Running a small business in California comes with various responsibilities, and protecting your assets is one of the most crucial. One often-overlooked aspect is commercial auto insurance. This type of insurance isn’t just an optional add-on—it could be essential for your operations and legal compliance. Below, we’ll explore which businesses need it, the legal requirements in California, and the key advantages of securing coverage for your commercial vehicles.
Does My Business Need Commercial Auto Insurance?
If your business uses vehicles for work purposes beyond personal commuting, you likely need commercial auto insurance. Companies that rely on vehicles for deliveries, transporting goods, or providing mobile services fall into this category. For example, if you own a landscaping company, use vehicles for catering, or run a local delivery service, commercial auto insurance is a must. Additionally, ride-sharing businesses and contractors who transport tools or equipment may also require coverage.
Even if the vehicle is owned personally but used for work, your personal auto insurance may not cover accidents that occur during business activities. Therefore, protecting your vehicles and employees ensures that your business avoids liability risks in case of an accident.
Legal Requirements for Commercial Auto Insurance in California
California law mandates minimum insurance requirements for all vehicles, including those used commercially. As per state regulations, your business vehicles must carry:
- $15,000 for injury or death to one person.
- $30,000 for injury or death to more than one person.
- $5,000 for property damage.
However, commercial vehicles often carry higher risks due to their frequency of use and the type of cargo they transport. This is why many businesses opt for higher coverage limits to adequately protect against potential financial losses.
California also requires certain businesses, such as trucking companies, to comply with additional regulations. For instance, businesses that transport hazardous materials or operate large vehicles may need specific policies that meet federal and state guidelines.
Benefits of Commercial Auto Insurance
1. Financial Protection Against Accidents
Accidents happen, even to the safest drivers. Commercial auto insurance provides financial coverage, whether it’s for repairs, medical costs, or legal fees. Without this coverage, your business could face significant financial losses.
2. Liability Coverage
If one of your business vehicles causes an accident, you could be held liable for damages. Commercial auto insurance ensures that your business is protected from liability claims, helping you avoid costly lawsuits.
3. Protection for Employees
If your employees drive for work purposes, commercial auto insurance protects them as well. This includes covering medical expenses and lost wages if they’re injured in an accident.
4. Comprehensive Coverage for Various Incidents
From theft to vandalism, commercial auto insurance covers more than just accidents. This comprehensive protection is especially vital for businesses that store vehicles overnight or transport high-value goods.
5. Peace of Mind
Insurance allows you to focus on growing your business without worrying about potential risks. Knowing your vehicles and employees are protected gives you confidence in your day-to-day operations.
Choosing the Right Policy for Your Business
When selecting a commercial auto insurance policy, it’s important to evaluate your business’s unique needs. Consider factors such as:
- The number of vehicles used for business.
- The types of vehicles in your fleet.
- How and where the vehicles are used.
- The value of the goods transported.
Working with a trusted insurance provider like Delgado’s Insurance can help you assess your specific requirements and find the best policy to safeguard your business.
Stay Protected with Delgado’s Insurance
Navigating insurance policies can be challenging, but it doesn’t have to be. Delgado’s Insurance specializes in providing affordable and reliable insurance solutions to California residents and small businesses. Protecting your commercial vehicles ensures your business stays compliant with the law while minimizing potential risks.
Delgado’s Insurance: Dependable Insurance in California
If you need dependable and affordable insurance in the Golden State, look no further than Delgado’s Insurance.
We have locations in Riverside, California, and Bloomington, California. Get in touch today by telephone (951-361-0084, 909-421-9003), email (mail@delgadosinsurance.com), or through our social media accounts (Facebook, Twitter, and LinkedIn)!
