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Who needs commercial vehicle insurance?

If you own a fleet of vehicles that are used exclusively for your business or you own a freight truck or delivery truck, you probably understand that you need commercial vehicle insurance on those vehicles.  But what if you have one vehicle that you use to deliver pizzas?  What if you use your personal vehicle to drive to job sites or to meetings?

Any vehicle being used for business or commercial purposes is technically a commercial vehicle, which means it needs to be insured by a commercial vehicle insurance policy.  This includes any vehicle used for the pickup or delivery of goods and any vehicle used to transport people for business.

You may also need commercial vehicle insurance if your vehicle is…

• Registered or titled to a:
  • Business
  • Corporation
  • Partnership
  • Rented or leased by others
  • Equipped with:
    • Snowplowing equipment
    • Cooking or catering equipment
    • Bathrooms
    • Altered suspensions
    • Hydraulic lifts
    • Racing equipment

Bottom line: If you own or use any type of vehicle for business purposes, you need a good commercial auto insurance policy to protect yourself, your employees, and your business!

Commercial vs. Personal Car Insurance

It is true that the premiums for commercial vehicle insurance are generally higher than premiums for personal vehicle insurance, but there’s a very good reason for that - the risk of covering any vehicle used for business purposes is higher than the risk of covering cars used for personal purposes. This is the main reason car insurance policies for commercial purposes differ from personal policies.

Types of commercial auto insurance include:

• Business auto insurance
• Truck insurance
• Cargo insurance
• Pickup truck insurance
• Tow truck insurance
• Van insurance
• Dump truck insurance
• Non-owned/hired liability insurance

Many of the common types of personal car insurance coverage also apply to commercial auto insurance, such as:

• Bodily injury liability
• Property damage
• Comprehensive
• Collision
• Medical payments
• Personal injury protection (PIP)
• Uninsured/underinsured motorist

 But, commercial car insurance policies are better suited to cover:

• Your business and its assets
• Your employees or other drivers you hire to drive your company cars
• The higher risk of operating certain commercial vehicles

DON'T RISK IT!

If you carry a personal car insurance policy, and you file a claim for an incident that occurred while driving for business purposes, you may find that your car insurance company will not pay on that claim. A good commercial auto insurance plan can save you from a financial disaster, regardless of whether you're an independent contractor or the CEO of a multi-million dollar company.

How is my commercial vehicle insurance rate determined?

Your commercial auto insurance rate depends on several factors. These factors include, but are not limited to:

• Age and personal driving record of all drivers (driving history is one of the biggest factors in determining your rate)
• License type of all drivers
• Vehicle make and model including its safety rating, age, and history
• Type of cargo the vehicle carries
• Number of passengers the vehicle transports
• Annual mileage

The nature of your business and how your vehicles are used will also affect your rate.  As with personal vehicle insurance, the lower your risk, the higher your savings will be. Other factors include:

• The limits of your coverage
• Any optional coverage you purchased
• Your deductible
• Your credit history

The best way to determine if you need commercial vehicle insurance and what type of coverage is best for your business is to speak with an experienced independent insurance agent.  Call American Insuring Group at (800) 947-1270 or (610) 775-3848 or email us to learn more about commercial vehicle insurance.

Smart business owners know that insurance is important to protect their business and assets.  But, knowing which ones are right for your business can be a challenge.  No one wants to be caught without the right business insurance if something happens, and no one wants to pay for insurance that isn’t necessary. Here are six questions to ask to help determine what type of insurance you need to protect your business:

1.     Is it possible that someone could be injured or property damaged in the course of doing business with me?

If you answered yes, then you should consider Commercial Liability Insurance. Every business, even a home-based business, needs to look at liability insurance.  This type of policy provides insurance protection for bodily injury or property damage claims that you become legally responsible to pay. Standard policies include premises and operations risks that are common to the business owner or contractor. These policies also include product liability insurance and completed operations liability coverage. Medical payment insurance protection is also standard with most policies.

2.     Do I own a building or any business equipment or property – such as office equipment, inventory, or tools – to run my business?

If you answered yes, then you should consider Commercial Property Insurance. If you own a building or have business property  you should consider protecting those assets from fire, vandalism, theft, smoke damage, etc. with Commercial Property Insurance.  Expanded coverage often includes water damage, sewer back-up, business interruption insurance, and more. A tailored property insurance policy usually pays on a replacement cost basis, which means there is no depreciation in the event of a loss. 

3.     Could someone sue me based on the business that I conduct with them?

If you answered yes, then you should consider Professional Liability Insurance.  This insurance, also known Professional Indemnity Insurance, is a type of commercial insurance that provides protection for an Error and Omission Insurance exposure. This type of insurance protection typically covers negligence claims arising from an alleged act or failure to act that caused harm to another. Doctors, lawyers, and most professionals have some type of Error & Omission Insurance (Professional Liability Insurance) exposure. 

4.     Do I use any type of vehicle to run my business?

If you answered yes, then you should consider Commercial Vehicle Insurance.   This is an insurance that covers owned and non-owned vehicles that employees, contractors, and business owners use to conduct business.  The vehicle could be a truck, a van, a limo, or even a sedan, depending on what that vehicle is used for and what it is equipped with. Standard vehicle insurance coverage includes bodily injury and property damage liability, personal injury protection (including medical and lost wages expense), and uninsured and underinsured motorist coverage and physical damage to your vehicle including comprehensive and collision coverage. 

5.     Do I have any employees working for me?

If you answered yes, then you should consider Worker’s Compensation. Worker’s Compensation Insurance is a type of small business insurance that is mandatory in most states and covers employees for work-related injuries. A typical "workers comp" insurance policy pays lost wages and medical expenses incurred due to a work-related accident, while also protecting the employer against accident-related lawsuits. 

These five business insurance questions are a great starting point for any business owner, but you don’t need to go it alone.  The advice of a trusted and experienced independent insurance agent from American Insuring Group can help ensure that you obtain the right insurance at the right price for your business.  

Don't take a chance - contact us  at (800) 947-1270 or (610) 775-3848.

Whether your company owns one commercial vehicle or an entire fleet of vehicles, regular vehicle maintenance is one of the best things you can do to protect your employees, your property, and your business.

As a bonus, any time you reduce risk you reduce the chance of incurring an insurance claim, which ultimately can help lower your commercial vehicle insurance and other business insurance rates.

Here's How:

• Regular maintenance can help prolong the life of your vehicle and allow it to operate more efficiently. 
   
• Regular maintenance also helps ensure the safety of your employees and can help cut down on insurance claims.
   
• Many state and U.S. regulations require a preventive vehicle maintenance program, including a structured record-keeping system.  Non-compliance of these regulations can lead to strict penalties, including hefty fines. 

Commercial Vehicle Compliance

Before initiating an internal vehicle maintenance plan, you should understand federal commercial vehicle requirements. Every year, the Commercial Safety Vehicle Alliance (CSVA) conducts approximately four million commercial motor vehicle inspections throughout North America.  These inspections focus on vehicle mechanical safety, traffic enforcement, cargo securement and regional rules and regulations.  Any vehicle with a gross vehicle weight rating of more than 10,000 pounds, including the weight of a trailer, may be subject to these random road checks. http://www.cvsa.org/programs/nas.php

Developing a Better Commercial Vehicle Preventive Maintenance Program

In addition to complying with federal regulations, it’s also a good idea to create a formal preventive maintenance program that includes a daily pre- and post-drive checklist.  This helps insure that drivers share some of the vehicle maintenance responsibility and that the day-to-day safety requirements are met. 

Where to Begin

A good place to start is the Federal Motor Carrier Safety Administration (FMCSA) website.  http://www.fmcsa.dot.gov/ FMCSA’s “A Motor Carrier’s Guide to IMPROVING HIGHWAY SAFETY” is a great resource.  It includes lots of information and record-keeping forms. http://www.fmcsa.dot.gov/sites/fmcsa.dot.gov/files/docs/ETA-Final-508c-s.pdf.

With a preventive maintenance plan in place and knowledge of federal and state regulations, your one commercial vehicle or your entire fleet will be ready for the road. 

Reduce Risk & Save Money with the Right Commercial Vehicle Insurance

American Insuring Group’s independence and high standards allow us to provide the best commercial vehicle insurance rates and high-quality insurance protection for your commercially used car, van, truck, or fleet.  Contact us at (800) 947-1270 or (610) 775-3848 to learn more.

Picture this: a pizza delivery guy, a shuttle driver (sole-proprietor of the business), and an independent landscaping contractor collide into each other at the intersection of First and Main.

As they all get out of their vehicles to examine the damage, the delivery man asks, “Do you guys have commercial vehicle insurance?”   Both drivers shake their heads no.  “Do you?” asks the shuttle driver.  The delivery man looks down at his feet, and says, “No, but I’ve been meaning to talk to my insurance agent about it.” 

Insurance Claim Denied

In this scenario, chances are that all three would hear the same answer from their insurance agent, “Sorry, but your personal vehicle insurance won’t cover this accident.”  

If you own a fleet of vehicles and hire many drivers, you probably know you need commercial vehicle insurance.  But what if you just use your personal vehicle for business occasionally, or it’s just you driving your truck from job to job?   Won’t personal car insurance cover you in the event of an accident?  It depends. 

Like personal vehicle insurance, commercial vehicle insurance covers things such as liability, collision, comprehensive, medical payments, and uninsured motorist coverage. However, there may be a difference in eligibility, definitions, coverage, exclusions, and limits. Certain business usage and vehicle types can be excluded from personal policies. Some businesses need coverage only found in commercial car and truck insurance. 

Commercial Vehicle Insurance Benefits

Commercial vehicle insurance generally includes higher liability coverage.  Sometimes commercial insurance also insures the items (such as work equipment) within your vehicle; it may include rental reimbursement to help cover the cost to temporarily replace a commercial vehicle; and it may offer single-deductible options, which allow you to extend coverage to trailers or other specialized equipment you haul. 

So, how do you know if you need commercial vehicle insurance or if personal vehicle insurance is enough? It depends on the nature of your business, how you use your vehicle, and your insurance company’s policies.  Here are a few questions you need to consider - if you answer yes to any of them, you may need commercial car insurance.

·       Is your vehicle used to transport goods or people for a fee?

·       Is your vehicle owned or leased by a partnership or corporation?

·       Is your vehicle registered or titled to a business, corporation, partnership, or DBA?

·       Do employees operate your vehicle?

·       Is your vehicle a pickup, van, or utility vehicle with a gross weight exceeding 10,000 pounds or does it have a rated load capacity over 2,000 pounds?

·       Is your vehicle equipped with snowplow equipment, cooking or catering equipment, bathrooms, altered suspensions, hydraulic lifts, or racing equipment?

·       Is your vehicle equipped with a ladder rack or permanent toolbox that is used for your business?

Don't Take Chances on Insurance for Your Commercial Vehicle - Contact Us Today

Personal vehicle insurance provides enough coverage for some businesses; however, there are times when commercial vehicle insurance is required.  If you don’t want to be like the pizza delivery driver, the shuttle driver, or the independent landscaping contractor in our story, contact us for advice in making the right insurance decision at (800) 947-1270 or (610)775-3848.  We'll help you obtain the right type and level of vehicle insurance for your business. 

Be honest!  Did you make any New Year’s resolutions this year?  If you did, you weren’t alone.  According to Statistic Brain, 45% of Americans “usually” make New Year’s resolutions, and according to Constant Contact®, 53% make business-related resolutions. 

Statistic Brain found that losing weight is the number one New Year’s resolution for 2014 – no surprise there.  And number two?  The second most popular resolution for 2014 is – drum roll please - getting organized.  Now if losing weight is on your list, there are many other organizations more suited to helping you than an insurance company (unless you want to know how weight could possibly affect your life insurance premiums).  However, a good insurance agent can help get your business organized.

Getting organized isn’t just about “A place for everything, everything in its place,” as Benjamin Franklin said.  It’s also about having everything you need so your business can run smoothly and profitably.  The right business insurance can help your business do just that - and protect it by minimizing financial risks associated with unexpected events.

Commercial Liability Insurance

First, you should consider liability insurance to protect your company’s assets in the event that someone gets hurt on your property or you (or one of your employees) cause property damage or injury.  Even if you doubt you’ll ever face a claim, we live in a litigious society; purchasing liability insurance is a wise and affordable investment.  There are a wide variety of commercial liability insurance options such as general liability insurance, product liability insurance, and error and omission insurance. 

Commercial Property Insurance

Commercial Property Insurance is another insurance to consider.  It covers everything related to the loss or damage of company property due to events such as fire, windstorm and hail, smoke damage, vandalism, theft, and more. “Property” may include lost income, business interruption, and company papers, as well as equipment and buildings.

Commercial Vehicle Insurance

If you use a vehicle – whether you own it or not – for any purpose other than driving to and from work, you should check your existing insurance policy to see if you need a commercial vehicle policy.  Standard vehicle insurance coverage includes bodily injury and property damage liability, personal injury protection, and physical damage to your vehicle including comprehensive and collision coverage. 

Worker's Compensation Insurance

Worker’s Compensation Insurance is mandatory in most states (including Pennsylvania), and covers employees for work-related injuries.  A typical "workers comp" insurance policy pays lost wages and medical expenses incurred due to a work-related accident and protects the employer against accident-related lawsuits.  

Business Umbrella Insurance

Finally, umbrella liability insurance is a type of commercial insurance that covers a small business for liability claims that exceed the underlying limits of liability coverage.  Umbrella policies are a type of commercial insurance that adds an extra layer of public liability insurance protection.  

Now is a Great Time to Review Your Business Insurance Needs

Whether “getting organized” is on your list of 2014 New Year’s resolutions or not, now is a great time to review your insurance policies to ensure that you have the right coverage to protect your business and allow it to run smoothly.  AIG would be very happy to help you with this resolution.  Contact us at (800) 947-1270 or (610) 775-3848 to arrange a policy evaluation.  Then you can sit back and enjoy your well-ordered office space, knowing that it’s protected.

Unfortunately, you’ll have to call someone else if you want help losing weight!

Too Busy to Assess Your Risk?

Many small business owners are so busy these days that they have little time to slow down and properly analyze their risks and business insurance needs.  And it’s no wonder. Small businesses from Reading PA in Berks County, to Philadelphia, Allentown, Lancaster, and all across the nation drive a significant portion of the country’s economic growth. However, they tend to be lean, which means the typical small business owner is wearing many hats and putting in long hours. Many are too busy to take the time to properly analyze risks, and to obtain adequate insurance protection to address the risks of their growing businesses.

Just How Big Can a Small Business Be?

Statistics available from the US Small Business Administration (www.sba.gov) indicate that small businesses employ more private sector personnel than mid-sized and large businesses combined.  In the US, small businesses are generally defined as manufacturing businesses with less than 250 employees, and non-manufacturing companies with under $7 million in annual receipts.

Engines of Economic Growth 

Small businesses are the engines of private sector economic growth, creating approximately 2/3 of new non-government jobs while generating over 40% of the private payroll in the US. Small businesses account for a similar proportion of total US high-tech jobs as well.

Questions Small Business Owners Must Ask to Determine Risk and the Right Level of Business Insurance Protection

Regardless of how busy you may be, busyness is no excuse for ignoring risks that could sink your business.  Here is a brief list of questions every business owner should answer as a first step in assessing risk and the need for stronger insurance protection:

• Disability Insurance:
  Who will run my business if I become disabled permanently or for an extended period? Will my company have the financial resources to pull through this type of crisis?
  
  
• Life Insurance:
  If I die will my business survive? Will my employees all lose their jobs? Will my family be able to keep our house and maintain a good lifestyle?
  
  
• Key Person Insurance:
  What if a person who is vital to my business dies or becomes permanently disabled? Will my business have the financial resources to survive until a new person can be found, hired and fully trained, or will it set me back several years?
  
  
• Workers Compensation Insurance:
  Are my employees properly classified for workers compensation insurance? Could my business survive a workers compensation insurance audit without undergoing major penalties for misclassifying employees? Is my workers compensation insurance coverage fully up to date to reflect my changing business needs and the expanded types of positions my employees currently hold?
  
  
• Property Insurance and Business Interruption Insurance:
  Are my buildings, equipment, and other business property insured against the full range of potential risks? In the event of a claim that disrupts my cash flow for a prolonged period, will I receive compensation for the loss of income during that time, or merely for the cost of the damage to my business property?
  
  
• Professional Liability Insurance:
  Am I covered if an employee were to cause harm to a customer or to their business, and a court found it to be due to negligence? How vulnerable is my business to various types of lawsuits?

Be Smart – Be Informed on Business Insurance

Our staff can properly address these and other business insurance questions. We’re a Trusted Choice independent insurance agency. That means we offer a range of business insurance plans from competing insurance companies. We’re well positioned to find the right business insurance coverage at a significant savings.

Contact us today at 610-775-3848, or click to Contact Us online.

Have you recently started a new business, or perhaps suddenly come to the realization that your personal vehicle insurance may not fully protect you when using your car, van, or truck for business purposes? 

Commercial Vehicle Insurance Coverage Differs by Company

Although each insurance company has different guidelines for determining to what extent your personal vehicle may be insured when used for commercial purposes, it is nonetheless risky to assume your personal vehicle will be properly covered, if it is covered at all. Rather than taking chances, consult an independent insurance agent to learn the details of your coverage, and to select the best insurance company and policy to meet your commercial insurance needs.

How to Know if Your Vehicle Use is Commercial or Personal

The most obvious indicator that you are using your vehicle for business purposes occurs when you are using your car, van, truck, or other vehicle to transport merchandise or people, or to perform services for a fee.

For example, if you are using your vehicle to:

• Deliver flowers or restaurant food, such as pizza or other food items
• Perform landscaping services, such as delivering workers and/or materials
• Perform snow removal services
• Tow a trailer used for business purposes
• Travel to customers for sales calls or to perform consulting services 

Who is Covered Under a Commercial Vehicle Insurance Policy?

Unlike a personal policy, commercial vehicle policies allow you to cover any of your employees when your vehicle is used for business purposes. If your vehicle is driven by employees, that’s a sure sign that you need a commercial policy. Likewise, if your vehicle is owned under a corporate partnership, or used to haul heavy equipment, or to make deliveries requiring federal or state filings, then you definitely need commercial vehicle insurance protection.

Amount of Vehicle Insurance You Need for Business vs. Personal Use

Commercial vehicle insurance policies generally provide greater protection than personal policies, with higher liability limits. However, it’s very important to make sure you are fully protected for both business and personal use if your vehicle is used for both.

Don’t Take Chances!

By now we hope you are thoroughly convinced that it is not worth taking chances with your commercial vehicle insurance coverage. Whether you hail from a larger city like Philadelphia or Allentown, or smaller areas like Reading or Lancaster, you need the right insurance protection. Please don't take chances with your future.

To learn more about commercial insurance for your car, van, truck, or commercial fleet, click here.  Or, contact us online. You may also reach us at (610) 775-3848. We’re independent insurance agents who stand ready to help you find the insurance protection that’s right for you, your budget, and your business.

When looking for commercial vehicle or van insurance in small to large towns from Reading to Philadelphia and beyond, there are a few points to consider, and some tend to get lost in a potential insurance minefield – here are a few frequently asked questions many ask when searching for the right insurance for their small business.

Is it hard to insure a vehicle for commercial use?

Not really. Anyone can apply to insure a commercial vehicle, (for example, a van), but they will find they are restricted when it comes to personal or private use of that vehicle. As long as the vehicle falls under commercial use, like delivering goods or providing a service (say, if the owner is a builder just using the van to get from A to B) then it is much easier to obtain insurance than if the applicant also wanted the vehicle for private use.

Define ‘commercial vehicle’?

Not sure if your vehicle falls under the right guidelines? Here are the main types of commercial vehicle:

• Goods-carrying vehicles: this is the most common type of commercial vehicle, used to transport products or necessary items for services. This can range from small cars and vans to larger trucks.
• Passenger-carrying vehicles: this applies to buses, coaches, and hire cars.
• Forestry and agricultural vehicles
• Special construction vehicles: vehicles that serve a particular purpose are known as ‘special types’ of vehicle and apply to ambulances, fork-lift trucks, and cranes.

What about windshield coverage?

Windshield coverage usually comes down to the insurance company and the level of coverage taken out, but this type of coverage is typically available for commercial vehicles as a policy extra, under "Comprehensive" coverage.

How can I lower my van insurance premium?

There are a number of ways that some companies do this, but here are three ways for customers to reduce their premiums:

• Usage - how the vehicle is used can lower your insurance premiums.  If you park the van at one jobsite for the day will be a lower cost than if you travel to mutiple locations during the day.
• Safe drive Badge – a simple sticker on the back saying ‘How’s my driving?’ with a number on the back (preferably to the insurance company) will also reduce premiums. This is because anyone driving dangerously will obviously be reported by other drivers, hypothetically making the driver in question more cautious about their driving.
• Driving Convictions – this is a simple one; don’t acquire any speeding convictions. Insurance companies tend to ramp up the premiums for people who have previous driving convictions. 

Get Help - Get the Right Commercial Vehicle Insurance for Your Car, Van, or Truck

Searching for Commercial Vehicle Insurance?

When looking into insuring a company car, van, or pickup, you will find commercial vehicle insurance and regular auto insurance are entirely different animals. But although the products available differ greatly, the basic principles apply when it comes to finding the best policy for a particular small business – be it auto insurance for a private, or commercial vehicle.

A commercial vehicle insurance policy normally is required when a van or pickup truck is used in a trade or occupation to earn an income.  Be careful: most personal auto policies exclude business use for these types of vehicles!  A private passenger auto can be insured on either a personal auto policy or a commercial auto policy.  The difference is commerical policies usually are higher priced due to the business usage. Most insurance companies do not allow personal insurance on a vehicle that is used by employees.

As long as this is understood, finding a product that works best for an individual company’s needs should be fairly simple. In the same way that the Internet holds many of the answers when it comes to finding affordable private vehicle insurance, the same can be true when looking for the most fitting commercial vehicle insurance. It’s a great starting place, and many businesses can learn the basics with a simple search and compare website. 

Research Online

Many auto insurance providers also offer commercial vehicle insurance, but going there in person could take much longer than doing some basic research online.  This is because commercial vehicle insurance quotes can take much longer to prepare than quotes for regular car insurance. Therefore, consider searching online first to become educated about business vehicle insurance policies and companies, but understand that receiving expert advice is very important before making a purchasing decision.

Seek Advice Before Buying Insurance for Your Commercial Vehicle

For people who are new or inexperienced in buying commercial vehicle insurance, it is especially wise to seek advice from others who have gone through the same process. This will help to give an idea about how the application process works, which product is best, and also things to look out for or hidden traps NOT to fall into.

The claim process, for example, should be quick and easy – so choosing the right policy shouldn’t just come down to price. If an insurance company is slow and cumbersome, this boils down to money lost from any potential business.

An insurance expert can also give advice for those who are unsure of which company to pick for their commercial vehicle insurance, and will be able to help compare various quotes to find the best and most suited for an individual business. However, make sure the insurance agent is not tied to a single company who will pressure them to recommend their policies over others.

Check Out All the Insurance Options

Depending on the company and the number and types of vehicles a business owner wants to insure, there may be more options or deals available, so look out for that. Companies are also known to offer discounts for particular business models or vehicle usage, so be sure to get multiple quotes covering multiple insurance brands before making that important final decision. 

Make Insurance Competition Work for You

A knowledgable insurance agent offering a variety of competing insurance companies is well positioned to recommend the right coverage for your commercial vehicle at the best price. That's why American Insuring Group offers policies from several competing carriers. We're well-positioned to find you the right policy at the right price. 

Contact Us today for a free, no-hassle consultation.