Automobiles are costly assets. According to the Federal Highway Administration, in 2019, 93% of American households had access to at least one car. Between 2012 and 2019, the number of registered vehicles fell by more than 25 million.
As a result, buying, maintaining, and selling them necessitates attention to detail and proper Florida commercial auto insurance coverage. Many of Florida's 2.5 million small businesses require commercial auto insurance to protect themselves from liabilities arising from various incidents involving their work vehicles.
Personal auto policies typically do not cover vehicles used for business because they are subject to greater liability than personal vehicles. Read on to know more about the cost, coverage, and requirements of commercial auto insurance in Florida.
There are many different types of commercial vehicles, so let's look at some basic requirements for everyone and some optional coverages based on your industry.
In Florida, all drivers are required to carry:
If you drive a taxi, you must carry significantly more coverage of:
Furthermore, Florida and the Federal Motor Carrier Safety Administration (FMCSA) have additional requirements for cargo and shipping vehicles. If you are only transporting goods in Florida, the following commercial trucking insurance minimums apply:
According to data, the maximum and minimum commercial auto insurance policies in Florida as of 2021 range from $2,565 to $3,370 per year.
The following are the approximate annual policy costs for various commercial vehicle types:
Knowing the different types of auto insurance and their coverages is important in getting the right policy for you if you want to cover your bases and get your commercial vehicles insured. Here are some of the most common types of car insurance, how they work, and what they cover:
Below are some of the frequently asked questions regarding commercial auto insurance:
For instance, your business may be held responsible for property damage and bodily injuries stemming from a traffic collision where one of your workers was at fault if they use their own vehicles to travel to clients for business purposes.
Business owners occasionally are unaware of their exposure. Think about these instances:
-On the way back from lunch, your office manager makes a stop at the office supply store to pick up a few things for the office.
-A supervisor leaves a product sample at a client's office on the way home.
-A salesperson in his personal automobile makes a quick stop to see a customer while on vacation.
Whether it's the owner's personal car or a fleet of vehicles the firm owns, any Florida business that employs automobiles for work needs commercial vehicle insurance.
You are covered by your personal auto insurance when traveling to and from work, but not when making deliveries, gathering supplies, or engaging in other activities related to your place of employment. If you cause an accident while on business, a business auto policy would protect you and your personal vehicle.
Regardless of whether you own a single pickup truck, a food truck, a fleet of semi-trucks and tractor-trailers, or anything in between, any cars you own solely for work reasons must be protected by a commercial auto policy.
Some business uses of personal vehicles are covered by the owner’s personal auto policy. In a similar vein, certain work use of your employees' automobiles is covered by their personal auto policy as well (depending on the type of business).
Even if not specifically excluded, the way you use your car might not pose a risk the insurance provider is willing to take on under personal auto coverage. When a usage poses too much danger, the insurance provider may impose a higher premium, decline to issue coverage, or terminate policies. A commercial auto policy can be the best option in these circumstances.
Reliable commercial or business auto insurance remains competitive in small and large enterprises. However, finding the right commercial auto policy can make a big difference in your business's future.
To learn more about bond insurance policies, license and permit bonds, and surety bonds for your business in Texas, read through our blogs at Assured Standard and grasp what smart long-term business solutions could look like.