Being a mechanical contractor comes with more than its fair share of risks. Whether you squeeze into small uncomfortable spaces, crawl into pipes, or climb up to high, exposed locations, each job site presents its own dangers. 

Along with those risks come a number of potential liabilities. For small businesses in the mechanical contracting space, getting the right types of insurance coverage is key to protecting your business from financial and reputational harm in the event of an unfortunate circumstance.

Some of the most common types of accidents and injuries that people working in mechanical contracting experience include: 

• • Repetitive stress injuries
  • Slips, trips, and falls
  • Being struck by an object 

The good news is that mechanical contractor businesses can often use their workers’ compensation and general liability insurance policies to cover claims from these common industry hazards.

But what if you or an employee of your mechanical contracting business are involved in an incident on the road between jobs? How do you protect yourself and your small business from auto claims? The best way to protect your assets is by adding commercial auto insurance into the mix of your small business insurance policies.

Why do mechanical contractors need a commercial auto insurance policy?

As a contractor, your work takes place at various locations. You and your employees may have to drive short or long distances to serve clients in different parts of your city, state, or beyond. It’s also common to drive between multiple job sites in one day. For all that time spent on the road, your (or your employee’s) personal auto insurance isn’t enough. This is why mechanical contractors need commercial auto insurance. 

What does commercial auto insurance cover? 

Commercial auto insurance covers collision or damage to any vehicles you and your employees drive for work, whether or not the company owns, leases, or borrows them. It also can include coverage for medical bills, vehicle servicing, repairs to your property, and legal fees. While you shouldn’t count on your personal auto insurance policy to cover your business-owned and operated vehicles, a commercial policy can cover personally-owned vehicles used for work purposes. 

Am I required by law to have commercial auto insurance coverage? 

Legally, you must carry commercial auto insurance for any business-owned, hired, or leased vehicles in all states except Virginia and New Hampshire. Whether or not commercial auto insurance is required in your state, your business will be liable if your vehicle is involved in an accident. Federal law requires commercial auto insurance if you cross state lines for your business.

How much commercial auto insurance does a mechanical contractor need? 

The amount of coverage your business needs depends on a variety of factors. How many vehicles your mechanical contracting company uses commercially, how far each vehicle is driven each day, and where each vehicle is stored all play into your coverage needs. 

Risk factors for coverage are also specific to where your mechanical contracting business operates. Geographically speaking, there are different risks in different parts of the U.S. Each state that requires commercial auto insurance will have a minimum level of required coverage, and these minimums are influenced by how far you travel, the size of your vehicles, how many you own, as well as state requirements. 

The bottom line is if you’re a mechanical contractor who owns, hires, or leases vehicles, or you have commercial license plates or registration on your vehicles, you need to add commercial auto to your insurance coverage.

What coverage benefits does commercial auto insurance provide for mechanical contractors?

You have a choice of coverage options with commercial insurance just like you do with personal auto coverage. Only a licensed insurance agent or an insurance provider can tell you the exact options that apply to your situation (along with your state’s minimum requirements). But generally speaking, you may choose to add: 

• • Auto liability: This part of your commercial auto policy protects you and your company from out-of-pocket legal expenses after an accident in a work vehicle if a driver chooses to sue your business.
  • Collision: This aspect covers costs related to the repair and replacement of the vehicles damaged in an accident. It also covers other costs linked with your vehicle hitting, or being hit by, another vehicle.
  • Comprehensive insurance: This part of a commercial auto policy covers weather-related damage, vandalism, and other damage to your vehicle not caused by a collision with another vehicle. 
  • Medical payments or personal injury: This coverage pays medical expenses of parties injured within your vehicle, or by your vehicle, during an accident.
  • Uninsured or underinsured motorist coverage: This important part of your commercial auto insurance protects you and your business from financial losses including medical costs and vehicle repairs after an accident if the at-fault driver has insufficient or no auto insurance coverage. 

Just like your personal auto insurance policy, other customization options include: towing, roadside assistance, rental reimbursement, and more. 

The importance of commercial auto insurance for mechanical contractors 

Mechanical contractors don’t work in offices all day. Your company vehicle may serve as your “office” so it’s vital to protect it. Not only is commercial auto insurance required by law in most states, but it’s also an important piece of coverage to keep your business financially sound if something goes wrong. 

Need commercial auto insurance coverage?

Accidents happen, even to the most careful drivers. Whether someone else is driving distracted or having a medical emergency, sometimes you’re the one who ends up paying the price.

Commercial auto insurance can help you keep your mechanical contractor business up and running in the event of an auto accident. See how Pie can help!

The post Commercial auto and your industry: mechanical contractors appeared first on Pie Insurance.

Running a business is an exciting adventure filled with a million decisions. No two entrepreneurs have the same journey, and no two businesses have the same strategies. However, one element that every company should consider is the insurance they use to protect the organization. 

While more specialized coverages such as cyber risk insurance and errors & omissions apply to certain industries, there are other plans like general liability insurance that every business can benefit from. 

The following sections will provide an overview of the importance of general liability insurance and offer insight into which small businesses can benefit from the coverage. 

What is general liability insurance?

General liability insurance is often seen as the minimum level of insurance that all businesses should carry. With this coverage, business owners have a protective barrier when a lawsuit is brought against the company. With general liability coverage, medical expenses, attorney fees, court fees, and settlement money are covered. 

The policy also covers the following items:

• • Property damage
  • Bodily injuries
  • Advertising/personal injuries

Property damage

One of the main coverages of general liability insurance is property damage. Although the policy won’t cover you in every instance, there are several scenarios where costs associated with property damage are covered. 

For instance, damages a customer or client receives on your business property are typically covered. So, your policy could cover the expenses if you currently own a hardware store and one of your employees damages a vehicle while loading material. The insurance will also cover damages at a client or customer’s home. 

Bodily injuries

Bodily injury claims are often one of the most common lawsuits against a business. These situations occur when a customer is visiting your place of business and is injured. Since bodily injuries can range from a person slipping and falling to an item falling off a shelf and hitting the customer, it’s important to have the appropriate coverage. 

Both examples listed above would typically be covered by the company’s general liability insurance policy. 

Advertising injuries

Generally, advertising injuries aren’t a result of malicious intent. Instead, these lawsuits often arise when a business releases marketing materials that paint another company or person in a negative light or make false claims against an organization or individual. In either case, the general liability coverage will help pay for the legal costs associated with the advertising injury.

Who needs general liability insurance?

With how many components of coverage general liability insurance offers, every business, regardless of industry, should strongly consider purchasing a policy. Not only does it provide an additional layer of protection for your customers, but it also helps reassure your employees that you have their back should anything happen. 

There are also some industries, such as construction, where clients will require your business to have minimum coverage, including a general liability insurance policy. 

The importance of general liability insurance

Many assume that the most important steps to running a successful business are setting up marketing or creating operational processes. While both components are crucial for success, having the proper small business insurance will ensure that your organization can weather any storm it faces. 

General liability insurance is great for starting your insurance product lineup. It will provide your company with many of the most important coverages your business will need to keep customers and employees safe. 

Thanks for reading! Please note that this content is intended for educational purposes only. As best practices change regularly, you should refer to your trusted advisor for specific counsel. If you’re a small business owner, learn more about workplace safety or check your workers’ comp rate in 3 minutes.

The post Does your business need general liability insurance? appeared first on Pie Insurance.

Running a successful general contracting business requires a great deal of travel. Whether it’s traveling to and from different job sites, picking up materials, or delivering supplies, you rely on a work van or truck to keep your business, quite literally, moving.

But what happens when you or one of your employees is involved in an accident while driving a work vehicle? Or tools and equipment are stolen from it? Whether or not you’re at fault, the result could be costly. It has the potential to set you back financially, or even put you out of business.

To keep your general contracting business covered on the road and help your business get back up and running after an accident, you’ll need a commercial auto insurance policy. General liability insurance and workers’ compensation insurance will protect you and your staff in case of accidents or injuries that occur on the job, but what about all the travel time in between?

Read on to learn more about commercial auto insurance for contractors, what’s covered, and why your business needs it.

What do general contractors need to know about commercial auto insurance?

Commercial auto insurance provides coverage for your business’s commercial vehicles in case of an accident or collision. This includes coverage for multiple employees who may be responsible for driving work vehicles.

Unlike personal auto insurance, commercial auto insurance provides extra coverage for your business in instances such as someone other than the vehicle owner driving the vehicle. Your commercial auto insurance will cover expensive repairs and medical bills, as well as the cost to repair or replace expensive tools or equipment that may have been damaged.

Is commercial auto insurance required by law?

For most states, except for New Hampshire and Virginia, commercial auto insurance is required by law. However, regardless of whether your state requires commercial auto insurance, all states require some form of personal auto insurance coverage to protect you and others on the road in the event of a collision.

If your business owns or leases a vehicle, or if your vehicle has a commercial license plate, registration, or tag, you’ll need coverage.

What does commercial auto insurance cover for general contractors?

In the event you or your crew get into a collision when driving to or from the worksite, you can rely on your auto insurance to cover the costs of vehicle and/or property damages, medical bills, lawsuits, and more. What your auto insurance covers will depend on your policy. Your commercial auto coverage may include:

• • • Collision to cover any costs associated with your work vehicle being hit by, or hitting, another vehicle. This includes the cost to repair or replace the damaged vehicles involved in the accident or collision.
    • Comprehensive to cover any damages that may occur without an accident ensuing. For example, vandalism or weather-related damages.
    • Auto liability to protect you and your company’s assets should another driver sue your business after an accident with a work vehicle.
    • Personal injury or medical payments to cover any medical expenses should the occupants of a work vehicle be injured in an accident.
    • Uninsured or underinsured to cover repair or medical costs after an accident if a driver doesn’t have personal auto insurance or insufficient coverage.

You can also customize your insurance policy to include additional coverage such as:

• • • Roadside assistance to cover assistance for dead batteries, flat tires, or lock outs.
    • Rental reimbursement to cover the cost of a rental vehicle to keep your business moving after an accident or collision occurs.
    • New vehicle replacement cost to help pay for a new vehicle should your work vehicle be totaled in an accident.
    • Expanded towing for towing coverage beyond what your existing commercial auto policy provides.

For commercial builders or general contractors who specialize in new construction, your insurance policy can also cover specialized vehicles or equipment that may be damaged in an accident. For example, if a work vehicle is totaled and the supplies it was carrying can no longer be used, your commercial auto insurance will cover the cost to replace these materials.

What happens if you don’t have auto insurance?

Adding commercial vehicles into the mix only increases the potential or risk for employees and liability for your general contracting business.

As a business owner, if you don’t have commercial auto insurance and a vehicle that you own or lease is involved in an accident, you may be liable to pay damages out of pocket. Even the smallest fender bender can be financially crippling to a small business without the right insurance policy in place.

Not covered yet?

Operating a vehicle for your business comes with risks. Even the safest driver can find themselves in circumstances out of their control, and no one wants to be stuck paying the cost of repairs out of their own pocket.

Luckily, commercial auto insurance can help you avoid expensive repairs and keep your general contracting business running smoothly. Think you may need a policy? Pie can help with that!

Thanks for reading! Please note that this content is intended for educational purposes only. As best practices change regularly, you should refer to your trusted advisor for specific counsel. If you’re a small business owner, learn more about workplace safety or check your workers’ comp rate in 3 minutes.

The post Commercial auto insurance: general contractors appeared first on Pie Insurance.

Tennessee is the home of stunning views, vibrant music, tasty food, and rich history of hard-working citizens. The labor-driven population of Tennessee even helped coin the state’s nickname: “The Volunteer State.” This history of hard work carries on today in the nearly 640,000 small businesses which continue to add to the state of Tennessee’s growing economy.

Many small businesses transport goods and services to their customers, and they couldn’t do it without the help of commercial vehicles. To protect against costly liabilities resulting from collisions, physical damage, medical expenses, and other damage sustained by potentially negligent drivers, any small business owner with one or more commercial vehicles must carry commercial auto insurance.

Other varieties of small business insurance policies exist to ensure owners are covered in most business-related cases. Still, only commercial auto insurance protects small businesses from liability and physical damage in the event of an accident involving a company vehicle. Types of company vehicles include but are not limited to cargo vans, food trucks, limos, taxis, heavy trucks, tow trucks, and contractor vehicles. It’s important to note that carrying a commercial license plate is a prerequisite for commercial vehicle classification in the state of Tennessee.

Seven facts about Tennessee commercial auto insurance

We’ve compiled a list of seven important points about Tennessee’s commercial auto insurance to help your small business understand the coverage it needs.

• • The state of Tennessee requires all small businesses that use a vehicle, or multiple vehicles, for business purposes to carry a commercial auto insurance policy.
  • The Financial Responsibility Law of Tennessee requires every driver to be financially responsible in the event of an accident. The best way to know your small business is covered is to obtain commercial auto insurance, as personal auto policies typically exclude coverage for any commercial use.
  • There are only a few exceptions to the Financial Responsibility Law of Tennessee. Two instances that could qualify a small business owner to be exempt from the state law are (1) if the owner no longer owns the vehicle or (2) if the owner’s vehicle is stored or inoperable.
  • Small businesses that fail to obtain commercial auto insurance or another means of financial responsibility can face fines or lose the right to drive their commercial vehicle.
  • Tennessee requires a minimum liability coverage split of 25/50/15. This means, in Tennessee, your commercial auto insurance must cover a minimum of:
    • $25,000 for each injury or death per accident,
    • $50,000 for total injuries or deaths per accident,
    • and $15,000 for property damage per accident.
  • Vehicles over 10,000 pounds need to carry additional coverage, especially if the vehicles are being used to transport hazardous materials.
  • Many commercial vehicles will need a USDOT Number, especially when over 10,000 pounds, transporting passengers for money, and crossing over state lines. 

While commercial auto insurance is required by law in all states except New Hampshire and Virginia, it’s still important to evaluate how much liability coverage is right for your small business. State minimum coverages can and do vary, and your business may need more than the minimum to truly cover your potential liabilities. Commercial auto insurance laws are also subject to change so stay up to date on your research and consult a trusted advisor, such as a licensed insurance agent. 

Please note that this content is intended for educational purposes only. As laws change regularly, refer to your state legislation and/or an advisor for specific legal counsel. If you’re a small business owner interested in knowing more about commercial auto insurance check out our resources to learn more about the basics of commercial auto insurance or get a quote from Pie.

The post Commercial auto insurance in Tennessee appeared first on Pie Insurance.

The Land of Lincoln is known for its soaring skyscrapers, renowned museums, and thriving economy. In fact, Illinois boasts around 2.5 million small businesses which employ approximately 45% of the state’s workforce. Many of these small businesses transport goods and services to customers, and when they do, they rely on commercial vehicles to do it.

In an effort to protect themselves against costly liabilities, small businesses that own and operate commercial vehicles need to acquire commercial auto insurance. Commercial auto insurance ensures the business is covered in the event of an accident, collision, or other damage. Just as other varieties of liability coverage exist to help protect your small business from financial losses, commercial auto insurance helps small business owners with expenses resulting from commercial vehicle accidents and damage.

There’s a lot of liability risk when it comes to owning and operating one or more commercial vehicles. Commercial auto insurance can help protect small business owners from physical damage, collisions, medical expenses, and other harm resulting from vehicle accidents. At the very least, small business owners will need a commercial auto policy that meets Illinois’ minimum requirements, but it may be beneficial to explore additional coverage options depending on the unique needs of the small business.

Five facts about Illinois commercial auto insurance

To help small businesses owners better protect themselves and their business, we’ve compiled a list of five important things to know about Illinois commercial auto liability coverage.

• • All commercial vehicles in Illinois are required to carry minimum liability coverage.
  • Illinois outlines a 25/50/20 split limit coverage.
    • $25,000 for injury or death of a person in an accident,
    • $50,000 for injury or death of more than one person in an accident,
    • and $20,000 for damaging the property of another person.
  • Failure to obtain minimum liability coverage in Illinois could result in a $500 fine. Making the decision to drive a commercial vehicle with a suspended registration could result in a $1,000 fine.
  • Many commercial vehicles will need a USDOT Number, especially when over 10,000 pounds, transporting passengers for money, and crossing over state lines. 
  • Vehicles heavier than 10,000 pounds generally require a higher level of coverage, especially if the vehicles are transporting hazardous materials.

While commercial auto insurance is required in nearly every state of the U.S. (excluding Virginia and New Hampshire) it’s still important to assess how much liability coverage is right to protect your small business and the vehicles it owns in the state of Illinois.

Remember each state’s commercial auto requirements vary and are subject to change, so it’s vital to do your research and speak to a trusted advisor.

Please note that this content is intended for educational purposes only. As laws change regularly, refer to your state legislation and/or an advisor for specific legal counsel. If you’re a small business owner looking for more information about commercial auto insurance you can learn more about the basics of commercial auto insurance or get a quote from Pie. 

The post Commercial auto insurance in Illinois appeared first on Pie Insurance.

It may surprise you to learn that janitorial workers face a high risk of workplace-related illness and injuries. Cleaning staff and sanitation specialists are exposed to a wide variety of physical and chemical hazards every day, from the job they perform and the cleaning supplies they use. From slips on wet surfaces to the hazards of operating heavy machinery, running a janitorial service business is riddled with liability for small business owners.

In a recent study from the American Journal of Industrial Medicine, a survey of 620 janitors in Washington (state) revealed that 20% endured a work-related injury or illness within the past 12 months. That’s one in five who’ve reported injuries like:

• • Sprains
  • Strains
  • Irritation to eyes and skin
  • Breathing problems caused by the repetitive motions, equipment, or chemical usage on the job

General liability insurance and workers’ compensation insurance will protect you and your janitorial staff in case of accidents or injuries that occur on the job, but what about all the travel time in between? How do you make sure you’re covered for any accidents or collisions that occur on the road?

Whether you’re a residential cleaning company that uses employee vehicles to travel to jobs, or a commercial janitorial service that uses company leased vehicles to deliver cleaning supplies or equipment to a job site, you’ll want to add commercial auto insurance to your insurance policy.

Read on to learn what commercial auto insurance is, what it covers, and why you should add it to your small business insurance policy.

What do small business owners need to know about commercial auto insurance for janitorial services?

Commercial auto insurance covers any business-owned or operated vehicles in the event they’re damaged or involved in a collision. It provides coverage for vehicle servicing, property repair, medical bills, and even legal fees.

In many instances, your personal auto insurance policy won’t cover vehicles owned and operated by your business. However, depending on the policy, your commercial auto insurance may also cover your personal vehicles.

For residential and commercial janitorial services who travel to and from multiple work sites in a single day, or who require work vehicles to transport cleaning supplies and equipment to the job site, commercial auto insurance keeps your business covered while on the road.

Is commercial auto insurance required by law?

By state laws, your business is required to carry commercial auto insurance for company-owned, leased, or hired vehicles in every state except New Hampshire and Virginia. However, regardless of whether commercial auto insurance is required by your state, if your company vehicle is involved in an accident or collision, your business will be held liable for damages.

The required minimum coverage will depend on your specific state requirements. It also depends on the number and size of vehicles, how far you travel, and any risk factors specific to your geographic location.

If your work vehicle has a commercial license plate or registration, or if your janitorial service owns, leases, or hires vehicles, you’ll need to get commercial auto coverage.

What does commercial auto insurance cover for janitorial services?

Much like your personal auto insurance policy, your commercial coverage will depend on the type you choose. Speak to your insurance provider to discuss which coverage options are best suited for the needs of your janitorial business. 

Coverage options may include:

• • Collision to cover any costs associated with your work vehicle being hit by, or hitting, another vehicle. This includes the cost to repair or replace the damaged vehicles involved in the accident or collision.
  • Comprehensive to cover any damages that may occur without an accident ensuing. For example, vandalism or weather-related damages.
  • Auto liability to protect you and your company’s assets should another driver sue your business after an accident with a work vehicle.
  • Personal injury or medical payments to cover any medical expenses should the occupants of a work vehicle be injured in an accident.
  • Uninsured or underinsured to cover repair or medical costs after an accident if a driver doesn’t have personal auto insurance or insufficient coverage.

You can also customize your policy to include additional coverage for roadside assistance, rental reimbursement, expanded towing, and more.

The amount of coverage you need will depend on a variety of factors, such as the number of work vehicles you have on the road and how you’re using those vehicles on a daily basis.

Why janitorial services need commercial auto insurance

Your janitorial service relies on commercial vehicles to get to a job site, move equipment, and transport the cleaning supplies needed to get the job done. Investing in commercial auto insurance saves you from paying big bucks out of pocket if your employees are involved in a car accident while working.

If you’re not covered by commercial auto insurance, the costs associated with even the smallest fender bender can cripple your business.

Not covered yet?

Operating a vehicle for your business comes with risks. Even the safest driver can find themselves in circumstances out of their control, and no one wants to be stuck paying the cost of repairs out of their own pocket.

Luckily, commercial auto insurance can help you avoid expensive repairs and keep your janitorial service running smoothly. Think you may need a policy? Pie can help with that!

The post Commercial auto insurance: janitorial services appeared first on Pie Insurance.

Driving is often a requirement for many occupations, including those working in transportation, delivery, and sales. While being on the road is seen as a positive for many workers, the truth is that it comes with inherent risks. Workers who drive more than the typical commute to and from the workplace have a higher chance of being in an accident.

As a small business owner, it’s impossible to prevent a motor vehicle accident from occurring. However, having the proper insurance in place can help protect your employees and company should an incident occur.

A commercial auto insurance plan is often the best option for organizations where staff either operate a company vehicle or drive their vehicle for work. With this type of coverage, damages to the vehicle are normally covered.

Let’s take a closer look at commercial auto coverage and how it can benefit your company.

What is commercial auto insurance?

A commercial auto insurance policy is a type of coverage that protects vehicles used for organizational purposes. While most people instantly think of large company vehicles like semi trucks and transportation vans, even personal vehicles that employees use fit under the policy.

If an employee were to have an accident while driving a company vehicle, the commercial auto policy would cover items such as property damage and injuries resulting from the crash.

What coverages fall under a commercial auto insurance policy?

While the policy limits may vary slightly depending on where you purchase your commercial auto insurance, most will offer the same protection.

These coverages include:

• Liability coverage
• Collision coverage
• Medical expenses for anyone injured in the accident
• Uninsured or underinsured coverage
• Property damage coverage

Does your company need commercial auto insurance?

If your company requires employees to drive a company vehicle or their car as part of the job, you’ll need commercial auto insurance. Without the coverage, you’re opening your company up to potential financial liabilities.

3 factors to consider when purchasing commercial auto insurance

Now that you understand how commercial auto insurance can protect your company and employees let’s look at a few factors to consider when purchasing coverage.

Understand the risks associated with your business

Depending on the type of business you currently own, employees could face more risks that make them more likely to have a car accident. For example, truck drivers and other transportation workers that drive long hours or during unconventional times of the day are more likely to drive while tired.

Encouraging your drivers to take frequent breaks and pull over when necessary is important for reducing the risks of accidents on the road.

Selecting the right amount of coverage

It can be tempting to select the policy with the lowest payment. However, doing so can leave your business vulnerable during an accident. Consider purchasing a commercial auto insurance policy with higher limits to help avoid the risk of needing to pay-out-of pocket if there is extreme damage to the vehicle, or a person is severely injured.

Proactively reduce expenses by promoting a culture focused on safety

As mentioned earlier, it’s impossible to prevent all vehicle accidents from happening. However, by promoting a culture focused on safety, you can help keep your employees safe while driving.

Here are a few ways you can help your team stay safe when behind the wheel:

• Perform routine maintenance on all company vehicles
• Encourage drivers to take frequent breaks when traveling long distances
• Stress safety is more important than arriving at a destination on time
• Hold regular training on safe driving practices

Thinking about auto insurance for your business?

Owning a business comes with risks, as does operating a vehicle. Together, you’re facing greater risk as a small business owner. Even the safest driver can find themselves in circumstances out of their control, and no one wants to be stuck paying the cost of repairs from their own pocket.

Commercial auto insurance can help you avoid this outcome and keep your small business running smoothly, even when accidents happen. Need commercial auto insurance for your small business? Get a quote!

Thanks for reading! Please note that this content is intended for educational purposes only. As best practices change regularly, you should refer to your trusted advisor for specific counsel.

The post What to look for when purchasing commercial auto insurance appeared first on Pie Insurance.

In assessing threats to your small business, you might not consider a car accident to be near the top of the list. However, an unexpected accident can hit your company with as much force as it hits your vehicle.

Imagine Fiona, who runs a florist business. She bought a used, midsize van with a special cooling unit to transport her floral arrangements to venues like weddings.

One evening, Fiona was returning home from a wedding, and she ran a stop sign that was partially hidden by overgrown vegetation. Unfortunately, she crashed into a small sedan, and the passenger of the other vehicle filed a lawsuit against her business for sustained injuries and compensatory damages. Not only did Fiona lose transportation for her business, but she was also left with the real worry that financial liability for the accident would cripple her business for years to come.

Fiona’s troubles could have been minimized had she realized the necessity for small business insurance—particularly commercial auto insurance.

What is commercial auto coverage?

Most of us are aware that if you drive a personal vehicle, you’re required to have auto insurance. It manages the risk of a car accident, whether the accident is your fault or someone else’s.

If protection is necessary for your personal vehicle, it only makes sense that company vehicles require the same risk management.

As with personal auto policies, commercial auto insurance provides coverage when an accident involving a company vehicle results in injury, damage to property or liability claims.

How is commercial coverage different from personal auto insurance?

Unlike personal auto insurance, commercial policies often provide different amounts of coverage. They also encompass situations and vehicle use beyond the scope of a personal policy. Commercial auto policies are designed to consider conditions unique to your business and the kinds of vehicles you own or operate.

Another difference is commercial auto policies can also cover specialized equipment—often both expensive and essential to your business—that may be damaged during an accident. Even merchandise being transported (like Fiona’s floral arrangements) can be compensated if destroyed or damaged, including when the loss occurs during the process of loading or unloading.

Finally, commercial auto insurance covers multiple drivers, including employees who drive vehicles that belong to your business.

Types of businesses that require commercial auto insurance

Do you use a car in any way for your business? If so, then you are required to have commercial auto insurance.

Here are several types of businesses that may need to evaluate their need for this coverage.

Independent contractors

Even if you use your own car to conduct business, you’re involved in commercial ventures beyond your own personal pursuits, which exposes you to potential litigation against your business.

Any independent contractor who travels to various locations to provide services falls under this umbrella. This kind of business includes, but isn’t limited to, the following:

• Private cleaning companies, even if a sole proprietorship
• Freelance accountants
• Real estate agents
• Independent owner/operator truck drivers

Tradespeople and special service providers

Businesses in this category often use expensive equipment that requires additional protection or materials that could incur additional risk.

Imagine, for example, that you own a painting company. Your truck is involved in an accident that spills paint all over the place. The cleanup services alone could cost a small fortune.

The following are examples of small businesses that will want this extra protection:

• Plumbers
• Electricians
• Heating and air specialists
• Carpet and upholstery cleaners
• Painters
• Pest control technicians

Car dealerships and trucking and delivery companies

These businesses require vehicle protection, be it to cover potential mishaps due to constantly moving automobiles on and off a car lot or to mitigate the risk of deliveries involving larger vehicles (vans, pick-ups, semis).

The larger the vehicle involved in an accident, the more costly and even deadly the damage can be.

Construction companies

Construction businesses may need commercial auto coverage the most. Driving heavy machinery like bulldozers or cranes takes special training and experience. Since construction vehicles often transport large quantities of heavy materials, the potential for damage and danger is high.

Don’t let an auto accident cripple your small business

Operating a vehicle for your business comes with risks. Even the safest driver can find themselves in circumstances out of their control, and no one wants to be stuck paying the cost of repairs out of their own pocket.

Luckily, commercial auto insurance can help you avoid expensive repairs and keep the business running smoothly. Think you may need a policy? Pie can help with that!

Thanks for reading! Please note that this content is intended for educational purposes only. As best practices change regularly, you should refer to your trusted advisor for specific counsel.

The post What businesses need commercial auto insurance? appeared first on Pie Insurance.

Arizona ranks second in U.S. job growth, boasting 550,000 small businesses that employ nearly half of the state’s workforce. The state also ranks second in workforce quality and availability.

Do you own a small business in Arizona? If so, you may need commercial auto insurance, which protects your business and your business vehicles. Although your employees always strive for high standards of safety, accidents can still happen.

What do Arizona small business owners need to know about commercial auto insurance?

In Arizona, you’re required to carry commercial auto insurance to cover and protect your small business should any collision or auto damage occur.

Having insurance protects your small business when a company-owned vehicle is involved in a collision or is otherwise damaged. Typically, coverage includes company-owned vehicles, but it can also include personal vehicles used for business.

If your Arizona business owns more than nine vehicles, you may be able to obtain self-insurance or a certificate of deposit if you express financial responsibility. These options tend to be more challenging, so it’s typically safer and easier to purchase commercial auto insurance.

The type of insurance you need will depend on the dimensions and intended uses of the vehicle, as well as other factors outlined below.

Read on to learn what you need your commercial auto insurance to cover, as well as how to protect your employees and your small business in the case of a car collision or other business vehicle accidents.

What does commercial auto insurance cover?

Commercial auto insurance protects your business from any liabilities created by work-related vehicular accidents. It also protects your assets and drivers.

A typical commercial policy in Arizona can include:

Property and injury liability

This insurance is meant to repair any damage caused by your business’ vehicles. It’s required by law in Arizona to have this coverage. It can also be used toward coverage of the damaged party’s medical bills.

Collision insurance

This insurance covers any repairs needed from damage to business-owned vehicles, regardless of who was at fault during the collision.

Comprehensive insurance

This type of insurance is often known as coverage for “everything other than collision.” This can include any damage to your vehicle that wasn’t a result of an accident, including wildlife damage, a fire, etc.

Underinsured and uninsured drivers

If you or one of your employees is involved in an accident with someone who’s underinsured or doesn’t have car insurance, you may find it challenging to pay for the vehicle repairs and potential medical bills the collision may have caused. This coverage helps pay for those expenses.

5 essential facts about commercial auto insurance in Arizona

• You need commercial auto insurance if:
  • Your business owns or leases vehicles
  • A vehicle has a commercial license plate, registration, or tag
  • A vehicle is a necessary part of your small business operation, such as a taxi or delivery vehicle
• The cost of your commercial auto coverage will differ depending on:
  • The size of vehicle(s)
  • The number of vehicles
  • Typical travel radius
  • Frequency of use
  • Geographic location and any potential unique risk factors
  • The type of business you’re conducting
• Using a company vehicle can give you tax benefits. It’s a valuable tax-free fringe benefit for business owners and employees of small businesses.
  • As an employer, having auto insurance can give you a tax deduction
  • If you buy a vehicle for yourself to use for work, you can’t itemize any deductions on your taxes. Outlays for driving the car for business purposes would not include reimbursement
  • Under the Tax Cuts and Jobs Act, employee business expenses are non-deductible until 2025 because you can’t itemize miscellaneous deductions
  • Also, if you’re buying and paying for a vehicle yourself, you can’t deduct interest payments from your taxes
• Common vehicles covered by commercial vehicle insurance in Arizona include:
  • Cars
  • Pickup trucks
  • Commercial trucks
  • Semi-trucks
  • Delivery vans
  • Passenger vans
  • Buses
  • SUVs
  • Tractors
  • Hearses
• There are a few instances in which you’ll need to update your vehicle insurance policy, including:
  • When an employee covered by your auto insurance leaves or is terminated
  • When you hire a new employee who’ll be driving a company-insured vehicle
  • When an employee is involved in a collision or accident
  • When an employee receives a motor vehicle citation (ticket)
  • When your business buys a new vehicle
  • When your business sells a vehicle
  • Note: Keep your insurance agency aware of any of these changes, as they can affect your auto insurance policy

Thinking about auto insurance for your business?

Owning a business comes with risks, as does operating a vehicle. Together, you’re facing greater risk as a small business owner. Even the safest driver can find themselves in circumstances out of their control, and no one wants to be stuck paying the cost of repairs from their own pocket.

Commercial auto insurance can help you avoid this outcome and keep your small business running smoothly, even when accidents happen. Need commercial auto insurance for your Arizona small business? Get a quote!

Thanks for reading! Please note that this content is intended for educational purposes only. As best practices change regularly, you should refer to your trusted advisor for specific counsel.

The post Commercial auto insurance in Arizona appeared first on Pie Insurance.

Imagine Larry, the owner of a small landscaping service, has four people working on his crew. They pick up supplies, deliver them to project sites, and haul all their equipment in a trailer pulled by Larry’s personal truck. Larry usually drives the truck himself, but sometimes he sends one of his employees out to run errands while he stays and works on the job.

As a small business owner, when Larry started using his personal truck for work, he understandably worried about what an auto accident would do to his landscaping company in terms of damage to his vehicle or injury to his crew. He also knew that if he or any of his employees were held liable for an accident, that liability could undermine everything he’s worked so hard for.

In this scenario, commercial auto insurance is what Larry needs to safeguard his greatest assets.

What about your small business? Do you or your team regularly need to transport yourselves, your goods, or your services in the normal course of business? You might need to consider commercial auto coverage.

Read on to learn what a commercial auto policy looks like, and what’s covered under its terms.

What is commercial auto insurance?

Commercial auto insurance is a type of business insurance that covers any cars, trucks, vans, or other vehicles used for conducting business.

This insurance provides additional coverage for situations and use cases that personal auto insurance policies don’t cover, such as when someone other than the vehicle owner drives said vehicle.

Liability damages

Do you own, lease, hire, or use vehicles for any business purposes? It’s recommended that you at least carry commercial liability insurance.

Liability insurance covers bodily injury to other parties involved in the accident, as well as property damage to any other vehicles if you or your employees are found to be at fault.

The bodily injury portion of the policy pays the injured parties’ medical expenses and lost wages, as well as your legal expenses should you find yourself in a lawsuit as a result of the accident.

However, a liability policy alone won’t protect you if you’re the victim of someone else’s mistakes or carelessness. And it won’t cover your own bodily injuries or property damage if you’re at fault, so it’s the absolute minimum coverage you should get.

Collision

A collision is likely the first thing you’ll think of when considering the need for auto insurance.

Commercial collision insurance pays for damage to your business vehicles, regardless of fault. It also pays if you hit another vehicle, if another vehicle or object hits you, or your vehicle rolls over for any reason.

In terms of frequency, collision claims are the most common, averaging 5.8 claims per 100 car years.

Comprehensive physical damage

Comprehensive physical damage refers to vehicular damage due to causes other than a collision. For instance, your automobile might fall victim to:

• Theft
• Flood
• Vandalism
• Earthquakes
• Fire
• Animal damage (rabbits and other rodents, for instance, can chew on car wires)

A comprehensive commercial auto insurance policy should cover all such cases.

Medical expenses

Unfortunately, in the event of an accident, vehicles aren’t the only things that can be damaged or injured.

Your employees are your greatest asset and their health and wellbeing are important. After all, vehicles can be repaired or replaced far more easily than people. For that reason, make sure you have a commercial auto policy that covers medical expenses including:

• Imaging (x-rays, MRIs, CT scans, etc.)
• Any needed outpatient or inpatient care
• Physical or occupational therapy if necessary

Uninsured or underinsured motorists

When an accident occurs, the person at fault (or rather, their insurance carrier) typically is responsible for paying for all damages.

Although all but two states require drivers to carry car insurance, it unfortunately doesn’t mean all drivers do. In the event your commercial vehicle is struck by an uninsured or underinsured motorist, a full commercial auto policy will cover you. Your carrier will step in where negligent parties fall short and cover the bases.

Options and extras

Most commercial auto insurance policies provide coverage in the areas mentioned above: 1) liability damages, 2) collision damages, 3) comprehensive physical damages, 4) medical expenses, and 5) uninsured or underinsured motorists.

However, some carriers also allow you to customize your commercial auto policy with coverages such as:

• Roadside assistance: Assists with situations like being locked out of your car, dead batteries, and flat tires

• New vehicle replacement cost: Replaces a new car in the event that it becomes “totaled”

• Hired auto physical damage: Covers comprehensive and collision damage for a leased or rented vehicle

• Auto loan or lease: Covers the difference between what you owe on a loan or lease and the actual cash value of a totaled vehicle

• Expanded towing: Towing coverage beyond what your standard commercial auto policy covers

• Rental reimbursement: Pays for a rental car so you still have transportation and can carry on with business after an accident

Do you really need commercial auto insurance?

You might not think you need a commercial auto insurance policy if you’re not in a field that uses commercial fleets. However, many common business activities—from simply driving to meet clients to driving to locations for on-site work—constitutes commercial use of a vehicle.

A few instances when you need commercial auto insurance include:

• When your business owns or leases the vehicles
• When your vehicles have a commercial license plate, registration, or tag
• When your vehicles are an essential part of your business operations, such as a taxi or delivery truck

Don’t let a fender bender be a business ender

Operating a vehicle for your business comes with risks. Even the safest driver can find themselves in circumstances out of their control, and no one wants to be stuck paying the cost of repairs out of their own pocket.

Luckily, commercial auto insurance can help you – just like it did for Larry and his landscaping service – avoid expensive repairs and keep the business running smoothly.

The post What is covered by commercial auto insurance? appeared first on Pie Insurance.