Investing in the correct commercial auto insurance in Florida protects your business from financial loss

Key takeaways:

  • Your personal auto insurance policy won’t cover you when driving for company business.
  • You could be held financially accountable if there’s an accident with a company vehicle. 
  • A commercial auto insurance policy protects you and your business.
  • Finding the best policy to meet your needs could save your company from significant losses.

Small business owners often use their personal vehicles to conduct business. After all, they’re not traveling far and they don’t use these cars for daily business, so it’s far more convenient to just have a personal auto insurance policy.

This scenario is common, but it could leave you without coverage if there’s an accident. If you find yourself in this situation, you could be financially responsible for repairs, legal costs, and other expenses related to the accident, putting you and your company in peril. 

Many small businesses can’t take on these extra expenses, which brings trouble to the entire organization. The solution is to invest in commercial auto insurance if you’re a Florida business owner before an accident occurs.

Commercial auto insurance provides your business with additional protections and avoids big financial risks. Here’s a look at how commercial auto insurance works in Florida and whether it’s necessary for your company.

Commercial auto insurance explained

Commercial auto insurance applies to all vehicles your company owns or uses to conduct business. It will cover cars you use to deliver items to customers, fleets your employees drive to provide service, or vehicles you take to business meetings. 

Your policy will typically cover multiple drivers using the same vehicle and provide coverage based on the demands the job places on the car. For instance, a chauffeur service would have different insurance needs than a paper company that rarely requires the use of company vehicles. 

A commercial insurance policy protects a company against liability claims and damage to vehicles while on the road, ensuring you and your company don’t end up with significant expenses in the aftermath. These policies might cost more than a personal policy, but they also offer greater coverage.

In short, you need commercial auto insurance if you or your employees use company or personal vehicles for work purposes. Your personal auto policy won’t cover this. 

A look at Florida’s laws

Every state is different when it comes to commercial auto insurance. When examining insurance policies in Florida, you should begin by looking at the minimum coverage amounts defined by state law. 

Because Florida is a no-fault state, the minimum coverage amounts are relatively low. You must have $10,000 in Personal Injury Protection (PIP) and $10,000 in Property Damage Liability (PDL) insurance in the state, but those numbers can increase based on the vehicles in your fleet. 

For instance, commercial trucks weighing between 26,000 and 35,000 pounds require $50,000 of liability insurance coverage. At the same time, vehicles weighing between 35,000 and 44,000 pounds need $100,000 of coverage, and anything over 44,000 pounds requires $300,000. It’s also worth noting that if you only have the base insurance coverage and there’s an accident involving a company vehicle, you could be on the hook for any additional medical bills, lost wages, damages, and death benefits to the other party.

Speak with your insurance agent to determine the right policy to meet your company’s needs. Additional coverage options that assist with medical payments, comprehensive, collision, gap coverage, and non-owned auto are available. Non-owned auto could be particularly beneficial for your company because it protects employees when they drive their personal vehicles for company business.

What commercial auto insurance in Florida covers

Basic commercial auto insurance typically covers four things: liability damage, physical damage, medical expenses, and uninsured motorist negligence. Liability and physical damage include multiple sub-categories.

First, there are two types of liability coverage: bodily injury and property damage. Bodily injury insurance covers all accident-related injuries to other people when the driver of your company vehicle is at fault. Since Florida is a no-fault state, this amount only applies when damages are more than $10,000.

Property damage coverage protects you from paying for damage to another person’s vehicle or property when your car’s driver is at fault. Once again, you only require additional coverage for damage over $10,000.

Physical damage includes both collision loss and comprehensive loss. Collision loss applies to damage to your vehicle during the accident, while comprehensive loss applies to theft, weather-related damage, and non-collision issues.

Medical expense insurance covers treatment of injuries suffered by the occupants of your commercial vehicles. In contrast, uninsured motorist insurance offers additional coverage if you’re in an accident with another car that doesn’t have an adequate policy.

Your insurance agent will help you determine which policy is right for your business. Reach out for personalized recommendations. 

Is this insurance necessary?

In short, yes, your business needs commercial auto insurance if you use vehicles in any form for business. You’ll want liability insurance at the very least to protect your company from legal retribution and the expenses that go along with it.

Investing in commercial coverage is advisable if any member of your team will use their personal vehicle for work-related tasks, as well. For example, if you send staff members on sales calls or to deliver documents to clients, they should have commercial insurance. 

It’s even a good idea to invest in additional commercial insurance if an employee goes through the drive-thru to grab coffee for the office on company time because you don’t want to end up on the hook for accident-related expenses. You could need additional coverage, too, if any part of your business is reliant on vehicles for certain functions.

Getting the policy you need

A commercial auto insurance policy in Florida protects your company when it uses vehicles for any organizational job. This policy prevents the business owner or company from holding the bag after an accident and can save the firm from substantial costs if the unforeseen occurs.

Avante Insurance is a family-run insurance agency in South Florida. We will advise you on your commercial auto insurance needs, ensuring you have the ideal policy to protect your business. Contact Avante Insurance today to learn more about our commercial auto insurance policies.

Disclaimer: This blog and website are made available by the publisher for educational and informational purposes only. It is not to be used as a substitute for competent insurance, legal, or tax advice from a licensed professional in your state.