Businesses in the Sunshine Coast must have sufficient liability insurance to protect themselves against the potential financial burdens of lawsuits. Motor vehicle insurance in the Sunshine Coast, for example, is one thing you cannot afford to be without. Even the Australian government couldn’t stress this enough, as seen on Business.gov.au:
Motor vehicles and fleets
It is compulsory to insure all company or business vehicles for third party injury liability. Many different types of policies are available, so make sure you understand the options before making a decision. There are four basic options:
- Compulsory third party (injury)
- Third party property damage
- Third party, fire and theft
Commercial versus Personal
To understand the need for your business to have good vehicle liability coverage, you should first distinguish between commercial and personal vehicle coverage. Personal car insurance can be optional, and you can only claim against it if you are using your car for business use. Commercial insurance, however, provides coverage for vehicles in the transport or logistics industry or in the instances that your employees drive your business vehicles.
Personal vehicles can be covered if used for business purposes—i.e. for running errands or for bringing clients to their destinations. Commercial vehicles, as their name implies, are used solely for business purposes. These include delivery vehicles, long-haul trucks, and the like.
How much commercial motor insurance exactly should you get? Answer this question by weighing the size of your business and the overall value of your assets, as well as the number of vehicles that you use for your everyday business operations. Also, you should think about the ability of your business to absorb the costs involved in lawsuits.
For Independent Contractors
Many independent contractors buy into the fallacy that they do not need to get commercial auto insurance anymore. However, the truth is that their clients’ coverage may not always include accidents that they get into. So if you are one, be sure to always get yourself and your vehicle covered for good measure.
Trusted Sunshine Coast insurance brokers like Insuring theProduct are happy to help you find the right type and coverage for your commercial motor insurance needs. Don’t forget to ask your broker about the different options available to you and any additions that can benefit your business.
(Source: Asset & revenue insurance, Business.gov.au)