The Importance of Commercial Auto Insurance For Small Businesses in Louisiana

by | Aug 15, 2023 | Auto, Commercial Insurance


If you’re a small business owner, you’re probably no stranger to the unique challenges and opportunities that come your way. That’s why having insurance for your business is important. 

It gives you the peace of mind that if something goes wrong, you can still run your business even when something unexpected happens to you or your company.

However, one thing that often gets overlooked in the whirlwind of entrepreneurship is the significance of commercial auto insurance for small businesses.

If your company owns a vehicle or a fleet of vehicles specifically for business purposes, commercial auto policies can help mitigate any fees or expenses if an accident involves your work vehicle. This can help save you money in the long run.  

Some business owners may think that commercial auto insurance for small businesses is a waste of money, as profit margins dictate their business expenses. However, having commercial auto insurance for your small business should be an expense you strive to have.

Why Should Your Small Business Have Auto Insurance?

Having insurance, especially auto insurance, can help you recover from any accidents or theft you may experience while operating your business vehicle.

If your business vehicle has been in an accident, having commercial auto insurance can cover associated costs. These costs include expenses such as medical bills, legal bills, and even property damage.

If you operate your business vehicle without any commercial auto insurance and you get involved in an accident, you are bound to face a massive amount of legal bills and medical expenses, plus you will have to pay the repair cost for the vehicle. 

Moreover, you could be liable for any necessary payout settlements. The risk of bearing these fees is that they are not cheap and can quickly chew up your business profits.  

This is precisely why having commercial auto insurance for small businesses is crucial. You certainly do not want to be stuck with these hefty bills and expenses while running your small business.

Read also: Common Risks Small Businesses Face

What is The Difference Between Commercial Auto Insurance and Personal Auto Insurance?

Commercial auto insurance and personal auto insurance both offer liability and physical damage coverage for vehicles. However, commercial auto insurance is specifically designed for businesses and their vehicle fleets.

While personal insurance policies cover incidents or accident fees within a personal capacity, they do not cover additional fees for any commercial or business-related accidents. 

Meaning if an employee has an accident while driving a work vehicle or completing a job, your personal insurance will not cover that.

Commercial auto insurance also carries higher liability limits than personal policies, which provides more extensive coverage for your business.

What Does Commercial Auto Insurance Cover?

You might be curious about what commercial auto insurance covers, so below is a list of the typical coverage of commercial auto insurance.

  • Liability coverage, including bodily injury and property damage. 
  • Uninsured/underinsured motorist coverage.
  • Medical payments coverage.
  • Comprehensive coverage.
  • Collision coverage.
  • Drivers listed on the policy.
  • Permanently-attached tools and equipment, such as a ladder rack. 

Coverage details may vary depending on what policy you have taken out. Additionally, you have the option to include extra coverages, such as roadside assistance, hired auto (coverage for vehicles leased, rented, or borrowed for business purposes), and non-owned auto (an extension to your liability coverage to cover employees who occasionally use their personal vehicles for work).

Read also: What Are the Most Common Types of Commercial Insurance?

In conclusion, the significance of obtaining commercial auto insurance for small businesses in Louisiana cannot be overstated. 

Given the dynamic nature of business operations and the potential risks involved, having the right insurance coverage is a prudent step toward safeguarding your business’s financial stability.

Contact TSL Insurance Group for a Free Commercial Auto Insurance Quote

If you are looking for commercial auto insurance in Lafayette, LA, we at the TSL Insurance Group are here to assist you. 

Our team of experienced advisors is dedicated to guiding you through the process to find the right business insurance that suits your needs and your budget. 

We also have four other offices conveniently located across Louisiana in Baton Rouge, Lutcher, Franklin, and Abbeville, to ensure comprehensive coverage and services for your Louisiana-based business.

Contact us for a free quote today!