When our team is consulted by business owners who are seeking advice on the different types of insurance policies that we offer, the professionals at Grillo & Associates are often surprised to learn that many long-standing businesses have never had Commercial Auto Insurance coverage. In this posting, we will go over which types of firms need this important coverage and how to determine which is the best Commercial Auto Insurance for New York drivers.

To answer the question posed in the title, every New York-based company that uses cars, trucks, vans, limousines, yes, even food trucks, etc. to perform their business activities must ensure proper insurance coverage. Commercial Auto Insurance for New York drivers is a policy that will cover every vehicle that is owned by a business. For vehicles that are personal, rented, or leased, there is a separate type of policy available, and that is known as Non-Owned Auto Insurance (HNOA). Remember, your auto insurance policy will provide coverage while you are commuting to and from your place of business, however if you work in sales, for example, and are on a sales call to a client or prospect and are in a vehicular accident, a Business Auto Policy (BAP) is a combined auto insurance and liability policy that covers all vehicles that are used by a company, whether or not they are owned by a business, are leased, or are the vehicles belonging to employees (like our salesperson). A BAP provides more extensive coverage than the standard Commercial Auto Insurance policy.

Another response to the query, “Who needs Commercial Auto Insurance in New York?” needs to know the long and the short responses. Any vehicles that are owned just for work purposes must be covered by a commercial auto policy, whether you own a truck for your landscaping business or an entire fleet of vans for your home heating enterprise. And the short response? Because having Commercial Auto Insurance in New York is mandated by law. That’s right. Your company could be placed in legal and financial jeopardy if you forgo having this coverage. Fact: In the State of New York, all vehicles used for commercial purposes are required to carry auto liability insurance. Here’s why: should one or more of your business vehicles be found to be at fault in an accident (even in a no-fault state), you may still face lawsuits for damages to the other vehicles involved, as well as be required to be responsible to pay other involved parties’ medical costs, compensation for their lost wages, pain and suffering and a host of other accident-related costs.

That is not the end of it. Additionally, you and your business could face severe penalties imposed by the State, for not carrying Commercial Auto Insurance in New York. Driving without coverage may result in fines, reaching up to $1,500 in New York State. Should you or any of your employees who drive a company-owned vehicle be involved in an accident, the State will revoke the driver’s license and vehicle registration for at least a year or longer. There will also be another fine imposed of $750 to get your license back. If you have lapsed coverage, business owners may be required to pay a civil penalty or turn in the vehicle’s license plates to the Department of Motor Vehicles (DMV).

You probably are aware that every vehicle in the state of New York is required to have a minimum amount of auto liability insurance coverage, whether it is used for personal or business use. New York’s insurance requirements are:

  • $10,000 for property damage liability for a single accident
  • $25,000 for bodily injury and $50,000 for death for a person involved in an accident
  • $50,000 for bodily injury and $100,000 for death for two or more people in an accident

As your trusted advisors, the insurance professionals at Grillo & Associates want to meet with you to discuss the amount of coverage your business requires based on several different aspects including the types of vehicles owned and used by your business as well as how they are used. There are other factors to consider as well. As your business partner, our team will make certain that your firm has the right insurance policies to protect your needs, to meet both your requirements and your budget.

We invite you to contact us to schedule a confidential consultation with Grillo & Associates. Call today!