A business owner has many must-have expenses. Commercial auto insurance is a crucial investment for businesses that own or operate a fleet of vehicles. It may seem like an additional expense. However, the benefits of commercial auto insurance outweigh the costs. 

Here are six important reasons why you need commercial auto insurance for your business fleet.



1. Liability Coverage. Commercial auto insurance provides liability coverage that protects your business from financial losses if there is an accident and your employee is at fault. It covers damages to other vehicles, property, and medical expenses for injured parties. Without adequate coverage, your business could be held responsible for substantial costs, which can have a significant impact on your financial stability.
2. Protection for Your Vehicles. Commercial auto insurance covers damages caused by your drivers to third parties and also provides coverage for your vehicles. Covered losses include collision, theft, vandalism, or other covered perils, having insurance ensures that you can repair or replace your vehicles without incurring substantial out-of-pocket expenses.
3. Employee Protection. If your business fleet has employees driving company vehicles, commercial auto insurance protects your business and your employees. After a covered accident, your employees are covered for medical expenses and potential liability claims. 
4. Compliance with Legal Requirements. Commercial auto insurance is mandatory in the State of Maryland! *** The minimum is $36,000 for Bodily Injury/$60,000 for two or more people and $15,000 for Property Damage. 
5. Coverage for Non-Owned and Hired Vehicles. Commercial auto insurance can also provide coverage for vehicles that your business rents or leases, also for vehicles owned by employees that are used for business purposes. This coverage extension gives additional protection in situations where your business may not have direct ownership but still needs to manage the associated risks.
6. Business Continuity. Following an accident, commercial auto insurance ensures business continuity. Proper insurance coverage gives quicker recovery from financial losses and property damages so your business can continue its operations without significant disruptions. This stability and protection are crucial for maintaining client relationships, meeting deadlines, and minimizing downtime.

Commercial auto insurance is a vital investment for businesses with a fleet of vehicles. It provides essential liability coverage, protects your vehicles, ensures employee safety, helps you comply with legal requirements, extends coverage to non-owned and hired vehicles, and contributes to business continuity. By securing commercial auto insurance, you safeguard your business from significant financial losses and mitigate potential risks associated with operating a fleet, allowing you to focus on running your business with confidence and peace of mind.

Lindquist Insurance has coverage for business vehicles. Call (301) 694-0008 to speak to our experienced and licensed insurance agents for a consultation and quote. We can work with you on getting the proper coverage that is needed and that meets state requirements. There will be no gaps in coverage and all of your vehicles and liability will be covered. 

We serve the Annapolis, MD, and Frederick, MD areas.

*** For more information on commercial fleet insurance, visit the State of Maryland website.