As a small business owner with a fleet of vehicles and motorcycles, it’s essential to make sure that your fleet is properly insured, just as you would your personal car or bike. This type of insurance is generally not covered in your Business Owners Policy, so you may need to get it separately. Although many states require businesses to have separate insurance for different categories, such as liability insurance for physical injuries and property damage, you want to include them all in one policy.
Regardless of the regulation in your state, having auto insurance as a small business is critical for your business’s survival and growth. You may have a few questions about business vehicle insurance, and here are a few reasons why you need insurance for vehicles and motorcycles.
Liability Coverage
One of the most significant advantages of business insurance is that in the event of an auto accident involving your business, the insurer is obligated to cover all damages the company is legally required to pay. However, the insurer is only liable to cover property damage or bodily injury up to the policy limit, provided the accident is caused by an insured vehicle. Sometimes an auto liability lawsuit is against your business; in this case, the insurer is also liable to protect your business or settle the lawsuit on your behalf, which is also entirely up to the insurer.
Should your policy limit be exceeded, the insurer’s duty to settle or defend you also subside; in this case, you have to fend the case using your own attorney. Depending on who caused the accident, punitive damages may be awarded to the victim in the case of gross negligence.
Types of Vehicles Covered
Depending on the scope of coverage you choose for your business, auto insurance can vary between narrow and broad. When you have a large fleet of vehicles and motorcycles, you need to consider the more vehicles covered in the policy, the higher the premium. A few options businesses can choose from; coverage of autos owned by the business; coverage of cars and motorcycles owned, hired, or leased; and coverage for all business-owned autos, including those not owned by the business hired or leased.
Businesses usually opt for the latter option because it covers the business from possible liability should any employee use their personal vehicles on the behest of the company.
Physical Damage
There are a few events that an insurer will cover physical damage or complete loss of your motorcycle. Depending on the value of your bike at the time of damage or theft, the insurance will either pay for the damages incurred or replace a bike of the same quality and value. Motorcycles are somewhat prone to theft. In this case, the insurance has an obligation to try to locate your stolen bike and return it back to you. Depending on the condition, they may pay you any amount needed for damages caused by the theft.
