Florida Commercial Auto Insurance
Florida has over 2 million businesses that need Commercial Auto Insurance to protect against liabilities that arise from a variety of incidents involving their work vehicles. Personal auto policies generally don't cover vehicles used for business because they're typically exposed to more driving which means more risk.
If your business owns any vehicles or uses any vehicles in its day to day use, it's necessary to have them insured on Commercial Auto policy.
At The Bunker, we know the South Florida Commercial Auto premium rates are always on the rise, and we are ready to help your business save money.
Things That Impact Your Commercial Auto Premium
Unfortunately, accidents happen.
And when they do, be prepared for your commercial auto insurance premiums to rise. Owners of large Florida commercial fleets are especially hit hard when rates rise. The reality is that accident history is a small part of a much bigger picture, here are a few unexpected reasons why your Commercial Auto premiums may be increasing:
Hiring inexperienced drivers - The commercial driver shortage continues to increase risks on the road. Making sure you have a thorough driver hiring and training practice will help you maintain lower rates.
Distracted driving - Texting has become a dangerous distraction for drivers on the road.
Increasing Medical Costs - an increase in the frequency and cost of soft tissue surgical procedures is another factor that is making auto claims more expensive.
Frivolous Lawsuits- In South Florida, insurance fraud is at an all time high. Having one of your drivers involved in an accident, almost guarantees that the injured party will find an attorney to go against your company which intensely increases the cost of claim.
Commercial Auto Frequently Asked Questions
Commercial automobile insurance is a broad term that refers to most commercial business automobiles, including but not limited to:
- Company cars
- Cargo Vans
- Pickup trucks
Commercial auto policies cover personal cars that are used for business, as well as SUVs, light-duty trucks, buses, limousines, taxicabs, vans and other delivery vehicles used solely for business purposes.
Commercial auto insurance is similar to personal auto insurance in basic coverage, such as liability, comprehensive, collision, and other types of coverage that are specific to business vehicle use. A commercial auto policy is designed to protect your business from significant losses that could affect your company’s financial well-being.
Commercial auto insurance policies combine several different types of coverage – some are required and some are optional.
Hired and Non-Owned Auto (HNOA) covers liability expenses for accidents involving vehicles that your business uses for work purposes but does not own.
This includes vehicles that your business rents, as well as your employees' personal vehicles that are used for work errands.
This portion of the commercial auto policy covers harm to others in an accident caused by you or your employee. Bodily injury coverage will provide compensation for medical costs, funeral costs if necessary, and the costs associated with a lawsuit. The amount of compensation your company receives depends upon the limit set on your bodily injury liability coverage, as well as your deductible.
This coverage will pay the costs to repair property damage caused by you or your employee. The amount of coverage you receive is based on the limits you set and your deductibles. It is a good idea to work closely with an independent agent to assess your risks as well as the potential costs of injury, property damage and legal fees. For the best protection, consider buying a commercial umbrella liability policy.
As with your personal auto policy, a good commercial auto policy should include adequate collision coverage to pay for the damage to your vehicles in the event you or your employees cause an accident.
Known also as “other than collision,” your comprehensive coverage is an important protection for damage to your vehicle or loss due to causes other than collision. These causes can include weather, theft, and vandalism.
If one of your drivers is in an accident caused by another motorist who does not have adequate insurance, this coverage will help to pay for damages and injuries to your vehicle and your driver, up to the limits set on your policy.
This coverage pays for medical and/or funeral expenses for you, your drivers, and passengers after an accident.
Small business owners and entrepreneurs often use their own cars while on the job without a second thought. However, it is important to know that your personal insurance may not cover commercial use of your auto.
It’s very common for a small business owner to send an employee out on an errand, whether to get supplies from the local store or to give a business consultant a ride from the airport.
If the staff member gets behind the wheel of his own car, and the business owner does not have a commercial auto insurance policy in place that covers that worker and his car, any injuries or damage that result from an accident may not be covered.
Regardless of how much or how little you and your employees use personal vehicles in the course of doing business, getting adequate coverage in place can prevent a financially damaging event from putting your business at risk.