Commercial Auto Insurance

Commercial Auto Insurance for Terre Haute and Wabash Valley Businesses

Commercial auto insurance is designed to help protect vehicles used in business operations and the financial responsibility that can result when those vehicles are involved in an accident.

Crapo Insurance Agency works with businesses throughout Terre Haute and the Wabash Valley to help identify commercial auto coverage appropriate for their operations, vehicles, drivers, and budget.

When Does a Business Need Commercial Auto Insurance?

A vehicle may need commercial coverage when it is owned by a business or regularly used for business activities.

Examples can include vehicles used to:

• travel between jobsites
• transport tools or equipment
• make deliveries
• visit customers
• carry employees
• provide service or repair work
• transport business materials
• perform sales or inspection work
• operate as part of a company fleet

A personal auto policy may not be designed to cover every type of business use. If a vehicle is regularly used in company operations, it is important to explain that use accurately when discussing coverage.

The right policy depends upon who owns the vehicle, how it is used, who drives it, and the nature of the business.

Liability Protection for Business Vehicles

One of the most important parts of commercial auto insurance is liability coverage.

If a covered business vehicle causes an accident, liability coverage can help pay covered amounts the business or insured driver is legally responsible for, subject to the policy's terms and limits.

This can include:

A serious vehicle accident can create substantial financial exposure for a business, so selecting appropriate liability limits deserves careful consideration.

Indiana's commercial automobile requirements include minimum financial-responsibility limits of $25,000 for bodily injury to one person, $50,000 for bodily injury to two or more people, and $25,000 for property damage in one accident. These are minimum legal requirements, however, and they should not automatically be assumed to provide sufficient protection for every business.

Protecting the Business Vehicle Itself

Commercial auto insurance can also provide physical-damage protection for insured vehicles when those coverages are selected.

A business that depends on its vehicles to operate may want to consider not only the vehicle's value but also the financial impact of having that vehicle damaged or unavailable after a loss.

Uninsured and Underinsured Motorist Coverage

Indiana requires uninsured and underinsured motorist coverage to be offered with motor vehicle policies unless it is properly rejected in writing.

This coverage can help protect insured persons when a covered loss involves another driver who has no insurance or does not have enough insurance to cover the damages involved.

The appropriate limits and available options should be reviewed when comparing commercial auto policies.

Who Is Driving Your Business Vehicles?

The vehicles are only one part of commercial auto risk. The people operating them matter as well.

Businesses should understand:

• who is permitted to drive company vehicles
• each driver's licensing status
• driving records
• the types of vehicles each employee operates
• whether employees take vehicles home
• whether vehicles are used personally
• whether employees ever use their own vehicles for company business

Driver history can influence both eligibility and pricing.

Crapo Insurance currently works with businesses and drivers with a range of driving histories, including clean records as well as tickets, accidents, or DUI-related issues.

Coverage availability and premiums vary by insurer and individual circumstances, but having access to multiple insurance-company options can help when one carrier is not a good fit.

Employees Using Their Own Vehicles for Business

Some companies have employees who occasionally use personally owned vehicles for errands, customer visits, deliveries, or other company activities.

That can create a different exposure from operating a company-owned vehicle.

Depending upon the business and policy, hired and non-owned auto coverage may be worth discussing when the company uses vehicles it does not own or when employees use personal vehicles on behalf of the business.

The exact protection varies by policy, so these situations should be described to the agent rather than assumed to be covered automatically.

Trucks, Vans, Trailers, and Specialized Vehicles

Commercial auto needs can vary considerably from one business to another.

A contractor operating pickups and trailers has different exposures from a retailer making deliveries, a professional organization using passenger vehicles, or a company operating multiple service vans.

When reviewing commercial auto insurance, consider:

• vehicle type
• vehicle ownership
• vehicle value
• attached equipment
• trailers
• radius of operation
• number of vehicles
• number of drivers
• how frequently vehicles are used
• what the vehicles carry
• whether they cross state lines

These details can affect the type of policy and coverage a business should consider.

Businesses With Federal Motor Carrier Requirements

Some businesses operating commercial motor vehicles are subject to requirements beyond ordinary state auto-insurance rules.

For example, certain interstate for-hire motor carriers must maintain federal financial-responsibility limits based on the type and weight of the vehicle and the type of cargo being transported. FMCSA requirements can be substantially higher than Indiana's ordinary minimum automobile limits.

These requirements do not apply to every business using a commercial vehicle.

If your operation is subject to USDOT or FMCSA requirements, transports passengers or regulated cargo, or operates under federal motor-carrier authority, that should be identified when your insurance is being arranged.

How Much Commercial Auto Liability Coverage Does a Business Need?

There is no single liability limit appropriate for every company.

Factors to consider can include:

• the size and type of vehicles
• frequency of use
• number of drivers
• where the vehicles operate
• passenger exposure
• contractual requirements
• business assets
• the potential severity of an accident
• whether customers or general contractors require particular limits

State minimum limits establish a legal floor, but a business should consider the financial exposure created by its actual operations.

Commercial umbrella coverage may also be appropriate for some businesses when additional liability limits are needed above underlying policies.

Commercial Auto and Your Overall Insurance Program

Commercial auto insurance is usually only one part of a business insurance program.

Depending on the company's operations, other important protection may include:

• Commercial Property Insurance
• General Liability Insurance
• Bonding
• equipment or inland marine coverage
• umbrella liability
• other specialized business coverage

Review Your Coverage as the Business Changes

Commercial auto insurance should be reviewed as the company evolves.

A review can be especially useful when you:

• purchase or sell a business vehicle
• add a driver
• hire employees who will drive
• begin using employee-owned vehicles
• add trailers or specialized equipment
• expand your service area
• begin interstate operations
• change what vehicles transport
• add locations
• acquire another company
• increase the size of your fleet

Keeping vehicle and driver information current helps ensure that the policy reflects the business's actual operations.

Flexible Payment Options

Crapo Insurance currently offers several payment arrangements depending upon the insurance company and policy, including:

• Monthly
• Quarterly
• Semi-annual
• Annual

Available payment methods may include debit card, credit card, electronic check, or check by phone, depending upon the insurer and policy.

Commercial Auto Coverage for Different Driving Histories

A driver with a ticket or accident does not necessarily mean a business should stop looking for insurance options.

Crapo Insurance works with commercial customers with different driving histories, including drivers with accidents, tickets, DUI histories, and clean records.

Eligibility, available coverage, and pricing depend upon the insurance carrier and individual circumstances, but an independent agency can help compare available markets.

Talk With a Local Independent Agent

If your Terre Haute or Wabash Valley business owns or uses vehicles, Crapo Insurance Agency can help you review how those vehicles are used, who drives them, and what coverage options may be available.