Claims Process in Business Auto Insurance: How to Handle Accidents and Damage

Business auto insurance is critical coverage if your company owns vehicles or if you or your employees use personal vehicles for work-related tasks. You must have insurance and understand how the claims work to handle commercial vehicle accidents. Read on for some critical information to know about business auto insurance.

Why Is Business Auto Insurance Important?

Did you know that, on average, it costs almost $6,000 to repair a vehicle damaged in a motor vehicle accident? Injuries tend to be much higher-cost, with disabling injuries costing around $155,000. If you or your staff are involved in an accident that results in damages, your company may be liable. 

Auto insurance protects businesses against injuries, motor vehicle damage, and other liabilities from a motor vehicle accident. If your company uses motor vehicles for business-related tasks, you should have a business auto insurance policy. Personal insurance typically doesn’t cover damages when an employee uses the car for commercial use. 

What Does Commercial Auto Cover?

Business auto insurance pays for various damages, depending on the type of policies you have. Most policies cover all employees who drive insured vehicles. Policies cover physical damage and liability. Liability includes all bodily injuries, uninsured motorists, and property damage. Along with the basic policies, some insurers offer coverage for medical payments, rental reimbursement, gap coverage, towing, and labor costs.

How to File an Auto Insurance Claim?

When handling car accidents in your business, your first move should be to file an auto insurance claim with your insurer.

Report the Claim

Following the accident, report your claim. Shortly following the claim, a claim professional should contact you to verify the details of your losses and explain the policy to you. The professional will help you determine what coverages apply to the accident, including deductibles, limits, and exceptions.

Plan the Repairs

Most business auto insurance claim professionals will ask you to obtain an estimate for the costs of repairing your vehicle. If your car suffered damage from a covered event, the claim professional might help you find a repair facility to estimate the damage. If you believe someone else caused the accident or is responsible for paying the damages, your claim professional can explain recovering damages and repairing your vehicle. 

Contact Other Parties

If other people were involved in the accident, you should give your claim professional their contact information. It includes any passengers in your vehicle and any persons who may be responsible for the accident.

Manage the Repairs

During the repairs, you will speak directly with the mechanic. If allowed, you can obtain a rental vehicle for your company while your vehicle undergoes repairs. In some cases, your costs may exceed the value of the car. If this is the case, you will receive cash value for your vehicle.

Collect Payment

Your insurer will typically mail you a check for the repairs and other damages. Often, the check will be payable to both you and the mechanic’s shop. Some insurers may also allow you to authorize direct payment to the shop.

Drive Confidently With Business Auto Insurance

Without business auto insurance, your company could face devastating costs if company or employee vehicles are involved in an accident while engaged with job-related tasks. If you want to be able to handle accidents involving your company vehicle, you need adequate insurance coverage.

About Byrnes Agency 

At Byrnes Agency, we offer insurance solutions that can be tailored to meet your specific needs. Whether you’re looking for personal policies or commercial coverage, we have the right coverage for you. To learn more about our products, contact us today at one of our two locations.

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Dayville Office

Phone: (860) 774-8549

394 Lake Rd

Dayville, CT 06241

United States

Hours of Operation: Monday- Friday 9:00am-5:00pm

Norwich Office

Phone: (860) 886-5498

6 Consumers Avenue

Norwich, CT 06360

United States

Hours of Operation: Monday- Friday 9:00am-5:00pm

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