Commercial Auto: More than billboards on wheels.
The cars and trucks that make up your businesses are more than just mobile advertisements. Whether they haul your tools, tow your tractor, get your employees from Point A to Point B, or glide you around in style from appointment to appointment, these wheeled offices are physical manifestations of your business. And yet, for most business owners, commercial auto insurance is an afterthought, something they think of after they decide what brand of coffee to order for the office (I’m partial to Counter Culture and Black Light myself).
I’m ordering coffee for this office, dude.
But my people are good drivers.
Yeah, that’s what you said about your sixteen year old.
The sad truth of the matter is that commercial auto accidents are incredibly common. According to Automotive Fleet magazine, “The annual accident rate for commercial fleets is around 20%, with some industries, such as pharmaceuticals, even higher.” That’s right – at least 20% of commercial vehicles are involved in an accident every year. That means two out of ten of us will have an employee (or ourselves) involved in a commercial auto accident every year – and it doesn’t take a genius to figure out that the longer you are in business, the more likely your business is to experience an accident.
Neglecting your commercial auto insurance is just, well, bad business. And neglect isn’t just not having it – though that would be catastrophic. It could also be something as simple as not having the right amount of coverage. As I explain in my blog and video on Auto Liability, not having enough coverage could leave you with a massive out of pocket expense after an accident. For business owners, the crazy thing is that you don’t even have to be behind the wheel, as your company could be paying out a lot of money if your driver is at fault – especially if someone in the accident gets hurt or killed.
I mean, my manager usually handles that stuff.
Come on, it isn’t that bad, is it?
How bad can it be, really? I mean, 20% is one thing, but they are probably just fender benders, or a lawn mower falling off of the back of a truck and hitting a parked car, or me bumping my amp into another band’s van before a gig. Right?
In 2017, accidents involving work vehicles cost businesses $57 BILLION dollars. Yes, that’s a “B,” not an “M.” Commercial auto insurance is a massive issue that never gets talked about in the business world. Along with Employment Practices lawsuits, commercial auto claims are among the most common a business will face. But if you asked most business owners how much coverage they have, you are just as likely to get a shrug of the shoulders as an awkward smile.
If you don’t know how much coverage you have, ask your agent. Or better yet, find an agent who will do regular reviews with you like, oh I don’t know, Alliance Insurance (come on, I had to!).
But delivering my custom head scarves is expensive enough.
Don’t I have enough insurance?
You probably think so. But most of us have no idea how much is enough until we use it. An at-fault accident involving a luxury vehicle can cost anywhere from $50,000-100,000 in property damage alone. If someone get’s hurt it can cost much, much more – and fatalities can drive the costs into the millions. Very quickly the minimum limits won’t cover it.
And it may seem like you have plenty of policies, or you assume that your Commercial Package Policy has enough. The best course of action is not to risk it. Fill out the form below and let one of our helpful commercial agents walk you through a thorough review, giving you all the knowledge you’ll ever need to be protected from what can happen to your business.