Commercial auto insurance is essential if you use vehicles for business purposes such as goods delivery, driving to work sites, meeting clients or if your employees drive company vehicles. If you are considering insuring your business in Minnesota, there are many things you should know.
You may not be sure how to acquire the insurance and why your business needs to be covered. Understanding the nitty-gritty of commercial auto insurance can help you to make informed decisions.
If you use vehicles for business purposes, request a commercial auto insurance quote from Lake Region Insurance Agency today. We are an insurance agent with over 50 years of experience helping businesses in Minnesota acquire specialized auto insurance coverage for their business needs at a friendly cost. No matter the size of your business, we can customize coverage that suits your needs.
What is Commercial Auto Insurance?
Commercial auto insurance is a policy that covers the business against liability incurred from accidents involving business vehicles. The coverage also provides specific compensation for those who suffered bodily injury in business vehicle accidents. Commercial auto insurance may cover accident liability from the following business vehicles.
- Food trucks
- Company vehicles
- Box trucks
- Business vans
- Construction vehicles
- Service utility trucks
Commercial auto insurance can offer collision coverage and liability coverage. It is worth noting that there is a difference between commercial auto insurance and personal auto insurance policy. The two have different definitions, coverage, eligibility, limitation, and exclusions. So, please don’t go for personal auto coverage thinking it will cover property damage liability.
Who Needs Commercial Auto Insurance in Minnesota?
Any business that uses vehicles should have commercial auto insurance. This is whether you use personal vehicles for business purposes or you have a fleet of vehicles belonging to the business.
If you have a personal car policy but are unsure whether to sign up for commercial auto insurance, an insurance agent such as Lake Region Insurance Agency can advise you and help you make informed decisions. The agent would want to know how you use the vehicle and the frequency of your usage. This can help the agent assess your coverage needs and advise you accordingly.
Why Commercial Auto Insurance is Important
Anything can happen to the business that can leave you distracted and at a loss. For instance, if your business vehicle gets involved in an accident, gets damaged, and the occupants suffer bodily injury, yet, you do not have commercial auto insurance, you will have to get the money from your pocket to cover the costs.
But this isn’t the case with commercial auto coverage. The coverage protects your business against financial losses you’d have spent repairing business vehicles or compensating employees for their injuries. This helps you minimize the risk of running into huge losses that can stall your business operations.
Additionally, Minnesota has stringent laws on insurance. You could face harsh penalties and fines for driving without insurance. Protecting your business at all costs is imperative to avoid many inconveniences.
What You Should Know about Commercial Auto Insurance
Before you sign up for commercial auto insurance, it is important to get conversant with various guidelines to help you make informed decisions. Here are important things to know when looking for commercial auto insurance.
1. Understand how Commercial Auto Insurance Works
According to Minnesota laws, commercial auto insurance has a minimum amount of auto liability insurance coverage. Below are the liability limits.
- Property damage liability-$10,000
- Bodily injury liability-$30,000 per person
- Bodily injury per accident-$60,000
- Personal injury protection-$40,000
- Uninsured/underinsured motorist coverage-$25,000 per person
- Uninsured/underinsured motorist coverage-$50,000 per accident
The liability coverage limit depends on the number of business vehicles you have and how you use them. Your insurance agent may recommend higher liability coverage depending on the nature of your business.
2. Identify an Experienced Car Insurance Agent
With multiple car insurance agents in Minnesota, it is important to do due diligence and choose an experienced agent who understands commercial auto insurance. The agent should be conversant with how the policy works regarding premium discounts, deductible amounts, basic insurance options for car collision and liability, insurance premiums, and minimum and maximum coverage limits.
At Lake Region Insurance Agency, we have the experience to help you get what you want. Our team can assess your business insurance needs and offer as much help as possible with customized service that meets your expectations.
3. Understand How Commercial Auto Insurance Works
Commercial auto insurance coverage applies when your company vehicle gets involved in an accident. Suppose your driver causes an accident when driving your business vehicle and causes injury to another person or property damage belonging to another party.
In that case, the injured party can file a claim against your commercial auto insurance and bring a lawsuit against your business or the driver. Your commercial auto insurance will cover the damages and injuries incurred in the accident.
The insurance can also help you settle legal fees when you hire a lawyer to represent you in a lawsuit following an accident involving your business vehicles.
Work with an Experienced Insurance Agent
Commercial auto insurance is coverage that protects your business against liability that occurs from accidents involving business vehicles. Anyone operating a business and owning business vehicles should sign up for commercial auto insurance to protect their business from potential risks that can affect operations and cash flow.
If you are considering signing up for commercial auto insurance in Minnesota, working with an insurance agent who understands Minnesota insurance laws is important. Lake Region Insurance Agency is an experienced insurance service provider who can guide you through the process and help you get customized commercial auto coverage. Contact us today for a free quote.