The choice of whether to invest in a fleet or hire owner-drivers is a decision facing many delivery businesses. Whether a company delivers construction supplies, pizza, or flowers, vehicle options can affect insurance premiums and driver pay. Below are some options for business owners who are searching for commercial vehicle insurance.
Company Cars & Commercial Coverage
If a business uses a corporate fleet, it needs Commercial Auto Insurance Service in Altoona PA. Business-use vehicles are a higher risk because they’re on the road more often and in more dangerous conditions, so there’s a greater chance of an accident. Therefore, commercial policy has a higher premium than an equivalent personal insurance policy.
Require Employees To Purchase Their Own Coverage
A business owner who asks employees to use their own vehicles should tell the workers their personal insurance coverage won’t be sufficient in the event of a work-related accident. Most personal policies don’t cover these events because of the higher risk of work-related driving. An employee who wants on-the-job coverage should buy his or her own commercial policy.
Non-Owned Coverage
Businesses that use employees’ vehicles but want to protect themselves can buy non-owned coverage. Delivery businesses split the cost of coverage with their drivers and while the driver is responsible for themselves and their vehicle, the business pays for third-party liability insurance. Such coverage can cover a temporary rental vehicle, which is often used if a business’ regular delivery vehicle is in for repairs.
Other Issues
Often, delivery vehicles contain valuables such as freezers, storage units, and generators that can be lost in an accident. Therefore, a business owner should buy additional coverage on vehicles containing important items. Changes in parking status, employee turnover, and fleet additions are common in delivery businesses, and owners should periodically review their insurance coverage to ensure there is adequate Commercial Auto Insurance Service in Altoona PA.
Business owners can take other steps to minimize the risk of an insurance claim. They should review each potential employee’s driving record and take part in a pull program that allows the company to be notified if a worker commits a driving offense after hiring.
