Some businesses engage in seasonal activities such as snow plowing or lawn mowing. The machinery used in seasonal businesses is dormant during the off-season even though it is insured via a commercial auto insurance policy. Is commercial auto insurance really necessary during times when business vehicles are not being used?
Although it seems counter-intuitive, Michigan Business Insurance is crucial during periods of non-use. Business vehicles risk damage or theft regardless of whether they are in use. A parked vehicle could get damaged by floods or stolen during the off-season. Thus, you need to keep insurance coverage on vehicles during the off-season.
Instead of trying to save money by canceling the insurance, switch to a comprehensive only policy. This allows a business to get coverage for specific risks like vandalism, theft or environmental damage. Getting this kind of insurance saves you money throughout the year; it's cheaper to pay for continuous comprehensive coverage than to restart your policy at the beginning of each season of use and canceling it at the end.
Business owners may treat vehicles differently during off-seasons. Some owners just park the vehicle and forget about it, while others use them for personal business until the season begins again. If you convert business vehicles to personal use vehicles during off-seasons, talk to your insurance company about getting cheap coverage for personal use of commercial vehicles. Your insurer will probably adjust the premium for this type of insurance based on how frequently you plan to use the vehicle and what the risk of damage to the vehicle is. The less frequently you use your vehicles during off-season times, the lower the premiums for coverage will be.
Some insurance companies track clients' business activities and are aware of when the season begins and ends for using particular vehicles. These insurers provide clients with lower premiums during the off season. Inform your insurance company of the dates you start and stop using your business vehicles during the application period so that you can qualify for these types of discounts.
Businesses which rent machinery during the on-season should only insure the vehicles during the operating periods. During the off-season, the rental company is fully liable for any damage to their vehicles. Thus, you should not waste money on insurance for these vehicles during periods you are not renting them.
There are many options when it comes to commercial vehicle insurance. We can help you figure out what type of insurance coverage is best for your business. For a professional evaluation of your commercial vehicle insurance needs, please call an Insurance Planning Service agent today at 800-220-5582.