Whether driving in a nor’easter or on a sunny summer day, the risk of an accident is ever present. If your employee gets in an auto accident while in a company vehicle or conducting company business, your business may be held liable for the damages. If you or your employees drive as part of the job, you may need commercial auto insurance to protect your company.
Massachusetts is a no-fault auto insurance state; if there is an accident, each party files a claim with their own insurance company for medical payments and property damage. However, there are some situations that allow lawsuits to be filed, including permanent serious injury, and medical expenses exceeding $2000. If the accident occurred while the driver was conducting company business, your company – and your business auto insurance – could be responsible for the damages to your own vehicle and employee, as well as any legal fees and damages that follow. Investing in proper insurance coverage can help protect your business if an accident occurs.
Like many other states, MA requires that all vehicles be properly registered and insured in order to legally operate them. This requirement holds for commercial vehicles as well. If your company owns vehicles for business use, you must confim with your agent that you have at least the minimum insurance coverage, including:
These are minimum coverages designed to provide basic coverage for all drivers. However, as a business with more assets, it’s often wise to invest in more insurance in case you are subject to a lawsuit.
If your company does not own vehicles but uses employee vehicles for business use, you may still benefit from purchasing insurance for these vehicles. Many personal auto policies may not cover accidents caused during business use. Even if it is covered, there may not be enough to protect your business from expensive lawsuits if the accident is severe.
While the state legal minimums ensure that all drivers carry some liability, property, and medical payments coverage, many companies opt to buy additional coverage options for more comprehensive protection. Some popular options include:
Depending on your specific vehicles, equipment you carry, and other factors, you may need to purchase additional insurance endorsements for full coverage. Your agent can help you determine what type of coverage is right for your business based on usage, drivers, vehicles, and other factors.
Massachusetts requires that all vehicles be minimally insured, for the protection of all drivers. With winter storms, unpredictable traffic, and other risks on the road, an accident may happen at any time, even to the best of drivers. By investing in commercial auto insurance for company and employee-used vehicles, you can find better financial protections for your business in the case of an accident