How to Choose the Right Transportation Insurance for Your Business?

 How to Choose the Right Transportation Insurance for Your Business?

Let’s face it: Businesses don’t all need the same kind of insurance. Some may need it more than others, but no matter what type of business you have, you will want to make sure that you are able to cover all your bases when it comes to transportation insurance. If you are just getting started with your transportation company, chances are you aren’t looking at enough coverage to protect your company against potential Liability risks and other potential problems that could arise as a result of accidents on the road. But once you start growing, and your company starts adding more drivers and subsidiaries, you’ll want to make sure that you have the right kind of insurance for each situation. That way, if one part of your business is more prone to accidents than the others, you will be covered to protect yourself against liability issues while still being competitively priced.

What is Liability Insurance?

Liability insurance covers the potential for damages caused by negligence or other forms of bad acts on the part of the insured. Whether you are an individual driver or the person operating a business, liability insurance is intended to protect you and your assets from financial loss. It is meant to cover both you and anyone else who may be involved in an accident caused by your car. There are different types of liability insurance, each with its own coverage requirements and coverage limits.

What is Excess Coverage?

Excess coverage protects your company against damages caused by someone else. For instance, if your employee causes an accident while driving your company car, you may want to purchase liability insurance to cover you as well. However, some types of coverage do not require you to purchase insurance if the other driver is responsible for the damages. That is known as an excess coverage policy. Some common types of excess coverage include Collision coverage - Which ensures that if an accident does occur, you are protected if the other driver is at fault. comprehensive - This includes medical, Shipping, transportation, property, and more. Roadside assistance - This is intended to cover you for any emergencies. General Liability - This is meant to cover you and your employees as well as anyone else who may be involved in an accident.

What is Comprehensive Coverage?

Comprehensive coverage is meant to cover you and your company, not just your car. It will provide protection against damage caused by lightning, hail, flood, fire, explosion, and more. You should have some protection if a certain type of weather occurs regularly in your area. A great example of this is flood insurance. If you regularly experience flooding, you would have flood coverage. Some companies also offer cycling coverage that will protect you if an accident involving a car, a bike, or another vehicle could occur.

What is Roadside Assistance?

Roadside assistance is meant to cover you for any type of issue that may arise while your car is on the road. For example, if you have an issue with your car battery, roadside assistance will help you get it charges up as quickly as possible. Some companies also offer a bicycle coverage which will protect you if an accident involving a bike and a car could occur.

What Is General Liability Insurance?

Some companies also offer general liability coverage which will protect you and anyone else who may be involved in an accident. You should have this type of insurance if you want to be responsible for another person’s medical bills or if you have a history of driving while having a drink or two.

Business Owners and Personal Injury Protection (BOP)

Personal injury protection (BOP) is meant to cover you and your employees if an accident occurs while they are on company business. It is a tool to protect employees and the company itself in case of an accident. Some companies also offer a plan that includes a rider protection benefit that will cover passengers in the case of an accident.

PIA Premiums & Best Practices

If you are operating a small business, you may not need to worry about the cost of insurance. But for larger companies, it is important to consider your costs of operation and the level of protection you need. Make sure you are getting the right coverage for your business type and size. For example, if you operate a stoplight business, you will want to make sure that you have the right coverage for both you and the people who work for you. If you accept packages that include liability and comprehensive coverage, you may end up paying more than you need to.

Bottom Line - What Next?

So now you know what transportation insurance should cover and why it's time to get to work. The first thing you should do is get your policy in order. Get all your insurance documents in order, including your policy, proof of insurance coverage, driver’s license, and vehicle information. Next, start cost-shopping. 

Start looking at what coverage and costs are available to you and your company, and see if you can save on any of these costs. Finally, make sure you are filing your tax return properly. You will likely end up paying more in taxes than you need to, so it is in your best interest to get as much coverage as possible.