You own a small business. You work very hard to maintain it. Yet, you know that accidents can happen at any time. This may be one of the reasons you invest in commercial auto insurance. It can cover many of the risks that can impact your business' vehicles. The key is to know how to insure your car and when you need to do so. As an independent contractor, the rules may not seem as clear. Here is what you need to know.
When To Insure Your Vehicle
Commercial auto insurance applies to business-owned vehicles. It also applies to vehicles you own personally and use for routine operations. This may include the truck you use for your landscaping business. It could include the vehicle you use to go from job site to job site. It can also include the car you use to drive clients around as a real estate agent. If you use your vehicle for your business, you need coverage on it.
Minimizing Risks For Liability Claims
Liability claims are some of the most expensive types of risks for contractors. They occur commonly, though. For example, your truck can cause damage to another party's vehicle. An accident on a roadway can occur. Or, you could have a person suffer an injury due to an accident you cause. Liability insurance provides protection here. It covers claims, settlements, and even legal defense should someone try to sue you.
Protecting Your Assets
Most independent contractors do not have the ability to make large payments to repair their vehicles. Yet, accidents happen. You may do damage to your vehicle when using it, such as damaging it while backing up. You may have a fire start in it due to a lightning strike. Commercial auto insurance can help minimize these risks. It can help you pay for your vehicle damage. Be sure to choose comprehensive and collision insurance for these types of risks.
As an independent contractor, your business insurance costs may be a write-off on your taxes. They are also a type of operating expense you do not want to avoid. Commercial auto insurance is just one component of this. Most companies also need additional protection. Your business insurance coverage can help you keep the doors open even if an accident does occur.
Work with your Select Insurance agent to customize a policy that represents all your risks. Minimizing these risks can be a critical factor.