Develop a good business relationship with your insurance advisor.
Business auto insurance covers your business for both bodily injury liability and property damage in the event of an accident. This means your coverage includes injuries or damage caused by someone operating one of your company vehicles as well as injuries to the driver and passengers of one of your covered vehicles. You may opt for additional coverage for liabilities associated with renting or leasing vehicles or to cover an employee who uses her own vehicle for company business.
Instructions
1. Prepare yourself for an on-the-phone or in-person meeting with potential insurers. Know how the vehicles in your business are used, whether any of your employees drive their own cars for business purposes and who drives the business's vehicles.
2. Ask about the minimum requirements for commercial auto insurance in California. The California Auto Insurance 360 website states that California law requires at least $15,000 in coverage for the injury or death of one person, $30,000 for more than one person and $5,000 in coverage for property damages.
3. Ask whether you should cover the cost of damages or injuries sustained while you or your employees operate any two- or three-wheeled vehicles. Some businesses use motorcycles or other vehicles in the course of their business.
4. Determine whether all your commercial auto insurance needs are met by a standard policy. For instance, businesses that own dump trucks, transport flammable liquids, provide bus service or have other special situations require additional coverage.
5. Establish the required proof that you are financially capable of covering the cost of auto accident damages once you have found the best insurance provider for your business. Most California businesses prove financial capability, as required by the state of California, by obtaining an insurance policy. But, you may choose to deposit $35,000 cash with the California Department of Motor Vehicles, obtain a self-insurance certificate from the California DMV or obtain a $35,000 surety bond instead.
