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For small businesses, transportation-related risks are an ongoing concern, especially when employees rely on personal vehicles for business tasks. Car accidents pose serious risks, whether meeting clients, making deliveries, or doing significant work. In fact, according to the National Safety Council, 40% of all traffic accidents are work-related, making it clear that small businesses need to address this risk to safeguard their operations.
While owning a fleet of vehicles may seem like an obvious solution, the cost and administrative burden can often outweigh the benefits. Instead, many small businesses are exploring alternative ways to manage auto risks without needing a company-owned fleet. The key to this strategy is understanding the importance of business insurance and choosing the right coverage to mitigate potential liabilities.
Small businesses often rely on employees’ vehicles to carry out work duties. Studies show that traffic accidents are on the rise, and the cost of these accidents is steep. Traffic fatalities reached a 20-year high in 2022, and small businesses are particularly vulnerable, with auto-related claims consistently among the leading causes of liability issues. Without the right insurance, these incidents can become a financial burden that a small business can’t afford.
According to the U.S. Small Business Administration, 15% of all liability claims stem from auto-related incidents. This is an alarming statistic for businesses that don’t own fleets but still require vehicle use for operations. How can small businesses protect themselves from auto-related risks while avoiding the expense and complexity of fleet management?
Many small businesses have succeeded by relying on business insurance policies to manage auto-related risks, even without owning a fleet. Here are a few key types of insurance that companies should consider:
One of the best ways for small businesses to protect themselves is through Non-Owned Auto Insurance. This policy covers your business if an employee uses their vehicle for business purposes. While the employee’s auto insurance may cover their vehicle in case of an accident, Auto Insurance provides that your business is protected from liability issues, including property damage, injuries, or legal expenses from a work-related accident.
This Insurance is crucial for businesses that occasionally rent or lease vehicles. This coverage extends to vehicles not owned by the company but used for business activities.
When businesses hire or lease vehicles, they may not realize that their current insurance may not cover accidents involving these vehicles. This policy helps cover the potential liabilities of accidents involving rented or employee-owned vehicles during business use.
If employees use their vehicles for work tasks, it’s important to have Workers’ Compensation Insurance in place. This policy covers employees who get into an accident while on the job, including medical expenses and lost wages.
By protecting employees, this policy helps ensure that the business complies with state regulations and safeguards itself from costly lawsuits.
While General Liability Insurance doesn’t cover auto-related accidents directly, it is still essential for covering other types of third-party claims, such as property damage or injuries caused by employees while using their vehicles for work. It’s a useful policy for small businesses that want comprehensive coverage to protect against potential incidents.
Even if your business doesn’t operate a fleet, Business Auto Insurance is necessary if you own any vehicles for business use. Whether for deliveries or other business purposes, having Business Auto Insurance ensures that your vehicles are covered in accidents, property damage, or legal liability.
The rising cost of traffic-related accidents is a significant reason small businesses must review their insurance needs. Commercial auto insurance premiums have increased by 50% over the past decade. Between 2018 and 2020, premiums for very large fleets rose by 78%, leaving businesses scrambling to adjust their policies.
It’s not just the direct costs of accidents that businesses must consider—indirect costs, such as damage to reputation, loss of productivity, and employee downtime, can also have a significant impact. The Network of Employers for Traffic Safety reports that over 200,000 crashes in 2018 resulted in at least one lost workday.
The reality is that auto-related risks are part of doing business, no matter the size. According to the U.S. Small Business Administration, 40% of small businesses will experience a major loss or incident, with auto accidents being one of the leading causes. Without the proper coverage, businesses risk major financial setbacks, including lawsuits, medical expenses, and property damage.
In addition to auto insurance, other essential types of coverage can protect your business from a range of risks:
At Insure Your Company, we understand the specific challenges that small businesses face when managing auto risks and other liabilities. As a trusted insurance provider, we offer customized solutions that meet the unique needs of your business. Whether you’re looking for Non-Owned Auto Insurance, Business Auto Insurance, or Workers’ Compensation, we can help you find the right coverage to protect your business and employees.
As one of the leading business insurance providers, Insure Your Company has a wealth of experience helping businesses like yours navigate the complexities of auto-related risks. We’ll work with you to ensure your business is fully covered, allowing you to focus on what matters most: growing your business.
Visit Insure Your Company for a personalized quote and ensure your business is protected with the right insurance coverage.
The most common types of business insurance include General Liability Insurance, Professional Liability Insurance, Workers’ Compensation, and Auto Insurance.
Yes, most businesses need several types of insurance to protect against various risks fully, depending on the scope of their operations.
Certain types of business insurance, such as Workers’ Compensation and Auto Insurance, may be legally required depending on your state and industry.
General Liability Insurance and Professional Liability Insurance protect against lawsuits involving third-party injuries, property damage, and service errors.
Insurance costs vary based on your business size, industry, and location. Small businesses pay between $400 and $1,500 annually for General Liability Insurance.
Without the right insurance, your business could be exposed to significant financial risks, including lawsuits, property damage, and employee injuries.
Yes, Insure Your Company offers customizable policies tailored to meet the unique needs of your business.
We believe in supporting our clients through every step of the insurance process. From choosing the right coverage to filing a claim, we are here to offer guidance and support. Request a free quote today and get coverage that meets your unique needs.
