If you are in the transportation business, you need to be extremely careful about who you decide to choose as your insurance company. This choice can end up saving your business or bankrupting it if you’re hit with unfortunate circumstances. Why are they so important? Consider the following.
Saves You Money
The first thing that you probably think of when you hear the word ‘insurance’ is cost. Although insurance can cost a fair amount, what you really should think about is savings. Having insurance can save you a lot of money in the short term. How? Through loans. Chances are that your business takes out loans to finance the purchasing of new vehicles and other expenditures. If you don’t have insurance, it’s going to be difficult to secure a loan. Even if you do get a loan, it’s going to have a much higher interest rate.
Insurance will also save you money in the long term. In the case of an accident, your company is going to incur a major expense if not insured. Because insurance is a legal requirement, you’ll probably be hit with a major fine from the government in addition to the costs of the accident. However, with insurance you will probably only pay a small portion of the costs depending on your policy.
Protecting Your Fleet
Transportation companies face unique challenges when it comes to training their drivers and protecting their vehicles, which can result in very high turnover rates. One of the biggest challenges you can face is unhappy or unruly customers. These individuals can cause your driver to become very distracted, which increases the likelihood of an accident. By having a good insurance company, you are prepared to handle these circumstances. Aside from just saving you money, insurance companies can also help you replace your vehicle so that you can keep your business running.
Getting Out Of A Tight Spot
If one of your vehicles breaks down, hopefully you have other vehicles that can take care of your passengers. But who is going to take care of your car? A good insurance company will provide you the roadside assistance that you need. If you need a tow, they can send a tow-truck to you free of charge. Another tight spot that they can help with is a locked car. If you are out and about and accidentally lock your keys in your car, a good insurance company will send you a locksmith to open it up for you.
Next time you talk to your insurance agent, ask them about what their company can do to help you with these things. You may find that you want to adjust your policy to receive coverage that better suits your needs.
For your business insurance needs, Lazor Insurance has got you covered! Learn more about our available options here.