If your business uses vehicles of any kind for any sort of business purpose (including commuting), New York requires them to be insured.
Key Takeaways:
- Commercial vehicle insurance is a state requirement in New York.
- Cars, vans, trucks, motorcycles, trailers, or buses used for business purposes of any kind, including deliveries and commuting, must be commercially insured.
- Business owners must know the various potential outcomes they should be covered against, and what the minimum coverage amounts are.
When it comes to the sheer number of small businesses in America, New York ranks among the biggest hubs of enterprise. The latest figures from the U.S. Small Business Administration show that the Empire State’s 2.3 million small businesses make up 99.8% of all businesses in New York.
This means many small business owners and their employees are relying on company vehicles for operations, but notot all of them know they need more than just personal auto insurance to stay protected and compliant with state regulations.
Here, we’ll take a closer look at business vehicle coverage essentials, ranging from the different scenarios you must be covered against to the many factors involved in calculating business vehicle coverage costs.
Take notes, and your business will be among the most responsible on the road.
Why SMB Owners Need Commercial Auto Insurance in New York
Commercial auto insurance in New York is a state requirement, not a choice. Any vehicle-based damage or injury you cause while conducting business without it will come straight out of your pocket.
It’s vital not to assume that your personal auto insurance—or the fact that New York is a No-Fault state—will cover you and your business vehicle against accident or injury to yourself or others.
Your personal vehicle coverage is a separate issue, even if it’s the same vehicle you use for business, and No-Fault isn’t as consequence-free as it sounds. Someone is always to blame.
It’s also important to realize that commercial vehicles have higher risk profiles than personal ones for the following reasons:
- They have the same general parts and hardware that are attractive to vehicle thieves, from tires and batteries to any personal possessions left inside.
- Commercial vehicles often carry tools and other professional equipment that further make them targets for crime.
- Some commercial vehicles are regularly exposed to hazardous conditions such as building or manufacturing sites, or transporting certain materials.
- Commercial vehicles can be larger and harder to operate, making them more likely to be involved in accidents that could seriously harm people or property.
The potential amounts you may have to pay in damages or lawsuits for driving without commercial auto insurance could be financially devastating, or possibly business-ending.
Beyond that, there’s the risk of losing your driver’s license and vehicle registration due to suspension. This means being unable to operate as a business, leading to lost profits, not to mention other monetary penalties that the state may impose.
While commercial and personal auto insurance are distinctly separate, they do have something in common when it comes to coverage—they require the same amount in various categories.
The Required Levels of Commercial Auto Insurance in New York
Small business owners must have the minimum commercial auto coverage in place to operate safely and comply with state laws.
These are the same dollar amounts as with personal vehicle coverage in New York, and include:
- $10,000 against property liability.
- $50,000 in personal injury protection.
- $25,000 against bodily injury of one person, and $50,000 against two or more persons.
- $50,000 against the death of one person, and $100,000 against two or more persons.
The state also requires commercial vehicle drivers to have Uninsured Motorists Coverage, which protects against damage by drivers with no coverage. Another important note is that liability requirements for certain commercial vehicles may be higher depending on their weight and what they transport.
Small business owners should study their business vehicle coverage to see if it includes comprehensive coverage, collision coverage, and roadside assistance or towing. If not, it’s advisable to consider putting these policies in place to protect the vehicle itself.
Collectively, covering all these insurance bases will help with medical expenses and costs of commercial vehicular repairs or replacements and give business owners greater peace of mind.
How Much Does Commercial Auto Insurance in New York Cost?
This is a variable figure since businesses can be very different. It’s more helpful to highlight the various considerations that go into calculating business vehicle coverage in order to form a general picture.
These factors can include:
- If you’d like to insure yourself beyond minimum requirements.
- How many vehicles are in commercial use, and where in New York State you’ll be operating.
- The cargo you’ll be carrying.
- The age, model, and safety profile of the vehicle.
- The driver or drivers’ road safety history.
- Whether you’ll be carrying passengers as part of your business model.
That’s not an exhaustive list, so small business owners should discuss all determining factors with their insurer to understand what their business vehicle coverage premiums will be.
Best Practices Toward More Affordable Commercial Auto Insurance
The best way to start is by speaking with an insurance expert who understands business vehicle coverage. They can help you compare different providers and shop around to find the most cost-effective and comprehensive protection.
Other helpful steps which could lead to more affordable premiums are:
- Keeping your business vehicle(s) well-maintained.
- Investing in effective vehicle security.
- Ensuring employees who drive are fully trained to operate the vehicle, and have good driving records and road habits, which makes them less of a liability.
- Always taking care to properly load, secure, and offload cargo to limit the chances of accidents, injury, and vehicle damage.
NICRIS is here to assist New Yorkers by offering an hour-long insurance review that’s entirely free. Let us help you look at your current car or motorcycle insurance or put a new policy in place.
We’re also standing by to answer your coverage questions via our contact form, so don’t hesitate to reach out for assistance!