Running a business involves various types of insurance. A comprehensive commercial insurance policy is a necessity for many companies, covering aspects such as worker compensation and common natural disasters. However, it’s crucial to understand whether your company vehicles require auto insurance.
Understanding Commercial Insurance Coverage
Most businesses in Eagan, MN, have commercial insurance that covers only the building and property. Some policies may cover vehicle damage under specific circumstances, such as floods or vandalism. However, this insurance does not extend to vehicles once they leave the premises or are in use. Some commercial insurance policies explicitly exclude vehicles. Therefore, it is essential to consult with an agent at F.I.R.E. Leaders Financial to understand what your policy covers.
The Need for Auto Insurance
Companies that own vehicles must have commercial auto insurance. This coverage protects businesses during accidents involving company vehicles used for business purposes or in situations where the other driver is uninsured. Commercial auto insurance may also be necessary if your employees use their personal cars for work-related tasks, as this often falls under the employer’s responsibility.
Legal Requirements for Coverage
Auto insurance laws vary from state to state, with many requiring minimum liability insurance. This type of insurance covers damage and medical expenses for the other party involved in an accident. However, comprehensive and collision coverage can be added to commercial vehicles. A professional at F.I.R.E. Leaders Financial serving the Eagan, MN area can help you understand local laws and regulations.
We understand that navigating insurance options and legal requirements can be challenging. Contact us today to learn whether you need auto insurance for your commercial vehicles.
