Businesses Need to Find the Best New Jersey Commercial Auto Insurance
When operating a business in New Jersey, there are both federal and state insurance requirements. It is therefore important to learn about the different types of commercial insurance available. While it is prudent to obtain cost-effective insurance protection, it is equally important to ensure that the policy purchased provides satisfactory coverage. This is necessary in the likelihood that an employee is driving a company vehicle, or a personal vehicle, during the course of performing work-related duties, and becomes involved in an accident.
If the accident also involves injuries to the driver, or others, New Jersey commercial auto insurance will help to pay the cost for repairs and any medical attention needed. This coverage is essential because auto accident claims can often be extremely expensive. The first thing a business owner should do is to educate his or herself about the various commercial auto insurance policies available.
Annual review of existing policies is crucial
Small businesses should annually review their insurance policies to verify that their coverage meets their current needs. One way to accomplish this is to examine rates from several companies, being sure to compare plans that provide identical coverage. All motorized vehicles need to be insured because automobile liability insurance is required by most states.
Typically, New Jersey commercial auto insurance policies have higher liability limits, for example, coverage of $1 million is probably sufficient to cover accidents involving less severe injuries. They also may have provisions that cover rented and other non-owned vehicles, including employees’ cars driven for company business. This is helpful if employees are often asked, or required, to use their own vehicles during the course of an average workday.
Several factors related to ownership and use of vehicles helps to determine whether a personal or commercial policy is appropriate. These generally include the following:
- Who owns or leases the vehicle (an individual or the business as an entity)?
- Who drives the vehicle (owner or employees)?
- How is the vehicle principally used (for example, transporting people, or delivering packages)?
- Is the vehicle used for carrying hazardous materials?
These are factors that can help determine rates, and will help in obtaining the proper coverage for the right situation. Any commercial driver or business owner using commercial vehicles needs to know about New Jersey commercial auto insurance.