5 Common Times You Need Commercial Auto Insurance

Commercial auto insurance is one of the most common types of insurance policies companies should have. You may not feel that you have a fleet of trucks to worry about or that you have to cover the trips your employees make with their own cars. However, there are various instances in which having this type of business insurance in place can help protect your business and ensure it is operating with the financial protections it needs.

When Do You Need Commercial Auto Insurance?

If you operate a business and use a vehicle in any capacity as a part of that business or for business-related activities, you should consider the value of commercial auto insurance. Here are a few examples of when you may need this coverage:

1. Delivering goods. If you are delivering any type of goods to customers or other businesses, commercial insurance can help. This might include delivering newspapers, goods such as pizza, or retail products of any type.
   
   
2. Transporting equipment. If your business is transporting equipment to a secondary location for use, you could need this type of auto insurance. For example, you may be transporting cleaning equipment for a janitorial business or an on-site service you provide.
   
   
3. Hazardous materials. If your vehicles are transporting any type of hazardous material, you should have this type of insurance in place. This includes any type of flammable or explosive material even if you do this infrequently.
   
   
4. Transporting large equipment. Whether it is a plow or winch or even equipment being put into a business such as ovens or vents, you should have insurance in place. This includes any instance in which you are moving large equipment as well as smaller components.
   
   
5. Transporting people. In any instance in which you are transporting customers, clients, or even employees, proper commercial auto insurance can help give you piece of mind.

As a business owner, it’s helpful to know your operations are can be protected from financial loss. Business insurance is there to help with this. With the right type of commercial auto insurance customized to meet your company’s specific needs, you may reduce many of the risks your vehicles and your business faces. Ensure your insurance matches the way you do business to potentially safeguard your operations.