Tips on Insuring a Business Vehicle
Drivers of a business vehicle are given a great deal of responsibility. They need to adhere to the rules of the road, respect other motor vehicle operators and they must ensure that a product or service is delivered on time. Likewise, the business owner must provide the adequate amount of insurance coverage so that in the unfortunate event of an accident or other unforeseen circumstance, both the business and the operator are legally and financially covered. Let us have a quick look at a few primary factors to consider when insuring a business vehicle.
What is Being Transported?
The cost and coverage of a policy can be determined by the freight being transported. Naturally, an armoured van used to transport diamonds will incur a higher premium than a van delivering groceries door-to-door. In addition to valuable goods, transporting hazardous materials may also require a different type of policy with a greater amount of financial coverage should an accident occur.
Basic Liability is Often Times Insufficient
While basic liability insurance is the minimum amount of coverage required to operate a vehicle, business owners should seek addendums to such packages that may include theft, fire and possibly roadside assistance. These additions are especially important when multiple vehicles are owned and therefore fleet insurance is the preferred option. A package rate can save money while providing the protection necessary should the need arise.
Establish the Drivers' Credentials
While an insurance policy will give comprehensive coverage in any number of instances, it is important to establish that a company's drivers have clean driving records and possess no outstanding traffic violations. In the case of an accident, should an employee have a poor driving history, the company may pay a higher future premium than had the accident occurred with a driver with no prior violations.
Vehicles That Transport Individuals Will Have a Higher Premium
This should be of no surprise but it is still important to mention here. For example, taxis, buses or vehicles designed for the transport of medical patients will naturally carry a higher premium than those vehicles which are designed to transport goods alone. Furthermore, the driver may be required to pass a screening test to ensure that he or she is capable behind the wheel of such a vehicle.
Shop Around as Much as Possible
With the increased number of insurance companies and the advent of the internet, a business owner has many options available to choose from. Besides analysing the types of coverage different providers offer, there may indeed be substantial pricing differences from one company to the next. An excellent way to determine this is by receiving free quotes online (AXA Business for example offers online quotes) or contacting an insurance representative and enquiring if they have any special offers available for new business owners of those looking to purchase fleet insurance, for instance.
Consider the Length of Policy Coverage
Most insurance policies are quoted on a yearly basis, however some companies offer lower monthly rates should the owner decide to opt for a two or a three-year plan. Before deciding to do so, it is essential to determine whether or not the insurance company will be fully able to satisfy any future needs that may arise and that their coverage is adequate.
With this handful of simple tips, it can be easy to find a policy perfectly suited for a specific company's needs. It is important to review each policy carefully, to determine how each will affect the business and above all to make certain that the coverage is sufficient.