What you need to know about business car insurance
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With many businesses relying on vehicles for deliveries, client meetings and more, it’s key to make sure you have the right insurance. A standard policy could leave you exposed should an accident happen during work hours. Even with the UK emerging from recession, it’s the last thing most businesses need.
If you’re unsure what route to take, this guide will help you make informed decisions about your coverage to protect your assets on the road.
Understanding the basics
As the name suggests, business vehicle insurance covers vehicles used for business purposes, ranging from a single car to a fleet of lorries. This differs from personal vehicle policies by covering you for potential losses and damages incurred during your business activities.
Standard insurance typically covers social, domestic and commuting journeys to a single place of work, but nothing more. This can lead to major problems if you’re involved in an accident in a work context.
Assessing your coverage needs
Choosing the right level of coverage is vital and depends on various factors including the number of vehicles, their types and usage patterns.
For instance, a construction company with heavy vehicles will have different insurance needs than a property agency using cars for client visits. You’ll need to consider your risk before building any policy.
Benefits of extra protection
Opting for comprehensive coverage can guard against several risks, including vehicle theft, damage from accidents - even if caused by you - and natural disasters. Plus, liability coverage can be vital if your employees are involved in an accident, as it protects your business from potential lawsuits and third-party claims.
While not essential, these more robust policies help protect your physical assets as well as shield you against serious financial and legal repercussions.
Short-term insurance options
There are times when your business may need short-term or temporary car insurance - for example during periods of high demand, or when an employee needs a vehicle for a one-off business trip.
Short-term cover is a flexible, fast solution without any long-term commitment, offering a cost-effective way to manage temporary increases in your business activity.
Reducing costs and managing your cover
You can take several approaches to reduce premiums, such as choosing models with lower insurance costs, adopting strict safety rules and opting for higher deductibles. Other tips such as keeping mileage down won’t suit every business, however.
Regularly reviewing your cover will make sure it aligns with your current needs, as well as the economic landscape. 32% of SMEs admit to not considering inflation when reviewing their insurance options, for example.
The final word: consulting a professional
Understanding the basics is a great first step, but speaking to an insurance professional can provide invaluable guidance tailored to your business. They’ll help shape a policy to your business model and risk exposure - ensuring you’re neither underinsured nor overpaying.
Are you confident in your coverage?