Risk vs. Reward: Is your business properly protected for the open road?

What is Commercial Auto Insurance?

Commercial Auto insurance helps cover the costs of an auto accident if you or an employee is at fault. This coverage can help pay for damaged property and medical expenses - even in a fatal accident.

Commercial Auto insurance can help protect business owners and their companies if, for example:

  • An employee may cause an auto accident while driving one of the business vehicles or even their own car for business-related errands or activities.
  • You swerve off the road while driving in a company vehicle and cause injuries or damage to someone else's property.

 

Commercial Auto coverage for veterinarians

One of the most significant risks you face is believing or thinking that "it" can't or won't happen to you. Ultimately, only you can decide what "it" may be. Perhaps it could be a client suing you for malpractice or an employee stealing $25,000 in inventory so they can finance a drug habit you were unaware of.  "It," can also be a catastrophic auto accident.

Because most people do not think catastrophic things can happen to them, they choose low personal auto liability limits. Perhaps it's because it can be too scary to think about one day causing a horrible car accident that results in serious injuries or death to another person. It becomes too easy to chase saving "15% in 15 minutes" with Geico or believe that Jake from State Farm has your best interest in mind. But unlike insurance for personal autos, business auto liability limits are typically higher. However, there should be no difference in the liability limits you choose personally or for a business vehicle.

Purchasing insurance is a transfer of risk, period. Auto accidents are the quickest way to have a nuclear-sized liability claim against you or your business. But if you also consider the fact that society views you as a 1 %er because you are a doctor, in the United States, you will always be a carrot for any ambulance-chasing attorney. For that reason, we always recommend taking the highest liability limit on an auto policy, regardless of whether it is a personal vehicle or a business auto.

However, business-related vehicles may need more unique insurance protection with higher limits, especially if special equipment is installed in the car.

It is essential to hold some auto coverage, even if your business owns no vehicles. If your veterinary practice provides off-premise customer service or any vehicle is used to run errands, you will need coverage if one of those vehicles causes an auto accident while performing duties for your business.

One of the most common daily occurrences in a veterinary hospital is running routine errands. If any employee uses their vehicle to perform these duties and causes an auto accident, you can be sued very quickly. For this reason, in the absence of a business auto policy, we recommend adding Hired & Non-Owned Auto Liability to a Business Owners Policy (BOP).

Commercial Auto coverage types

Commercial automobile policies include property damage, liability insurance, and more:

  • Liability coverage protects your business from claims for injuries and damage to individuals and property. It is required by law if you want to own a vehicle.
  • Underinsured Motorist coverage helps pay your expenses if an underinsured driver hits you. In some states, Underinsured and Uninsured Motorist coverage is combined.
  • Uninsured Motorist coverage protects you if you're in an accident with an at-fault driver who doesn't carry liability insurance.
  • Collision coverage protects against vehicle damage not caused by a collision with another vehicle.
  • Comprehensive coverage addresses all damage to a vehicle, including acts of nature, theft, and vandalism.
  • Hired Auto Liability coverage protects your business from claims for injuries and damage to individuals and property caused by a vehicle that you rent (<12 months).
  • Non-Owned Auto Liability coverage protects your business from claims for injuries and damages to individuals and property caused by a vehicle that you do not own. This is the primary reason we always recommend an Umbrella insurance policy: employees can cause catastrophic claims, especially when they get behind the wheel of a car.

What vehicles does Commercial Auto Insurance cover?

Commercial Auto coverage is more extensive than personal automobile insurance policies. Covered autos may include:

  • Cars
  • Trucks
  • SUVs
  • Mobile veterinary hospitals (Laboit, Ford E450, etc.)
  • Trailers

Veterinary practices have particular needs regarding coverage, especially auto insurance. These policies handle situations that may never arise with other businesses while working with animals. Vetinsure specializes in providing coverage tailored to the veterinary industry and works with various insurance companies to help protect your practice.

Does your practice need Commercial Automobile coverage? Call Vetinsure today at (800) 272-1249.