How Often Should You Review Your Commercial Auto Coverage? 

Commercial auto insurance is an essential investment in your business’s financial interests and fiscal stability. Additionally, policies are typically required by law. As such, lacking appropriate coverage could expose your company to costly financial consequences, including noncompliance fines, lawsuits and unbudgeted repair costs. That’s why you need to retain a suitable policy and revisit it appropriately to maintain coverage that suits your needs.

When Should My Business Revisit its Policy?

Like many other types of insurance, commercial auto policies must often be adjusted. Your company’s needs and the world around you may constantly change, and augmenting or enhancing your policy accordingly can help you remain sufficiently covered. Specifically, consider revisiting your insurance at these times:

• Upon regular renewals—Commercial auto insurance policies often include 6- or 12-month terms. At each of these intervals, be sure to revisit your options. Even if your coverage needs haven’t changed, shopping around might help you find a better deal.

• After purchasing new vehicles—Adding automobiles to your fleet inherently changes your coverage needs. New vehicles need to be listed on your policy and typically require greater coverage limits.

• Following new hires—When you add drivers to your company, you’ll likely need to reassess your policy. Anyone regularly operating vehicles should be listed.

• In response to operational adjustments—If your business pivots or starts offering new services, such as increasing its delivery radius or opening a new location, you’ll want to revisit your insurance and make sure coverage remains sufficient.

• After legislative changes—Laws regarding commercial auto insurance may change. It’s your business’s responsibility to be aware of these obligations and make sure your coverage remains compliant.

We’re Here to Help

At Freeman Insurance Services, Inc. in Albany, California, our team can help you address current and future commercial auto coverage needs. Contact us today to get started.

This blog is intended for informational and educational use only. It is not exhaustive and should not be construed as legal advice. Please contact your insurance professional for further information.