Accidents occurring in company-driven vehicles can be complex to manage. Businesses with employees who drive trucks or other vehicles need comprehensive business insurance. This includes commercial auto insurance. It also may include workers compensation insurance.
Your agent can provide specific guidelines on how much coverage you need. He or she will also guide you on how much is necessary. Here's a look at a few key factors.
Here's an Example
Your employee is out on a business run. He collides into another driver. The employee is negligent in this situation. The other driver sustains head injuries. The employee suffers a broken arm. Both people are unable to work for an extended period of time. They may need long-term care. Both head to the hospital. Who handles the costs?
As the business owner, you may be responsible for the other driver's medical bills and property loss. You are likely responsible for lost time at work and the employee's injuries as well. However, if you have adequate business insurance, you can get the proper protection. Here's what will happen.
To clarify, commercial auto liability insurance pays for third-party claims against the company. In this example, it should pay for claims from the other driver. It may cover the other driver's injuries, lost time at work, property damage and other losses. This may also include providing legal defense to support your business in a court of law. However, it does not pay for your own driver's losses.
Workers' Compensation Insurance
Your workers' compensation insurance should apply when an employee receives work-related injuries while driving your vehicle. Workers' comp should pay for your employee's losses. This includes your employee's medical bills. It often also includes lost time at work, compensation for recovery and rehabilitation. It may include out-of-pocket expenses. Workers' compensation usually does not pay pain and suffering.
What Coverage Do You Need?
Business insurance can include both commercial auto liability and workers' compensation insurance. Having one does not mean you do not need the other. Your insurance agent can often provide clarification on the coverage you need. He or she will talk about the type of coverage necessary in your situation.
Your business insurance needs change over time. Workers' compensation insurance is an important investment in all cases. This is especially true in driver-based situations. Without the right coverage, your company may have to pay out of pocket to cover each of these likely large costs.
Need business insurance? Call Knight-Dik Insurance Agency, Inc. at 800-286-6353. We will help you get a fast, free quote on an affordable policy.
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