Commercial auto insurance covers legal bills, medical expenses, and property damage if a business vehicle is involved in an accident.
Your employees may be skilled drivers, but accidents can happen to anyone. A collision could lead to another motorist getting injured, or your landscaping truck or van being totaled.
An auto accident could cost your small business thousands of dollars, especially if someone is injured. Compare that to the median premium of about $150 per month for landscaping businesses, and it’s easy to see why commercial auto insurance is the better deal.
Commercial auto insurance can help pay for lawsuits, property damage, and medical fees that arise from an accident involving a company vehicle. It also covers theft and vehicle damage from weather events and vandalism.
As a landscaping business owner, this policy can be tailored to fit your needs. For example, a tree service bucket truck that is used only occasionally may need less coverage than a pickup truck that transports tools on a daily basis.
Company-owned vehicles such as tree trimming trucks or a lawn care company’s fleet of vans must be covered by commercial auto insurance.
Commercial auto insurance may be required if you:
State regulations determine how much coverage you need. Your commercial auto insurance must meet your state’s liability insurance requirements.
If your landscape design firm or other landscaping business is sued over an auto accident, legal expenses can pile up fast. You may also have to pay a settlement or court-ordered judgment.
If an accident injures the driver of your landscaping business vehicle, or any passengers, your policy can cover the cost of medical care.
Collision coverage pays for damage to your truck or other work vehicle, regardless of who is at fault.
This coverage pays for damage caused by uninsured drivers.
Comprehensive insurance covers non-collision damages, including fire, theft, and vandalism.
Commercial auto insurance only covers business-owned vehicles, but sometimes employees drive their own cars for business errands. Personal auto policies almost always exclude coverage for business use.
Hired and non-owned auto insurance provides liability coverage for lawn mowing companies, tree trimmers, and other landscaping experts who get into an accident while driving a personal vehicle to conduct company business. It also covers leased and rented vehicles.
While commercial auto insurance is a must-have for small businesses that depend on a landscaping truck or van, it does not cover risks beyond those related to your vehicle. Owners of landscaping businesses should also consider:
General liability insurance: This policy can cover expenses related to third-party bodily injury, property damage, and advertising injury.
Workers’ compensation insurance: Required in almost every state for landscaping businesses that have employees, workers’ comp can cover medical fees and lost wages for work injuries.
Contractor’s tools and equipment insurance: This policy helps pay for repair or replacement of a landscaping contractor’s equipment and tools if they are lost, stolen, or damaged.