conscientious about safely driving. Employers should check job applicants’ driving records before making a hiring decision. Both of these measures can mitigate liability risks and commercial auto insurance costs.
In considering what you need to know about commercial auto insurance, it is essential to remember that business owners who employ individuals who drive as a part of their regular job duties must be conscientious about safe driving practices. It can lessen your liability risks, lower insurance costs, and keep employees and other drivers safe.
About Haughn & Associates
Founded by Michael Haughn in 1986, Haughn & Associates is a full-service, family-owned, independent insurance agency based out of Dublin, Ohio. H&A strives to provide the best possible price and unique insurance solutions across a myriad of industries, including construction, IT, Habitation & Commercial Property, Agriculture, and Engineering. Devoted to providing the best of business insurance, life and disability insurance, personal insurance, employee benefits, and bonds, H&A is proof that success lies in long-standing client relations and satisfaction. To learn more about how H&A can be of service to you, contact us at (877) 802-2278.
