Commercial auto insurance covers legal bills, medical expenses, and property damage if a business vehicle is involved in an accident.
An auto accident could cost your small IT business thousands of dollars, especially if another person is injured. Compare that to the median premium of about $200 per month for technology companies, and it’s easy to see why commercial auto insurance is the better deal.
Commercial auto insurance helps cover the cost of lawsuits, property damage, medical bills, and other expenses arising from an accident. It also provides coverage if your vehicle is stolen or damaged by weather or vandalism.
Your policy can be tailored to match your needs. For example, a network security truck driven once a week requires less coverage than a computer repair van that's driven daily.
Business-owned vehicles such as service vans and company cars must be covered by commercial auto insurance.
You may need commercial auto insurance if you:
State regulations determine how much coverage you need. Your commercial auto insurance must meet your state’s liability insurance requirements.
Beyond your state's requirements, you can choose the extent of coverage for company vehicles at your IT consulting business, software development company, or other tech firm. Your policy may cover:
If your web design company or other IT business is sued over an accident, legal defense fees can add up quickly. Commercial auto insurance covers attorney’s fees and related expenses.
If an accident injures the driver of your company vehicle or a passenger, your policy can cover the cost of medical care.
Collision coverage pays for damage to your technology company vehicle, regardless of fault.
This coverage pays for damage caused by drivers who don’t have insurance.
Comprehensive insurance covers non-collision damages, including vandalism, theft, and fire.
Commercial auto insurance only covers business-owned vehicles, but sometimes employees drive their own cars for work errands. Personal auto policies almost always exclude coverage for business use.
Hired and non-owned auto insurance provides liability coverage for IT consultants and other tech professionals 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 companies that own a vehicle, technology business owners should also consider:
General liability insurance: This policy can cover expenses related to client injuries and property damage, along with advertising injuries like slander. Technology businesses can often bundle it with property insurance for savings in a business owner’s policy.
Errors and omissions insurance (E&O): This policy is critical for IT consultants and other technology experts. Also called professional liability insurance, it covers lawsuits related to work performance, such as a mistake that causes a client’s server to crash.
Cyber liability insurance: Any business that stores sensitive data should strongly consider cyber insurance. It helps pay for the aftereffects of a cyberattack or data breach.
Fidelity bonds: IT companies are often privy to sensitive client data. This means an employee could jeopardize your business by engaging in unlawful access, theft, or fraud. Fidelity bonds safeguard your business against employees who engage in certain criminal acts.
Workers’ compensation insurance: Most states require technology businesses with employees to purchase workers’ compensation. This policy covers medical bills and partial lost wages from work-related injuries and illnesses.
Are you ready to safeguard your IT company vehicle with commercial auto insurance? Complete Insureon’s easy online application today. Once you find the right policy, you can begin coverage in less than 24 hours.