As the owner of a small business, insurance can be difficult to understand. You know you need business liability insurance, but what kind? Which insurance broker should you work with? What assets do you need covered? How comprehensive does your policy need to be?
This is especially true when you’re looking into auto insurance for your business. There are many things to consider. You need to pick a plan that works for you, based on the number of vehicles you have and what they’re used for. This leaves you to decide whether your business needs regular commercial vehicle insurance or if you should look into fleet insurance.
WHAT IS THE DIFFERENCE BETWEEN FLEET AND COMMERCIAL?
If your business requires you or your employees to get behind the wheel, your business needs a commercial auto insurance policy. But when it comes down to deciding, the difference is mostly in size. The number of vehicles you’re looking to insure will determine what kind of car insurance your business needs.
Commercial insurance functions similarly to personal automobile insurance. The major difference is that instead of having a vehicle registered in your name, it’s registered in the company’s name.
Fleet insurance policies, however, include multiple vehicles. Typically, once you have 5 or more vehicles registered under a company name, you’ll want to look into fleet insurance. However, this will depend on your insurance provider. Fleet vehicles are owned by the company, not the individuals who drive them.
WHICH POLICY DO YOU NEED?
While both fleet and commercial policies protect your business in the case of property damage while driving, there is a difference between them. It’s important to make sure you know the difference and which policy will work best for your business.
Commercial
Commercial vehicle insurance is necessary for anyone who drives as a part of their business. This is the more general of the two types of coverage. Commercial insurance offers complete coverage and has different plans based on what you want. It can be used to cover any number or types of vehicles so long as they are used for your business.
You need commercial insurance for any vehicle (truck, taxi, van, limo, bus, etc.) that you use for business. This is because your personal auto policy will not cover vehicles you use for business. This policy is ideal if you are looking to insure fewer (typically 1-5) vehicles.
Fleet
Fleet insurance is the policy for you if you are insuring multiple vehicles and will have multiple drivers. It’s an easy way to cover all your business vehicles under one policy and remain organized. Keeping all your vehicles under one policy makes it easier to manage, track, and renew the insurance for your fleet.
Often, insurance companies will offer a group rate to provide you discounts on your policy. This helps you to save money in the long run.
An added benefit is transferability. Any driver in your company has permission to drive any vehicle under your fleet insurance policy. This makes it easier if your employees need to switch or borrow another vehicle unexpectedly.
If you use any sort of commercial fleet for your business, you will need commercial automobile insurance. Be sure to invest in the insurance coverage that works best for your business. No matter which you choose, your level of insurance coverage will depend on your insurance provider.
To learn more about commercial and fleet policies, contact a Cornerstone Insurance broker today. We’ll help you decide which type of policy will offer your company the most benefits and advantages.
