Resilient on the Road During Commerce: Things to Know About Commercial Auto Insurance for 2023

Any company that provides vehicles for their employees has the very important responsibility of carrying auto insurance. As deliveries are made and people are in transit from one job site to another, there are all sorts of incidents that could arise on the road, making the need for adequate coverage mandatory. Everyone here at the Alexander Insurance Agency of St Charles is looking forward to seeing our clients have a safe and happy 2023. We put together a few of the most important items that will prepare you to make the best policy choice for your drivers out there hard at work on the job!

The Inclusive Liability Protection Commercial Auto Insurance Includes:

Commercial auto insurance is one of the most essential forms of coverage for businesses, because it provides liability if anyone encounters an accident on the clock. Any vehicles used at all for business purposes are covered, as well as the employee behind the wheel. Medical expenses for employees that incur an accident are also covered, and if you select the appropriate policy, so are legal costs incurred.

Many Coverage Characteristics are State Regulated:

The exact amount of coverage you will have to carry will depend on the location of your business. If you fail to comply with Missouri limitations, you may incur hefty fines, and be susceptible to the misery of a lawsuit against you. Each state requires you to provide compensation for the other driver involved if you are deemed at fault during the accident. Bodily injury liability and Property damage liability are minimum requirements before you hit the road.

Business Categories can Govern Costs:

The average price for commercial auto insurance is around $140 per month, with some on the luckier end paying less than $120 per month. Here are some factors that make a difference:

  • Your business’s size
  • How many vehicles need coverage
  • Types of vehicles needing coverage
  • How many different employees drive said vehicles
  • How much coverage are you in need of?
  • List
  • Unique occupational risks that your profession may have

Knowing Exactly Where You Stand in a Pinch:

If you suddenly are involved in an accident, you will find yourself quickly wondering how much coverage you have and for exactly what type of incidents. Your commercial auto insurance policy will provide coverage for you with a split limit or combined single limit method. A combined single-limit policy has a very specific coverage limit for any damage or injuries that occur during the accident.

The other vehicle involved may sustain bodily injury: if your coverage limit is $200,000, that amount will go toward covering damages that occur, and any medical expenses the victim incurs. A split limit policy provides different coverage limits for bodily injury and the unfortunate occurrence of property damage. So, depending on your per-person coverage limit, you may be personally responsible to pay damages if your limit is exceeded.

Situations That Benefit From Additional Coverage:

From large-scale food delivery to many other forms of logistics and transportation, many situations may require additional forms of coverage. If your employees use personal vehicles for work or rent company vehicles while on the go, it is wise to consider Hired and non-owned auto insurance. This form of coverage will protect vehicles that you need to use but you do not claim legal ownership to, such as traveling for work and renting cars in a different city.

Once your employees need to cross state lines to travel for work, additional forms of coverage may be needed. The coverage limits could be higher in your destination state than your home state, which could see you needing to speak to your provider to alter your plan. Some businesses such as sales thrive on out-of-state travel, while others such as IT may see needs to do so come up rapidly and unexpectedly.

The Advantage of Premiums During Tax Time:

The commercial auto insurance premiums that you need to pay for coverage may be tax-deductible. If you are not quite sure, it’s best to keep track of your mileage, receipts for business-related expenses, and keep a detailed record of your driving history for the last three years. If you are a self-employed contractor and need to drive your supplies around daily in a truck, you can deduct your premiums from your taxes. However, the car itself that you use to commute to and from work does not qualify.

If you drive for a rideshare company such as Uber or Lyft, you may need to have special insurance that covers you and your passengers. If you are using your car as a form of taxi, you can deduct your insurance. If your state and insurance company allow you to use your own personal insurance while ridesharing, you can calculate your deductible time.

Factors Governing the Decision to Deduct:

This amount is calculated by dividing your monthly car insurance payment by the percentage of the time you are using the car for this function. The most important thing to keep in mind here is that you can only write off insurance expenses if the total amount you are eligible to deduct is greater than the amount of the standard deduction. A few dollars saved is never worth your time and trouble when it comes to an audit, and an accountant is the best individual to consult when you have any potential questions.

It’s also important to note that it is not always mandatory to fully itemize your deductions to claim them as expenses. These deductions can be claimed on “Schedule C, Profit or Loss From Business.” Speaking to us here at the Alexander Insurance Agency of St Charles will allow you to make the best decision regarding your policy choice. Even though we understand that it can be a bit unnerving to think of the entity that provides your vitality and security having various individuals drive your cars, therefore insurance coverage exists: let us do the harder leg work and estimation while you hit the road and get ready to generate and retain business!


Savvy Entrepreneurs’ Strategies for Liability Protection: Small Business Insurance Tips for 2022

As you are faced with the task of making the important decisions for protecting your small business, it could seem appealing to alleviate larger costs by not purchasing full coverage. If you choose to run your business with a “bare bones” form of policy, one accident could, unfortunately, result in the demise of your dreams. With so many forms of business insurance available, it can be challenging to know which kind will best meet your needs.

The Basics of Small Business Insurance Coverage:

When various accidents unexpectedly happen, you are going to want the peace of mind that having your business protected from severe financial loss during a disaster can offer you. When it comes to business insurance there is sometimes not just one fitting solution, that’s the type of policy that will work for you depending on your company’s unique characteristics. Business insurance will help you with legal payments, multiple claims, property destruction, as well as many various issues regarding employees.

This type of coverage will also benefit you regarding important legal protection, and assist with employee injury, fire damage, help for lawsuits, or the death of a vital business partner. The insurance itself signifies a binding agreement between you and us here at the Alexander Insurance Agency of St Charles to intervene and pay for losses you incur. To properly select the type, you need to closely analyze what type of risks you are facing, and look at what your policy will cost you vs the loss you stand to incur.

What Elements of My Business are Protected with This Coverage?

Here are some of the common aspects of a business that insurance will provide you with:

  • Lives of your principals
  • Lives of vital employees
  • Long and short-term disability of owners and employees
  • Serious liability for injury of you and your employees
  • Property and casualty coverage for buildings and equipment needed to function
  • Liability for and damage to your business vehicles
  • Workers’ compensation: earnings of employees lost after injuries

Examples of Different Types of Business Insurance:

Here are some of the most common types of business insurance that will protect and secure your life’s aspirations and very hard work:

  • Business Owners Policy: this type of policy is usually a comprehensive bundling of general liability coverage and insurance for your property. You are also able to add in employment practices liability insurance policy that is a very wise choice for the protection and livelihood of your employees.
  • Business Interruption Insurance: This is also commonly known as business income insurance and is one of the most frequently purchased categories of coverage. It assists with lost income along with pay function expenses if you need to close due to a disaster. You’ll be thankfully able to cover your lot rent, mortgage, payroll expenses, loan payments, and quarterly taxes, and this very useful coverage can often be bundled with your Business Owners Policy.
  • Management Liability Insurance: This is another type of comprehensive insurance package that actively combines coverage such as employment practices liability, directors’ and officers’ liability, and fiduciary liability. In most cases, this is an essential form of coverage if you incorporate a board of directors or have even one single employee.
  • Worker’s Compensation Insurance: If you deal with the unfortunate event of an employee getting injured on the clock, Workers’ comp will assist you by covering their medical costs or lost wages. Plus disability insurance is most likely legally required of you to carry.
  • Errors and Omissions Insurance are ideal for those who offer advice, consulting, and their own unique breed of professional service. This coverage will protect you if a customer or client claims that choosing you caused them distress in their own professional or personal life. Financial advisors and real estate agents can benefit greatly from this type of policy.
  • Product Liability Insurance is there to protect you against claims that your product caused damage in any way. If you work at any level with a product that is at any point in the supply chain, you need this type of coverage to remain safe. Manufacturers, distributors, retailers, online sellers, suppliers, and importers can be held liable in a claim if the final product causes any bodily harm or other risks. Even if you have strict testing and protocol in place for quality control, unexpected events can still happen.
  • Auto Insurance: If you or your employees use vehicles at all during business, you’ll need to carry some form of coverage. The need for commercial auto insurance depends on what kind of vehicles you use: are they trucks, vans, or sedan-style models? The need for this type of coverage is a good reason to designate just one driver for smaller and growing businesses.

Tips for Deciding on the Business Insurance That is Right for You:

The insurance that will help you the most overtime will depend on your unique needs, as well as Missouri and other industry-specific laws. When you sit down with us to see which type of coverage would work best for you, we will look at the many different things that could happen along the course of a year’s operations and figure out the best plan for you. Here are some general steps to follow during this process:

Take Inventory of Your Assets and Your Responsibilities:

This is the initial step that helps you determine which type of insurance is going to be an ideal fit for your business. Many industries such as framing and construction are a bit more dangerous than office professions and may come along with the need for specific forms of coverage. Operating your business in a flood zone is another area of grave liability that needs to be closely assessed at every step. Many industries are susceptible to theft, while others may have a very clear need for errors and omissions insurance.

Taking Regular and Reasonable Inventory of Risk:

Carefully considering what your risk and liability will be is a huge help in determining which insurance will be the right fit for your business. Geographical and economic factors are both at play here, and many natural disasters can occur during the winter and early spring months. Succession planning is the task of allocating tasks and resources when any vital employee of the business is deceased and requires expert help to set up efficiently.

Looking at Your Interest’s Desired Level of Comprehension:

Depending on what type of business you need to insure, you may require a standard level of comprehensive insurance that will cover every single component of a loss that could occur. Then you must factor in how costly said loss will be and think about how likely it is to happen. Going over these results will prevent you from paying an exorbitant amount for unnecessary coverage, or not provide enough coverage for areas that are imperative by state or county law.

Finish by Selecting Your Provider:

Not every provider is the same, and many variables arise while you are finding your ideal coverage limits and types. It is best to pick a few that you see standing out in the form of consumer reviews, general reputation, and cost. Word of mouth can sometimes be an extremely helpful means of finding your right provider, as individuals who have filed claims and dealt with any insurance company’s pros and cons will be an excellent source of validated and resourceful experience.

We treat small business owners just like family here at the Alexander Insurance Agency and know that you want to feel as fully protected as possible each time you start up the registers, approach the loading dock, or go over your inventory. Contact us today to see what your options are for coverage, and start the process of knowing you have year-long reassurance and a superior safety net for the fruits of your lifelong endeavor!