Just like you have a personal auto insurance policy to cover your vehicle, your business may also need car insurance to protect its best interests. If you aren’t sure whether or not your company needs this form of NJ business insurance, it’s essential to understand its purpose and what it covers.
Who Needs It
If your business owns, rents, or leases a car to handle your operations, you need a commercial auto insurance policy. Similar to your personal auto insurance policy, this form of NJ business insurance protects your business from being held financially responsible for damages.
What These Policies Cover
What your commercial auto insurance policy covers depends on the type of policy you obtain. For example, if you have collision coverage, your policy will take care of the cost of any collisions that occur while you or one of your employees is driving. In comparison, a comprehensive policy protects your vehicle from a variety of different risks. For instance, if your company car were to get vandalized while it is sitting in a parking lot, your insurance policy would financially handle the damage.
Unlike liability coverage or workers’ compensation coverage, not every business needs a commercial auto insurance policy. If you aren’t sure whether or not you need this type of coverage, you may want to consider speaking with an insurance provider who can discuss your needs with you and go over your coverage options.