When you run a business, it can be all too easy to forget about the most important asset your company has: your fleet. Whether it's a delivery truck that brings goods to customers or a vehicle for employees, your fleet is vital to ensuring that everyone has what they need when they need it.
However, when disaster strikes and something happens to one of these vehicles, it can cost you thousands of dollars in repairs and more if you don't have commercial vehicle insurance in place beforehand. Here's why protecting your fleet with commercial vehicle insurance is so important:
Commercial Vehicle Insurance
Commercial vehicle insurance for business is a specialized type of policy that covers the costs of repairing or replacing your commercial vehicles if they're damaged by fire, theft, or accident. This type of insurance differs from personal auto coverage in that it offers additional protection against liability claims and has higher deductibles (the amount you must pay out-of-pocket before the insurance company will reimburse you).
Commercial vehicle policies can also be divided into two categories: straight liability coverage and full coverage. Straight liability policies contain basic protection against third-party claims while full coverage provides protection against all types of losses--from damage to people who are injured on board to cargo loss due to theft or other reasons.
Business Owners Policy
A business owners policy (BOP) is a commercial vehicle insurance that covers both your business and its employees. This type of insurance will protect you from liability claims, damages to property, injury or death due to negligence on the part of an employee, and more.
It also provides coverage for any accidents involving vehicles used by your employees for business purposes.
A BOP can help protect both you and your customers by covering them in case of an accident caused by one of your drivers who is at fault. This can be especially important if the driver happens to be uninsured or underinsured--which happens quite often in today's world!
Loss of Use Coverage
Loss of use coverage is a form of insurance that covers the costs associated with the temporary loss of use of a vehicle due to an accident or theft. Loss of use coverage can be purchased as a separate policy, or it may be included in your business auto policy and subject to deductibles.
To understand why loss of use insurance is important for businesses, consider the following example: A delivery driver hits another car while making deliveries on behalf of your company. The other driver doesn't have enough liability coverage; therefore, you'll need to pay for his repairs out-of-pocket until he pays off his debt (assuming he does). But what about your business? How will this impact its operations?
Perhaps you need that delivery van back on the road immediately so that you can continue making deliveries--but maybe not quite yet because there are still some repairs left before it's safe enough for regular driving conditions again (like replacing damaged tires).
In this case, having access to loss-of-use coverage would help offset some costs associated with keeping this vehicle off the road until repairs are completed safely so that no one gets hurt again!
Conclusion
We hope that this article has been helpful in understanding the importance of Commercial Vehicle Insurance Nz for businesses. If you have any questions or would like to speak with a specialist about your business needs, please contact an expert now.
