Is Commercial Insurance Necessary for a Delivery Service?

Many businesses are turning to delivery services as a result of current times. Offering delivery services allows your business to reach a new segment of customers. However, this does come with some risks.

As part of your delivery service, you’ll need a fleet of vehicles to transport the items to your customers. You’ll need reliable coverage to protect you if something goes wrong while you’re on the road. As a small business owner, your personal obligations often conflict with your professional responsibilities. As you start to set up your delivery service, you may incorrectly assume that your personal auto insurance will cover your vehicle while you’re out on the road working. This is incorrect, as your personal auto insurance does not serve as a commercial policy. In order to fully protect your business, you need commercial auto insurance.

  • Liability Coverage Offered by Commercial Auto Insurance

    As you research commercial insurance in Portland, OR, you will learn that these policies have higher liability limits than traditional auto insurance policies. Commercial policies protect you if you are involved in an accident and damage someone’s property or cause someone to get injured. Accidents can happen in a split second while you’re on the road, which is why you need commercial coverage to protect your business from financial damage. Liability coverage also protects any equipment that you purchase alongside your vehicles, such as trailers. The policy also covers your employees while they are on the road working.

  • Possible Exclusions for Auto Insurance for Delivery Vehicles

    Once you obtain auto insurance for your delivery vehicles, you’ll have to think about possible exclusions. The goal is to minimize risks that could put your business in jeopardy. Many personal policies will exclude the use of a vehicle by someone employed or involved in a business. Personal auto insurance also excludes any vehicles that you use to transport property. If you are involved in an accident, your insurer may seek to deny your claim based on these exclusions.

  • Covers Customized Auto Insurance Risks

    You can customize your commercial auto insurance policy to cover you against special risks that you face operating a delivery service. Perhaps you accidentally cause damage because you are traveling from one location to another within a short amount of time. Maybe you are exhausted from traveling a long distance. Fatigue causes you to take your eye off the road, and you hit someone. Perhaps you decide to hire inexperienced drivers to your fleet, and they have a few shaky moments while on the road. There are all things that you have to consider when choosing a policy. If there are some situations where your employees need to make deliveries in their own vehicles, you can inquire about a non-owner insurance policy.

Consult with the Action Insurance Group for Commercial Insurance Coverage

Commercial auto insurance can ensure peace of mind even if an issue arises.  You can focus on growing your business and maximizing profits. If you have any questions about your policy, our insurance experts at Action Insurance Group will assist you.

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