Obtaining proper commercial auto insurance is very important to business owners. The right policy minimizes financial risk to the company. It also keeps a business safe from lawsuits and reputation concerns. One of the forms business owners will fill out when obtaining coverage is the Business Auto Coverage Form.
Defining Liability Risks
The Business Auto Coverage Form is one of the most common documents a company will sign. This document helps put liability insurance in place. It is a legally binding contract. It generally applies to autos. However, it is also used for many other types of vehicle. These may include trucks, trailers, larger vehicles, vans and others using public roadways.
The form has five sections to it. Each one provides details about the type of coverage the insurer provides the business. The five sections usually include the following:
- The Types of Vehicles: It outlines the specific vehicles covered by this particular contract.
- The Causes of Damage: May include things like storms and fires
- Types of Damage Covered: This lists the types of included perils or incidents covered by the policy.
- Insurer's Obligations: This lists what the requirements are of the insurer in providing and signing the contract.
- Business's Obligations: This lists all responsibilities of the business in maintaining the contract.
Read through each component. Be sure you understand all details of the plan. Commercial auto insurance needs to be comprehensive enough to meet your specific needs.
Reviewing Your Policy
Business owners should review their commercial auto insurance on a routine basis. Do this at least one time every year. Look at the amount of coverage in place. Consider your current vehicles. Have you added any to the lineup this year? Did your vehicles depreciate in value? How many claims occurred in the last year?
When choosing business insurance, the Business Auto Coverage Form is one component. It outlines liability insurance. However, you also need to think about property insurance, medical coverage, and uninsured driver coverage. Discuss this with your business insurance agent. Consider ways to reduce costs, too. Some companies offer discounts if you buy a business package with your auto coverage. If you need both, this can keep costs lower. Be proactive. Communicate openly with your agent about your coverage needs and any risks you have.
Need business insurance? We can help. Call Integrity Insurance Group, LLC at 512-989-6006 for a fast, free policy quote.
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