Commercial Insurance Archives - Charles D. Talley Jr. Insurance, Inc.

Why You Need Commercial Auto Insurance – Not Just Personal

Do your employees use their personal vehicles to transport equipment, other employees or deliver goods? This can pose a bit of a problem. Can you get by with just personal auto insurance, or do you need commercial auto insurance?

At our insurance agency in Brandon, this is a discussion we’ve had with many small business owners. A lot of them are worried that commercial auto insurance is more expensive than personal auto insurance. Others didn’t realize there were such a big difference, especially if their employees are using personal vehicles.

The reality is that personal and commercial auto insurance have significant differences. If your small business owner in Hillsborough that doesn’t operate a fleet of business vehicles, you may never have given commercial auto insurance much thought. You should know that if you’re using your own vehicle for work purposes that extend beyond commuting, then it’s time to talk about investing in a commercial auto insurance policy.

There’s a lot to talk about in this post, so let’s start by taking a closer look at the difference between these two types of auto insurance.

Commercial Auto Insurance or Personal Auto Insurance?

Our expert insurance agents will tell you that the primary difference primarily lies in the types of liabilities that each policy covers. Both personal and commercial policies will cover against vehicle repairs and medical bills following an accident. However, a commercial auto insurance policy in Florida have higher claims limits, cover a variety of different vehicles and account for the more complex legal issues that could arise from an accident involving a commercial vehicle.

If you’d like to learn more about what a commercial auto insurance policy covers, then please check out this blog post.

Why Personal Auto Insurance Usually Isn’t Enough

Personal auto insurance will only cover you if it’s an accident that occurred while using your car for personal reasons. This would include commuting to and from your place of work as well as travel that is unrelated to your normal job duties. Most personal auto insurance policies our clients purchase ensure the owner of the vehicle plus one or two immediate family members.

If you are a budding entrepreneur or sole proprietor, there are limited cases where the liability coverage from your personal auto insurance policy might be enough. This does not happen all the time. Call our agency if you’d like to ask about modifying your policy to include specific business uses.

Please keep in mind that this is would be for a very specific circumstance (ridesharing, part-time seasonal work, etc.) and not something that would apply to every business owner. That being said, this is why we see so some small business owners forgo investing in a commercial auto insurance policy. A personal policy that has been modified to cover specific business uses would typically be less expensive than a commercial auto insurance policy in Hillsborough.

Why You Probably Need Commercial Auto Insurance

Take your time reviewing these examples, because they should give you a clear picture of when commercial auto insurance is needed.

While running your business in Hillsborough, do you or your employees ever…

Deliver food or some type of product to paying customers?
Regularly drive long distances in order to meet with a client or survey a job site?
Haul equipment or tools to job sites where you’ll be working?

The Problem with Using Your Personal Vehicle to Transport Stuff

Let’s dive into each of these examples a little bit further. There’s a good reason why your personal auto insurance policy won’t cover an accident that occurred while you were transporting goods. It’s primarily because the risk is too high. For insurance companies, using a vehicle to deliver goods on a regular basis would increase your risk of getting into an accident.

Now, if you’re using your vehicle to take some of your office friends to lunch, that would be covered by your personal insurance policy. A lot of people have been asking us if they need commercial auto insurance to earn money as a Rideshare driver. This has represented a more challenging case for insurance companies. what we’re seeing now is that a growing number of insurers are offering Rideshare specific insurance policies. This type of policy would typically be cheaper than traditional commercial auto insurance. if you have some more questions about this, please contact us at (813) 685-9393.

It’s Not About the “Where,” It’s About the “Why”

So we want to make it clear that there is no limit to how much you can drive under a standard personal auto policy. That is as long as it’s for personal reasons.

Let’s look at a real world example from a small business in Tampa. This business employs a sales manager who regularly uses their personal vehicle in our to visit sales lead locations around the entire county of Hillsborough. If this employee gets into an accident on one of their sales runs, you could be facing significant liability.

What You’re Hauling Matters Too

As we mentioned before, commuting to a job is covered by personal auto insurance. Transporting heavy tools or equipment as a part of your commute is another matter. For example, a construction worker is using their personal vehicle to transport a trailer full of expensive, ladders, drills, etc. To an insurance company, this is a dangerous scenario due to the higher risk of property damage and theft compared to the average commuter. If that sounds familiar, you should speak to an insurance agent about commercial auto insurance.

Hired and Non-Owned Auto Insurance

There’s another type of insurance we wanted to cover briefly in this post and that is hired and non-owned auto insurance. This type of policy will cover vehicles that are used for business, but that your business doesn’t actually own. This includes…

Vehicles that are owned by employees and used for business errands
Vehicles that you rent for business

Hired and non-owned auto insurance would be used in a situation where you have an employee that is running an errand with their car and get into an accident. Say you send your assistant out to purchase some supplies and they end up rear-ending someone on the way back to the office in Tampa. If you didn’t have the right commercial auto insurance, your company could be liable for the resulting damages.

Modifying Your Auto Insurance Policy in Hillsborough

This blog post should have answered many of your questions when it comes to commercial auto insurance versus personal auto insurance. That being said, there are a lot of unique circumstances that could be impacting your situation. There’s no way for us to cover all of them in this post, so we do encourage you to contact our agency if you would like to learn more and you’re a business owner in Florida.

If you’re only using your car occasionally for business purposes, then an expert insurance agent might be able to modify your personal auto policy so that it covers these work-related uses. We’re often asked if commercial auto insurance is more expensive than personal auto insurance. While it may be more expensive to purchase a commercial auto insurance policy initially, the money it could save your business is significantly greater. A Florida business that relies on vehicles to operate can’t afford to not have a commercial auto insurance policy.

Charles D. Talley Jr Insurance Inc has been helping business owners in Hillsborough for over 35 years and we can help you too. if you have more questions about Commercial Auto Insurance or would like to save money on a better policy, then please contact us today at (813) 685-9393.

June 22, 2019/0 Comments/by ctalley

Commercial Insurance, News

What Does Commercial Auto Insurance Cover?

If you use a vehicle for work in Florida, then you should consider getting commercial auto insurance. If you’re not familiar with this type of insurance policy, then you have come to the right place. This post will show you exactly what commercial auto insurance covers and why it is such an important investment.

Most people aren’t surprised that semi-truck drivers need to have commercial auto insurance. The same typically goes for dump truck drivers and even food trucks. Where our insurance agents often see issues are with business owners who use their personal vehicles for work in one way or another. They believe things will be fine because their vehicle is covered under their personal auto insurance policy.

That is a line of reasoning that could lead to significant problems down the road. Please read on to see why…

What’s Included With Commercial Auto Insurance Coverage in Florida?

It is understandable why there is some confusion here for business owners in Hillsborough. A commercial auto insurance policy includes several types of coverage that should sound familiar to anyone with a personal auto insurance policy. These include:

Liability Coverage

This type of coverage would kick in if an employee caused bodily injury to another person while driving the covered vehicle. This coverage also includes property damage liability that would pay for any damages done to the injured party’s car or other property.

Note that while these liability coverages are typically separated out in personal auto insurance policies, they are combined into a single liability limit in a commercial auto insurance policy.

Medical Payment Coverage

Sometimes referred to as personal injury coverage, this would pay the medical expenses incurred by an employee driver and/or any passengers that were in the covered vehicle. Medical payment coverage will be applied regardless of who was at fault in the car accident.

Collision Coverage

This type of coverage will be used to pay for the damages inflicted to your commercial vehicle in an accident. Just like with the medical payment coverage, collision coverage will be applied regardless of who was at fault in the car accident.

Comprehensive Coverage

If you were wondering what would happen if one of your vehicles were damaged in a hurricane, then that’s where comprehensive coverage comes to the rescue. This type of coverage will be used to pay for damages sustained from theft, vandalism, mother nature or other non-crash incidents.

Uninsured Motorist Coverage

What happens if one of your delivery trucks gets backed into by someone who has no insurance? This could be a bad day just waiting to happen, but it doesn’t have to be if that truck is covered under a commercial auto insurance policy in Hillsborough. Uninsured motorist coverage would pay for those damages.

Specialized Coverages in Commercial Auto Insurance Policies

So now that’s out of the way, you should also familiarize yourself with the more specialized types of coverage that you wouldn’t see on a personal auto insurance policy.

Trailer Interchange Coverage – If you are hauling trailers with your commercial vehicles that are owned by other companies, then you’ll be happy that you have this type of coverage.
Rental Reimbursement with Downtime – This will be used to cover any costs your business incurs to rent a temporary replacement for a vehicle that is undergoing repairs.
Hired Vehicle Coverage – If you need to rent a car or van for your employees (or possibly for a client), commercial auto insurance provides hired vehicle coverage.
Non-owned Vehicle Coverage – This is a very important type of coverage. Some business owners in Hillsborough have employees use their own cars when conducting business. If they end up getting into an accident while operating their vehicle for work, you would be held responsible as the business owner. Non-owned vehicle coverage is included in commercial auto insurance policies for this reason.

Do You Need Commercial Auto Insurance if You Have Personal Auto Insurance?

As mentioned before, there are still plenty of business owners that mistakenly believe commercial auto insurance isn’t worth the investment if they have personal auto insurance.

To illustrate why this doesn’t work, you need to think of your auto insurance policy as a contract you have with your insurance carrier. They agree to cover damages inflicted on your car in an accident granted that you are using it for personal reasons. If you use the car for business reasons, then you are violating that contract. This gives your insurance carrier ample reason to reject your claim.

A commercial auto insurance policy differs from personal auto insurance in several distinct ways, including:

A commercial auto policy will have a higher liability limit than a personal auto policy
The cost of your commercial auto insurance policy is tax-deductible
A commercial auto policy can be used to cover specific named employees or blanket coverage can be applied for all employees
A commercial auto policy includes additional coverage for equipment like trailers and forklifts (something that personal auto insurance won’t include)

Do You Need Commercial Auto Insurance as a Rideshare Driver in Florida?

Driving for a rideshare company like Lyft or Uber is a viable way to earn a living, but the job comes with some extra considerations when it comes to auto insurance. The first thing to note is that rideshare drivers in Florida are required to have their own auto insurance policies. This is because there will be times you’ll be driving when not actively logged in to the rideshare app as a driver.

So do you really need a commercial auto policy as well? An insurance expert would say “yes” and here’s why. An insurance carrier can deny coverage to you during the time that the rideshare app is on.

For the time when you are driving with the app on, the state of Florida requires you to carry a higher insurance limit. Drivers can purchase the necessary insurance coverage themselves, but it is notable that companies like Uber and Lyft are required to provide coverage for any drivers with insufficient policy limits. Here are the specifics for when you have the rideshare app on:

When there is no passenger assigned – At least $50,000 of bodily injury coverage per person, $100,000 of bodily injury coverage per accident and $25,000 of property damage liability coverage per accident.
When there is a passenger assigned – You’ll be covered by the company’s third-party liability insurance policy, with at least $1 million coverage for bodily injury and property damage.

If you want full coverage while working as a rideshare driver, you should call us at (813) 685-9393. There are certain requirements that these companies have in order for their drivers to qualify for comprehensive coverage. This working situation can be stressful and confusing, so it is recommended that you speak to an insurance expert.

Additional Information for Business Owners

Commercial auto insurance is a great investment for any Hillsborough business owner who relies on vehicles in their day to day operations. Just remember that it won’t cover an employee who gets in an accident while driving their own personal vehicle. A simple errand could result in a significant accident and your business could be held liable.

If you are ready to make that investment, we can get you a commercial auto insurance quote ASAP. Complete our online form to get started or give us a call at (813) 685-9393. Our insurance agency has been helping Hillsborough business owners protect their livelihoods for over 35 years and we’d like nothing more than the opportunity to help you.

June 7, 2019/0 Comments/by ctalley

Commercial Insurance, News

Hurricane Season: Is Your Business Protected?

Hurricanes can occur at any time at any time of year, but Florida and the rest of the Atlantic region, the season begins on June 1st and last until November 30th.

While hurricane season is stressful for anyone in the storm’s path, business owners have a host of additional concerns that come into play. As insurance agents in Brandon, FL, we are familiar with all the nuances of hurricane preparedness for business owners.

Developing a Hurricane Action Plan

As with many things in life, the best defense is to go on the offensive before the storm hits. Long before the threat of a hurricane is imminent, your business should have a Business Continuity Plan in place. This document, also called a Disaster Recovery Plan, should be tailored to your business’s unique needs.

It should address natural disaster risks that are unique to the Tampa Bay area, and your neighborhood specifically. This should take into account everything from your flood zone, which can be found on the FEMA website, to the material comprising your office building. It should also identify critical operations and how employees and management will communicate during the disaster.

Remember, this plan should be shared with employees. If you discuss your hurricane preparedness plan before a storm is imminent, it will be easier for everyone to digest the information with a clear head and calm demeanor. That way, they (and you!) will be ahead of the curve if it is actually needed.

How to Get Your Business Prepared for a Hurricane

When you know a storm is approaching, the active part of hurricane preparation begins. Utilize your knowledge of the storms timeline to prioritize the items on your timeline. This includes data-related preparation such as backing up all your files and uploading company information to the cloud. When this is done correctly, a company should be able to have all of its computers destroyed and still have access to all of its necessary electronic information.

In addition to preparing your electronic assets, you must prepare your company’s physical assets as well. Make sure you have implemented any necessary means of hurricane protection, including:

Getting electronics and other valuables up high
Putting furniture on cement blocks
Boarding up windows
Placing sandbags in strategic places to prevent flooding

Last but—as any business owner knows—far from least, you must protect your financial assets. Sadly, natural disasters are a prime opportunity for theft, so this should be prevented or at least mitigated to the best of your ability.

Make an inventory of your business assets, from electronics to vehicles, to merchandise and other supplies. Depending on your business, you may be able to get some of these items to a safer place.

The Assurance of Quality Insurance

No amount of preparation can guarantee your Tampa area business will be 100% safe from Mother Nature, but you can rest assured knowing you have excellent insurance coverage. It’s a good idea to secure commercial property coverage, which would allow you to rebuild if necessary. Even if you rent your building, commercial property insurance can be purchased to protect your contents and any improvements you have made to your leased space. In some instances, wind coverage will be excluded by your carrier. In this event, you would need to purchase a separate policy to cover for the peril of wind.

Flood insurance is also a necessity for most Florida businesses, especially if your business is in a Special Flood Hazard Area (SFHA). According to FEMA, “the SFHA is the area where the National Flood Insurance Program’s (NFIP) floodplain management regulations must be enforced and the area where the mandatory purchase of flood insurance applies”.1 Banks will require you to have flood insurance, if you got a loan to purchase your building and it’s located in an SFHA.

If your business is severely damaged by a hurricane, you will need to spend time cleaning, repairing, and potentially rebuilding. During this time, you will also need a paycheck! Don’t forget to ask your Brandon insurance agent about Loss of Business Income coverage. This protects your business from lost income, by not being able to continue normal operations due to a covered claim. In most instances your deductible for this type of coverage is calculated in hours, not a specific dollar amount. A common deductible would be 72 hours of business interruption, before the coverage would kick in.

Conclusion

As a business owner, you want to do everything in your power to minimize loss and restore your usual operations as quickly as possible. It’s critical to be prepared logistically and physically, and to have insurance coverage that will protect you financially.

When it comes to that last item, we are happy to help. As a family-run insurance agency here in Brandon, FL, we understand the importance of your business and will do everything in our power to help you protect it. Please give us a call at 813-685-9393 or get a free quote by completing our online form.

September 21, 2018/0 Comments/by ctalley