Insurance For Auto Rental Businesses

Business Interruption Insurance

Many businesspersons do not realize the importance of business interruption insurance until they have to go through it. So, business operations running smoothly at a commercial property often need to be halted, mostly because of a natural disaster. In such cases, businesses have to suffer massive losses. In fact, at times, the effects of these disasters are so terrible that business has to be paused for a long period of time. Hence, due to business interruption insurance, the owner gets compensation for the loss that occurred. 

Workers’ Compensation Insurance

Another important insurance policy that all businesspersons need to consider is workers' compensation insurance. Of course, it is quite natural to get minor injuries on a job. However, sometimes workers sustain major injuries, and business owners are bound by law to provide compensation to injured employees. They must also cover the employee’s medical expenses and some part of their salary for the days they can’t work. 

Excess Liability Insurance

Excess liability insurance is basically an extension of general liability insurance. You see, when someone is handling your business property (vehicles), there is more risk involved as compared to other businesses. This is why extra protection as a backup is always a good idea. 

 Consider this scenario, 

A person takes your car out on rent and gets into an accident. To top it off, not only have they sustained fatal injuries, but while driving, they have bumped the car onto someone else's property damaging their fences and some contents on the property. They decide to sue the driver and the rental company (you). At the same time, the driver has also filed a lawsuit against your auto rental business.
bound by law to provide compensation to injured employees.

Astonishingly, you are surrounded by 2 heavy lawsuits that exceed your coverage limit from your general liability insurance. Now, your excess liability insurance comes into play to save you from losing huge amounts of money. 

 Any good insurance company that offers commercial insurance can provide all of the insurance for auto rental business.

Commercial Fleet Insurance

In addition to General Car Rental Business Insurance, you also need Commercial Fleet Insurance to protect your fleet of vehicles that you are putting on rent. Naturally, you will come across different clients, and not everyone will be careful in handling the vehicles. 

 In most cases, you only require commercial auto insurance, which will provide coverage for any damage to your vehicle and the employees driving it. Commercial fleet insurance will provide similar coverage. However, fleet insurance is specifically designed for businesses that own more than two vehicles (or a fleet).

 Other than that, you should ensure that you have some extra coverage, especially for your fleet, like:

• Medical payments – Helps you get coverage for paying medical bills of anybody was in your vehicle
• Collision damage – It provides coverage for when your vehicle gets damaged from a collision
• Physical damage – Provides coverage when any vehicle from your fleet gets damaged due to any reason
• Comprehensive coverage – This covers loss or damage that did not occur due to an accident like theft, vandalism, etc.
• Roadside assistance – It provides coverage for the expensive cost incurred because of roadside assistance like towing or repairs when your vehicle breaks down in the middle of a road.
• Uninsured and Uninsured motorist coverage – It provides coverage for hit and run cases. Other than that, when your vehicles get into an accident with an uninsured motor, this policy helps by providing coverage for damage. 
  

Conclusion

Running a business is not easy. It takes all your efforts and plenty of investments to build a path of success and then reach your destination after a ton of hard work.

It is imperative to protect this business and get insurance coverage that will help keep your business afloat.

Furthermore, insurance will help you become confident about your business operations. When you know you have a financial security blanket, you will be able to make bolder decisions for your business. 

Of course, this is what will take you forward in the industry, and you will ultimately build a successful auto rental business.