Myth 4: Your employees are covered when they drive your business vehicles.
Fact: Some vehicle insurance companies will only extend coverage to drivers who are specifically named on the policy. Make sure your insurer allows “permissive use,” which means that all of your drivers are covered as long as they have your permission to operate the vehicle. Check your policy carefully – Don’t Assume.
Your vehicles are the backbone that keeps your business up and running. But when it comes to the insurance for those vehicles, there may be some misconceptions floating around out there. For example, you might have been told that it’s okay to cancel your vehicle insurance in the off-season, or that all of your drivers are automatically covered by your policy. To help you get to the facts about commercial auto insurance, we’ve collected some of the more widely-held misconceptions and uncovered the truth about them–along with some tips on how to make sure you have the right coverages for your business: Check back each day to learn all 7 Myths.
- Myth: It’s cheaper to cancel your insurance if you have a seasonal business.
Fact: Not necessarily. If you cancel your insurance policy, your stored vehicles won’t be protected. A Comprehensive-only policy provides coverage for a business that doesn’t need liability coverage during certain months, but needs basic protection against incidents, such as vandalism, theft, falling tree branches, hail, etc. This is ideal for vehicles that sit for long periods during off-season.
Plus, a Comprehensive-only policy provides continuous insurance which may save you money in the long-run. If you drop your insurance completely, you may pay significantly more to purchase a new policy when your peak season rolls around because most insurance companies ask for proof of continuous coverage to get you the best rate.