When operating a business in New Jersey, it is important to learn about the different types of commercial insurance available. While many companies look to obtain the most cost-effective solutions, it’s vital to ensure that any new jersey commercial auto insurance policy that you purchase provides the needed coverage. You’ll want to be protected in the event that an employee is driving a company vehicle (or a personal vehicle) while performing work-related duties and becomes involved in an accident.
When an accident involves injuries to the driver, or other third parties, your commercial auto insurance will help to pay the cost for any medical attention needed, along with repairs to the vehicle(s). This coverage becomes even more essential because auto accident claims can turn out to be extremely expensive. You’ll want to educate yourself on the various commercial auto insurance policies available in order to determine which policy best fits your needs.
Annual reviews help in making informed decisions
Small businesses should annually review their insurance policies in case their coverage needs to be updated. You can examine rates from several different companies, making sure to compare plans that provide nearly identical coverage. Typically, New Jersey commercial auto policies have higher liability limits. For example, coverage of $1 million is probably sufficient to cover accidents involving less severe injuries. They also may have provisions that cover rented and other non-owned vehicles, including employees’ cars driven for company business. This is only necessary if employees are asked to use their own vehicles during the course of their employment.
Several factors related to ownership and use of vehicles helps to determine whether a personal or commercial policy is appropriate. Questions, such as who owns or leases the vehicle, who drives the vehicle, and how the vehicle is principally used are all relevant in making this decision. For example, it matters whether you are transporting people, or delivering packages. Also, is the vehicle being used to carry hazardous materials?
These are important factors that can help determine your rates and will help you in obtaining the proper coverage for the right situation. Any business owner using commercial vehicles needs to invest in new jersey commercial auto insurance, so speak to an agent today.