Commercial Auto Insurance Florida

Commercial Auto Insurance in Florida: Everything You Need to Know

Business owners in Florida who own any commercial vehicle or vehicles are required to have commercial auto insurance to give them protection and coverage in the event of an accident that may arise from property damage or bodily injury. The I-95 highway in Florida is among the most hazardous in the US for commercial vehicle accidents like trucks, which is why a commercial auto policy is most needed when operating in Florida.

Accidents involving commercial vehicles can be costly, making auto insurance commercial coverage necessary for Florida companies with company-owned vehicles. Companies that don’t own their vehicles also require insurance coverage for specific uses, including additional coverage for trucks on interstate runs. In Florida, business insurance for rentals and leases are for the account of the user.

Commercial Auto Insurance Florida

Why Do You Need Commercial Auto Insurance?

Suppose you have a small business in Florida that owns a vehicle or vehicles. In that case, you are required to purchase commercial auto insurance because it will give your business some protection from a potentially costly lawsuit if your commercial vehicles get involved in an accident. This kind of business insurance in Florida is intended to protect your organization from incurring financial losses due to property damage, liability lawsuit, or loss of income if your business is unable to operate without the needed commercial vehicle.

Businesses in Florida with commercial vehicles need commercial auto insurance to offer them protection from financial losses as a result of an accident or collision while they are on the road, making deliveries locally or within the country. Having Florida commercial auto insurance can save your business from losing those hard-earned profits in case of an accident.

There are many small businesses and professions in Florida that can benefit from having business insurance. These professions include:

According to the Florida Office of Insurance Regulation, business owners are required to have commercial auto insurance if they use their vehicles for their operations, including deliveries or transporting goods. Another type of coverage business owners in Florida are required to have is commercial liability insurance. 

How Much Does Florida Commercial Auto Insurance Cost?

The cost of small business insurance in Florida, including commercials, and business, depends on:

  • The industry
  • The type of vehicle (a bus, semi-truck, car, cargo van)
  • The number of vehicles insured
  • Expected mileage for the year
  • Claims history
  • Your business’s safety rating
  • Commercial vehicle driver’s record 

When it comes to business insurance quotes in Florida, commercial auto insurance premiums take into account not only the vehicles and drivers but also the type of business, type of driving, distances covered, and the items being transported if any. Even if different trucks cover the same territory, a semi-truck or trailer would have different rates from an urban delivery closed van.

Furthermore, the price of the insurance policy will also depend on where the vehicle routes and whether it be used only locally or interstate. Business insurance auto cost in Florida varies with the coverage and your deductible. Still, the minimum coverage for any commercial auto insurance is around $10,000 for bodily injury protection coverage and property damage liability coverage.

If the vehicle weighs more than 26,000 lbs, liability insurance must be added to provide property damage and bodily injury coverage. The minimum amount of insurance policy for liability insurance depends on the vehicle’s weight such that trucks weighing 26,000 to 34,999 lbs. should have a minimum of $50,000 liability insurance for every occurrence, and for trucks weighing 35,000 to 43,999 lbs. should have at least $100,000 coverage. In comparison, vehicles with 44,000 lbs. and up must have a minimum of $300,000 liability insurance coverage per occurrence. In practice, a larger vehicle would carry more cargo, and will be on the road for longer stretches of time. These vehicles cost more to repair, and can cause even more damage in case of accidents.

Business vehicles that travel interstate need to follow the US Department of Transportation policies, which require them to have a minimum coverage of $750,000 in liability insurance for every occurrence. Typically, interstate travel uses semi-trucks, trailers, and large close-vans.

What Does Commercial Auto Insurance in Florida Cover?

Florida commercial auto insurance is a combination of required and optional coverage. Depending on your needs, your policy could include:

  • Bodily Injury Liability Coverage: protects you from loss in case your employee gets involved in an accident that is deemed your fault. 
  • Property Damage Liability Coverage: covers the costs for repairing property that is damaged by employees as a result of using the commercial vehicle.
  • Collision Coverage: covers losses that are a result of collision in your commercial vehicle.
  • Comprehensive Coverage: covers all types of non-collision perils, including vandalism, theft, or other types of damage, for example, if a tree fell on your commercial vehicle. 
  • Underinsured or Uninsured Motorist Coverage: covers the difference in case your commercial vehicle gets in an accident with a motorist without insurance or who lacks a sufficient amount for the losses. 
  •  Medical Payments Insurance Coverage: covers medical payments for drivers, passengers and others who get injured in an accident

How to Get Cheap Commercial Auto Insurance in Florida

There are a few ways to get the cheapest commercial vehicle insurance in Florida, including maintaining a clean driving record and adjusting your coverage limits and deductibles. As a business owner, you can also get a discount, which is another easy way to get cheaper commercial auto insurance in Florida. 

What Policies Must Be Included in Your Commercial Auto Insurance in Florida?

Because one for every ten accidents within the state involves a business vehicle, they need commercial auto insurance. It will help your business significantly in case your vehicle experiences an accident or collision. Find an auto insurance specialist around your zip code to help you look for the most appropriate commercial insurance for your business vehicle.

Some policies that may you consider to add with your commercial auto insurance are:

  • PIP (Personal Injury Protection) – this type of Florida business insurance will help you cover medical expenses for both the injured driver and passenger in case of an accident.
  • Property Damage Liability Insurance – this type of policy will cover the costs for the repair or the replacement of a third party personal property damaged during an accident caused by your driver.
  • Collision Insurance – this type of business insurance in Florida covers the damage to your company vehicle as a result of an accident no matter who is at fault.
  • Comprehensive Insurance – this type of insurance can cover the cost of replacing or repairing a damaged or lost vehicle due to non-collision reasons such as a tornado, flood, hurricane, theft, falling object, or non-collision fire.
  • Uninsured Motorist Insurance – this type of policy offers coverage for medical expenses and property damage for a vehicle accident caused by an uninsured driver.

A commercial auto insurance specialist in your area may offer other optional policies like towing and roadside assistance insurance, rental car insurance, non-owned auto insurance, umbrella insurance policy, or even Bailee coverage. There are instances when additional coverage is required. These coverage options improve commercial insurance protection for property loss or damage to items in your delivery truck.

Having commercial auto insurance is highly essential, especially in this state, as it will save your business from experiencing financial losses due to accidents or collisions. East Insurance Group offers insurance in different cities in Florida, including Orlando, Gainesville, Tampa, Jacksonville, and Palm Coast.

Talk to a commercial insurance specialist to help you find commercial insurance that will fully comply with the laws and requirements. Purchasing the right type of commercial insurance coverage is very important because it will give you the protection you need in case of a collision or accident.

Florida Business Insurance FAQ

What Type of Insurance is Required in Florida?

According to Florida law, business owners must obtain two types of insurance policies:

  • Companies that are not in the construction business must buy workman’s comp insurance if they have 4 employees or more
  • Companies that are in construction must obtain workman’s comp insurance if they have only one employee

Do I Need Commercial Auto Insurance if I’m Not Required by Florida Law?

If you use your personal car for business purposes, your activities are probably not covered under your car insurance policy. It is always a good idea to consider purchasing commercial auto insurance if you or your employees are driving the vehicle to conduct business activities as it can protect you in many cases that were described above. 

How to Choose the Right Form of Insurance for my Business?

One of the best ways to choose the right type of business insurance is to do a risk assessment. Think about the liabilities that may occur on a daily basis. Usually, a commercial umbrella policy is a good option for any type of company as it covers many situations that can happen to any business.

Owning a commercial business involves many risks that can expose your assets to potential claims or lawsuits, which is why getting commercial coverage is very vital. That’s why you should consider consulting an insurance specialist to guide you on the types of business insurance policies in Florida that can fully protect your company and assets.

Did you find this article useful? If so, you might also want to learn more about Workers Compensation Insurance FL

If you are still confused about commercial auto insurance in Florida, make sure you contact our experienced insurance specialist and you will get all your questions answered.