Commercial Insurance Made Simple: Quick Tips for Busy Business Owners

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A Guide On Commercial Motor Insurance In Australia

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Commercial motor insurance covers vehicles used to run your business. It could be a small van used to deliver orders or an excavator used in your construction site. Although this cover is popular in Australia, most business owners hardly take an interest in the coverage. Below are a few things to know about commercial motor insurance. 

What Does Commercial Motor Insurance Cover? 

Insurance companies have different covers to suit your business needs. The basic policy, legal liability coverage, compensates third parties whose vehicles or property suffer damage due to your commercial vehicle driver's negligence. Moreover, the cover also compensates people who suffer injuries during a car accident for which your driver bears liability. They could be passengers, pedestrians or other road users. However, the cover does not cover the driver and the vehicle. Fire, theft and legal liability coverage is advantageous because you receive compensation if your commercial vehicle is stolen or suffers a fire. 

While a comprehensive cover is more expensive than the policies mentioned above, it covers many risks. Moreover, it covers the driver and the vehicle. Therefore, you do not incur car repair or hospital expenses if the commercial vehicle suffers an accident. 

What Are The Benefits Of Commercial Motor Insurance? 

The primary benefit of commercial motor insurance is that it helps you avoid legal liability in case your commercial vehicle causes an accident. Remember, car accident liability claims can cripple your business. Moreover, you risk ruining your business reputation if your customers and the public know that your commercial vehicles do not have insurance coverage. Professional associations sometimes compel their members to ensure their cars have commercial motor insurance. Otherwise, members risk deregistration or severe penalties. 

Considerations When Taking Commercial Motor Insurance

When applying for commercial motor insurance, your first task is ensuring that you deal with a reputable insurer that can offer personalised services. Internet reviews, accreditations from government agencies, awards, referrals from other businesses and online ratings are a sure way to compare the quality of services offered by the different companies. Then, decide whether to insure a single vehicle or take fleet insurance. Typically, fleet insurance tends to be a bit cheaper than taking individual covers for each of your business vehicles. 

Next, assess the premium calculation formula used by the insurer. It is an opportunity to lower commercial vehicle insurance premiums. For instance, your could service the vehicles and present inspection reports to prove that your cars are in excellent condition. Finally, update your cover to suit changing business needs. For instance, inform the company when carrying high-risk freight to prevent underinsurance. 

For more information, reach out to a local insurance agency, such as Westralian Insurance.