Businesses that own vehicles, like individuals who own vehicles, typically need insurance for those vehicles. Businesses’ insurance needs aren’t identical to individuals’ needs, though, so insurance companies in Massachusetts offer commercial auto insurance policies.
Commercial auto insurance policies are similar to personal auto policies, which are generally underwritten for individuals. Commercial policies’ coverages, terms and conditions are adapted to better suit businesses’ risk exposure, however.
Most businesses in Massachusetts that own vehicles need a business auto insurance policy. This includes, but is not limited to, the following:
Companies that have fleets of vehicles
Delivery and transportation companies
Taxi, limousine and charter bus companies
Snow plowing, landscaping and construction companies
Companies with vehicles that are driven between multiple locations
Without coverage, businesses that own vehicles are likely violating state law and leaving themselves dangerously exposed to potential losses. Massachusetts law requires most vehicles taken on public roads to be insured, and the person or entity that owns the vehicles is generally responsible for insuring them. Additionally, businesses could face substantial liability lawsuits if a vehicle causes an accident and there isn’t insurance in place.
Although they’re normally adjusted to meet the particular risks that businesses have, the coverages contained in business auto insurance policies are often similar to those found in personal auto policies. For instance, both types of policies frequently offer:
Personal Injury Coverage, which typically covers injuries sustained by insured vehicles
Bodily Injury Liability Coverage, which typically covers injuries sustained by people who aren’t in insured vehicles
Comprehensive Coverage, which typically covers damage sustained by insured vehicles in non-collision incidents
Collision Coverage, which typically covers damage sustained by insured vehicles in collisions
Property Damage Liability Coverage, which typically covers damage sustained by others’ property
Underinsured and Uninsured Motorist Coverage, which typically covers incidents caused by drivers who aren’t properly insured
There are many other coverages that policies might offer in addition to these.
Insurance companies consider lots of different factors when calculating business auto policies’ premiums. Some of the factors that might impact how much a business pays for auto coverage are:
The size of a business’ fleet
The location where company vehicles are kept
The years, makes and models of company vehicles
The ways company vehicles are used
The driving records of employees who operate company vehicles
Just as there are lots of factors that impact business auto policies’ premiums, there are also lots of ways that businesses might save on coverage. Many insurance companies offer pay-in-full discounts, and policies purchased through package policies (i.e. business owners policies or commercial package policies) frequently come with reduced rates. Additionally, some insurers have loyalty discount, experience-based discount and/or commercial driver discount programs.
Of course, one of the best ways for businesses to reduce their auto policy premiums is to compare different companies’ quotes with an independent insurance agent. An independent agent is free to show policies from multiple insurance companies, giving businesses the information they need to select whatever policy offers the best protection at a good price.
To speak with a knowledgeable and independent insurance agent about getting commercial auto insurance for your business, contact The Feingold Companies. Our team is independent and well-versed in commercial auto policies, and we’ll make sure your Massachusetts business gets a policy that’s robust and affordable.