When a business needs to insure its fleet, it will have to keep the employment status of their drivers in mind. It will also need to think about the type of coverage every car it uses will need.
As an insurance agent, it's your job to guide business owners or managers through the selection process. You'll have to ensure they get adequate protection that targets their drivers. What are some things you must think about in doing so?
Commercial drivers have different characteristics. Some might own the vehicles they drive, while others won't. Some might carry equipment; others might ferry people from place to place. Their insurance policies must match their operating risks.
Determining Ownership Helps You Set Up Coverage
Most employee drivers will be full-time employees of the business seeking coverage. However, they may or may not drive vehicles owned by the company. Some might operate their own cars.
Depending on the ownership of the vehicle, the type of commercial auto insurance you need to provide employers and employees might vary. You must establish who owns which vehicles when helping the business find coverage. This will help you avoid potential disputes in coverage following a policy claim.
Still, regardless of ownership, the business must maintain an interest in the car. Both parties will often have to become named insureds on the policy. So, if an accident happens, both parties will have coverage. Make it a priority to establish the right policy limits for both the business and the insured driver.
The Coverage You Should Offer
Commercial auto insurance will come tailored to the interest of both the business and its drivers. Some of the coverage within policy might include:
- Liability Coverage: You must offer at least your state's liability coverage requirements. This coverage will cover the insured if a driver's actions lead to an at-fault accident. It will help cover the other person's losses.
- Comprehensive Insurance: This pays for personal vehicle damage resulting from such incidents as fires, theft or severe weather.
- Collision Coverage: This pays for vehicle damage resulting from a wreck or collision.
- Uninsured/Underinsured Coverage: If another driver causes a wreck, they might lack appropriate liability coverage to pay for the damage. This coverage can help the business pay for its own losses, without penalizing it for fault.
Work with your customers to determine the appropriate levels of coverage for them. The right approach will guarantee them better protection when their drivers hit the road.