Four Facts About Auto Insurance for Delivery Businesses

There are dozens of different industries that can be considered to be part of the delivery business. Pizza parlors, flower shops, dry-cleaners and mail couriers are just the tip of the iceberg. These businesses can be quite lucrative due to their high demand generated by the ease and convince for clients, making the delivery market a popular industry in today’s fast paced world. However, there are a lot of factors many new or experienced business owners might not anticipate. For example, insuring a fleet of delivery vehicles is very different than securing auto insurance for a personal use car or truck. Listed below are four facts about insurance for delivery vehicles.

truck-delivery-biz1. Vehicle insurance for delivery companies is based on a different set of criteria than individual insurance. For example, insurance companies evaluate insurance policies based on things like intended mileage, the time of day the vehicles will be driven, and the cities or territories in which a company plans to use their vehicles. Communicate these facts clearly to the insurance companies you are considering to get the most accurate quote possible. Your policy may be affected by the number of vehicles you have in your fleet and the kind of delivery company you are planning to use as well.

2. Insurance for delivery companies tends to be significantly higher than personal use insurance plans. This is because individual drivers register their own car under their name under a policy that takes factors like driving history and age into account. While this is not true for commercial policies, it’s important to ensure that the drivers themselves are in good standing with their auto insurance. If any of them have had their car insurance lapse in the past, you may need to look for an auto insurance company like Acceptance Insurance, who might still be able to insure them personally.

3. Commercial insurance plans have many features to protect you and your drivers that many individual plans do not have. For example, many commercial insurance plans offer options like non-owned vehicle coverage, rental reimbursement with downtime, and any auto liability. These additional coverage options can allow you to tailor your insurance plan to the kind of work you do. If you use trailers or other equipment, your insurance policy can cover these additional needs. Like traditional personal use auto coverage, your plan will cover things like injury and vehicle damage. A lot of the same big insurance companies that offer personal auto insurance will also have commercial packages, see this page from the Nationwide site as an example of what to expect:

4. If you are starting a delivery service of any variety, commercial auto insurance is crucial. Even if you use a personal truck to deliver construction supplies or run company errands, an accident or injury may not be covered if you are hit or cause an accident while on work business. To ensure your own safety and that of your company, getting a commercial policy is the best thing for your employees. If you are not sure if you need coverage for your business use, consult an insurance agent.

For anyone who has never been involved in a delivery business or any industry that requires the use of company cars, commercial auto insurance might be something unknown that seems largely unnecessary. However, business coverage is something essential for every delivery company across America. A commercial policy will cover damages, equipment, injuries and any harm that may come to an owner or employee in a company vehicle or another car or truck. These policies can be invaluable for a business owner and can protect a company and its employees from harm while driving on the job.