Business vehicle insurances are supposed to protect your assets and your business in case an accident happens. It doesn’t matter if you’re just a small business enterprise managing a single vehicle or a large company that manages an entire fleet. If you’re thinking of cutting off on vehicle insurance as a form of smart vehicle funding solution, think again. Not having adequate vehicle insurance may be putting your business at risk.
But how important are business vehicle insurance anyway? And how do you know that you need it? You definitely need a business vehicle insurance if your vehicle:
has commercial tags
is solely used for business purposes
is used by your employees to do business
The Dangers of Inadequate Vehicle Insurance
There is always a price to pay for quality. It is everyone’s objective to save money which leads to the decision of choosing the cheapest vehicle insurance company for your vehicle fleet. However, this may not be the best option for you to do. Why? It’s because of these dangers.
#1: You could be violating the law.
Vehicle insurance companies have different policies. These policies should be according to state laws as well. Picking a business vehicle insurance company which do not follow the state’s requirement can make you liable for actually violating the law.
#2: Your investments can be at risk
Expert fleet management is supposed to help your business. But more than that, it can be a form of sure investment too. Vehicles are not cheap and damages are often expensive to repair or worse, to replace with a new vehicle. In case of an accident, your insurance company will reimburse you for any damaged sustained caused by you or any of your employees driving the vehicle. You’d surely lose your investment with cheap insurance policies because being “uninsured” or “under insured” will leave you with no insurance relief after all for a damaged vehicle.
#3: Your assets can be at risk
Remember that the less business insurance coverage your vehicle has, the more your business becomes liable when there is an accident. It’s not only your investments you’re putting at risk with inadequate vehicle insurance. You’re putting your assets in jeopardy too. A damaged vehicle requires repair. How much more an injured person? You’ll not only be paying for car damages, you’d be liable to pay for medical bills too. Worse, your business can be sued for having careless drivers. This involves expensive costs due to legal fees like paying for an attorney. In the end, your business might be forced to file for bankruptcy.
To avoid these dangers, it is better that you pick a trusted and quality insurance company to insure your business fleet. While adequate business vehicle insurance policies are important, you should also be aware that successfully managing a fleet entails covering the most important areas of fleet management.
Call us today at ALD Automotive at 087000 111 81 and we will help you find the best vehicle funding solutions for your fleet.