Corporate auto insurance is essential for protecting businesses from financial loss when company vehicles are involved in accidents or damage. However, there are situations where your policy may not provide adequate coverage, leaving your business exposed to liability and financial risks. Here’s what you can do if your corporate auto insurance isn’t enough.
Assess the Coverage Gaps
The first step in addressing insufficient insurance is identifying where the gaps exist. You should review your current policy to determine whether you are adequately covered for potential damages, medical expenses, legal fees, or other liability claims that could arise from accidents. For example, some policies may have low coverage limits for property damage or bodily injury, which may not cover all costs in a severe accident.
Consider an Umbrella Policy
If your current coverage limits are too low, purchasing an umbrella insurance policy can provide additional protection. Umbrella insurance is a secondary policy created to extend your liability coverage past the limits of your standard corporate auto insurance. This can be particularly helpful if an accident leads to significant legal fees or medical expenses that surpass your primary policy’s limits. Umbrella policies can cover a range of liabilities, including lawsuits, making them a valuable addition to businesses.
Explore Commercial Excess Liability Insurance
Similar to umbrella insurance, excess liability insurance provides extra coverage when a claim exceeds the limits of your standard policy. While umbrella policies cover multiple types of liability, excess liability insurance specifically applies to the corporate auto insurance policy. This option is useful if your business faces higher-than-average risks, such as operating a large fleet or frequently transporting valuable goods.
Negotiate Policy Adjustments
Speak with your insurance provider about adjusting the terms of your corporate auto policy to better suit your business’s needs. You may be able to increase your coverage limits or add endorsements for specific risks, such as uninsured/underinsured motorist coverage, that could protect your business from third-party drivers who lack sufficient insurance. Regularly reviewing and adjusting your policy ensures that it keeps pace with your company’s evolving risk profile.
Conclusion
If your corporate auto insurance isn’t enough, options such as umbrella policies, excess liability insurance, and policy adjustments can help bridge coverage gaps. By identifying the shortfalls in your coverage and taking proactive steps, you can safeguard your business against the financial risks of underinsurance.