Most businesses in the Annapolis Valley need some type of vehicle for transportation. It could be the compact car that delivers pizza, or the van taking beautiful bouquets of flowers to people all over the area. Or perhaps it is the huge 18 wheeler delivering an entire truck load of supplies. No matter what kind of business vehicle you own, it must be insured in Nova Scotia, and when you choose the right insurance people, you can save time and avoid many headaches in the future. Let's look at some of the problems that can occur when you own a commercial vehicle.
Tom B ran a local pharmacy for many years, and he managed to stay in business even when the large chain drug stores moved into the neighborhood. How was Tom able to do this? He provided honest and personal service. It didn't take Tom an hour to fill a prescription and he was always available to answer questions. He had loyal customers that he called by first name and if someone was out of refills for his or her prescriptions, Tom would call the doctor office for them. Tom also provided free delivery service to customers with mobility or transportation issues.
One Saturday the pharmacy was very busy and there were many deliveries to make. However, Tom's delivery car would not start so Henry (his delivery person) offered to use his own car for the day. Tom agreed and Henry was soon on his way. Everything went smoothly until Henry had just finished his last delivery. On his way back to the pharmacy, Henry's car hit a large pot hole in the road and threw the car out of control. It skidded into the opposite lane and into the path of an oncoming car.
Henry received serious injuries as did the occupant of the other vehicle. Thankfully, Tom had talked to his insurance broker about commercial vehicle insurance only six month before. His broker advised him to take out ENOL coverage, which paid for the claims. Without this helpful advice, Tom could have been in all kinds of financial and legal trouble.
What is Business Car Insurance?
This insurance protects you from lawsuits and damage claims concerning your company cars or trucks. It is much like personal car insurance except it covers
business related issues.
Who Needs Business Auto Insurance?
Does your business need transportation? The vehicles you use are a business expense and you must insure them. It doesn't matter what kind of vehicles you own. For example, you could be a trucking company or a luxury limousine service. All business vehicles need insurance, including these businesses:
- Airport shuttle services
- Special delivery services
- Senior service providers
- Newspaper delivery
- Taxis and car services
- Funeral service providers
What Comes Standard with Commercial Auto Insurance?
Because your business may be different than other businesses, your insurance needs may vary a great deal. However, if you drive in Nova Scotia you must
have these required insurance items:
- 3rd party liability – pays when your insurance covers a claim for another driver or passenger, and you have to take out at least $500,000 worth of
coverage. This requirement may be higher if you have large trucks.
- Uninsured motorists – protects you if you are hit by an uninsured driver, or if the driver has no insurance. This also includes hit and run incidents that
damage your car.
- DCPD - stands for direct compensation property damage. Your insurance company pays damages caused by you, and it is done on a guilt percentage basis. In
other words, if the accident was 60 percent your fault, liability covers 40 percent and your collision coverage covers 60 percent of the claims.
- Accident benefits – special benefits like rehabilitation services and lost income. Also pays funeral benefits.
Options for Commercial Vehicle Insurance
Here are some of the options you can take out with your insurance policy:
- Collision - pays for your car's damage if you are at fault.
- Comprehensive – covers a wide range of damage from theft, fire, hail, and damage from falling trees or tree limbs.
- ENOL – employer's non owned liability. This business auto insurance option was used in the example of Tom B and his pharmacy employee.
- Roadside assistance
- Rental car – this gives you transportation while your vehicle is being repaired.
Where to Get the Best Commercial Auto Insurance
Would you like to save money on your business car insurance? You can shop several companies and compare rates and benefits. However, it's so much easier to go to a licensed insurance broker at Russell Insurance Group Ltd. There, you have an insurance advocate that will comparison shop companies for you and this can save you money and get you the best coverage options for commercial vehicle insurance.
An insurance broker is an independent agent that does business with several top insurance companies. We work for you and we give you personal service along with claims assistance. To see what Russell Insurance Group Ltd can do for you and your business auto insurance, give us a call at (902) 847-3274.