Everyone knows how important it is to have car insurance on a personal vehicle. First, it’s a requirement when you get an auto loan and when you register your car with the Land Transportation Office. Second, it’s meant to protect yourself from draining your finances after a road accident, natural disaster, or any event that can damage your car or cause injury to people.
As a business owner, have you ever considered getting a business car insurance policy? Understanding the importance of car insurance for business isn’t as easy as that for personal vehicles.
Yes, you need to protect the vehicle that helps run your business (including your employees, products, and equipment), especially if you’re in the van-for-hire or car rental business.
Here are three reasons why business car insurance is one of the must-have insurance types for entrepreneurs in the Philippines.
Vehicles used to transport goods and equipment spend more time on the road than those for personal use. The longer a vehicle runs, the greater its risk of getting damaged or meeting an accident.
Most of the time, the damage done to a business vehicle (or caused by it) isn’t the driver’s fault. Entrepreneurs can benefit greatly from the protection from car insurance for business vehicles.
A typical business car insurance coverage includes the following:
Some commercial car insurance policies may provide extras such as road assistance and anti-carnapping services after an accident or breakdown. Others conduct free road safety or defensive driving seminars for company drivers.
A personal car insurance policy isn’t enough to cover all the damage and injury caused by an accident involving a vehicle that you use for business. You’ll have to deal with car repairs, the legal settlement with aggrieved parties, and medical bills all by yourself. That can have a serious impact on the finances and operations of your business.
Having a business car insurance plan gives you an assurance that when something happens to your company vehicle, you’ll get fair compensation and fix your car (or buy a new one) with minimum cost to you.
Business car insurance policies cost higher than personal car insurance because of their broader coverage and the greater risks of driving a commercial vehicle. However, the protection they provide for you and your business are worth the extra penny.