In our last article focused on insurance for home-based businesses, we touched upon the need to secure commercial vehicle insurance for any cars / vans / trucks / service vehicles used for business purposes. It is a mistake to think that your personal auto insurance will cover you. It won’t and could put your own personal auto policy in jeopardy as well.
E&Y has a special interest in Commercial Vehicle Insurance for Michigan-based businesses and works with landscapers, construction teams, plumbers, real estate agents, caterers, and more to ensure there is no disruption to their business due to a vehicle claim.
Frequently Asked Questions About Commercial Vehicle Insurance in Michigan
Q. Why can’t my personal auto insurance cover my business use as well?
A. Insurance policies are created specifically for individual situations and policy holder needs. While your personal insurance may meet your needs as an individual, there are situations where you’d need coverage beyond the scope of a personal policy; for example, disruption insurance should your vehicle be out of commission due to damage and/or repairs; or coverage for employees who may be involved in an accident while operating a business vehicle.
Q. How am I and my business protected with Commercial Vehicle Insurance?
A. With the right policy, your business will be covered for:
- Injury to you, your employed drivers or passengers including medical expenses and lost wages
- Injury to someone else involved in an accident
- Damage to your vehicle and/or property damage
- Loading and unloading liability for when you’re transporting products to customers or events
- Replacement car coverage for when your commercial vehicle is being repaired
- Important to note that if you operate your commercial vehicle outside of Michigan, additional coverage should be investigated to ensure you and your employees are covered
Q. What happens if I don’t purchase Commercial Vehicle Insurance?
A. We don’t recommend it! If you do not have the right protection for your commercial vehicles, you may run the risk of losing your personal auto coverage in addition to having to pay out-of-pocket for repairs, injuries and more. It’s definitely not worth the risk.
Getting it Right Starts with the Details
To ensure our E&Y experts provide you with a policy that meets your needs, we will need details as they relate to your overall business, such as:
- The length of time in your current business;
- If your business is required to have state, Interstate, ICC or FHWA filing
- If you currently have commercial auto insurance, and if so, for how long
- Description of your type of business service provided.
When looking at commercial insurance, we will require specific details pertaining to your business vehicles, including:
- The number of vehicles to be commercially insured (if you have more than 4 you may require fleet insurance)
- Commercial Auto classifications, such as private passenger, light truck, or heavy truck
- Commercial Vehicle usage, for example, will your cars be used to deliver pizza or to drive patients to medical appointments
- In the event you choose to purchase a commercial vehicle insurance policy, your insurer will ask you to provide Vehicle Identification Numbers (VINs) on each vehicle your business owns to help guarantee proper classification.
- Date of manufacture, purchase price, age and current condition
- The radius of operations and mileage, and whether or not your business vehicles are garaged in the same zip code location
- You may also need to provide the number of employees who will be driving the commercial vehicles owned by your business
- The average age of your drivers and their history of any accident and/or traffic violations, if applicable, may be considered as well.
When looking for the right insurance to protect your business, don’t leave it to chance; leave it to the team of experts at E&Y Agency. With decades of experience protecting businesses just like yours, there’s nothing we haven’t seen. Let’s talk!
About E&Y Agency
E&Y Insurance and Tax Agents are dedicated to giving our clients the products that provide quality protection and value pricing and the peace-of-mind in times of crisis. Our goal is to establish a successful partnership with our clients, our staff members, and our partner companies. Our success is measured by our clients choosing us because they believe in our ability to meet or exceed their expectations of price, service, and expertise. Call us now to talk about your insurance or tax needs!
