Hey everyone , welcome back . Today we're diving into the deep end of commercial auto insurance . You ready .
Speaker 2Always ready to talk shop about keeping businesses safe on the road .
Speaker 1Love it . So we've got your notes right here , which are super helpful , and we're lucky enough to have some guidance from Ezekiel H Hudson at Hudson Agency to help us unpack this whole commercial auto insurance world . You familiar with him ? Oh , absolutely . Ezekiel's a walking encyclopedia of insurance world . Are you familiar with him ?
Speaker 2Oh , absolutely . Ezekiel's a walking encyclopedia of insurance knowledge , that's for sure .
Speaker 1Right , Okay . So to kick things off , let's talk about the why . Why does this even matter ? You've got a business , you've got vehicles .
Speaker 2And that's where things get interesting . Ezekiel brings up a point in his guide that I think a lot of business owners don't even consider what happens if there's an accident .
Speaker 1Oh yeah , Nobody wants to think about that .
Speaker 2Exactly , but not thinking about it can be a costly mistake , especially when you realize your personal auto policy is about as useful as a screen door on a submarine if you or an employee is driving for work purposes and something happens .
Speaker 1Whoa okay . So that's a bit terrifying . Are we talking ? We talking like even a quick run to the post office for stamps ?
Speaker 2Even that , deliveries , client visits , you name it . If it's work related , your personal policy likely won't cut it .
Speaker 1That's wild . So we're talking potential financial disaster for your business if you're not careful .
Speaker 2Unfortunately , yeah , legal fees damages the whole nine yards .
Speaker 1Yikes . Ok , so that's probably enough to make anyone want to call their insurance agent right this second . But before you do , Hold your horses . Exactly . Ezekiel has some really great advice about not jumping into the deep end without a life vest . Basically , you need to really assess your needs before you even think about getting a quote .
Speaker 2Think of it like this you wouldn't build a house without a blueprint right , that's a fantastic analogy .
Speaker 1So what are some things business owners should be considering during that blueprint phase ? Ezekiel goes through a bunch in his guides , but is there one that really stands out to you ?
Speaker 2You know , the one I always come back to is how are your vehicles actually being USD for your business ? It might seem simple , but the answer can really change your insurance needs .
Speaker 1Okay , I can see that . Give me an example .
Speaker 2Sure , let's say you're a florist . You might think I need insurance for my van to deliver flowers , which is true . But what if you're also using that van to haul expensive arrangements for weddings ? Longer distances , higher value cargo .
Speaker 1That changes things for sure . So how does a florist or any business owner figure out if their van life is more casual , cruise or high stakes delivery ?
Speaker 2It really comes down to the nitty gritty details .
Speaker 1Yeah .
Speaker 2You know how far are those deliveries , what's the actual value of what you're hauling around ? City driving versus , like , rural routes All that plays a role .
Speaker 1So painting a clear picture for your insurance agent .
Speaker 2Basically , it's kind of like yeah , driving is driving , but a quick grocery run is way different than braving a snowstorm on the highway right 100% and speaking of different scenarios , once you've got a handle on how your vehicles are actually being used , then you can really start digging into the types of coverage you'll need . Let's do it .
Speaker 1Then you can really start digging into the types of coverage you'll need . Let's do it . Ezekiel breaks down a whole bunch in his guide Liability to cover those oops , my bad moments when you cause damage to someone else . Comprehensive , which I think is more about protecting your vehicle right Theft , those crazy hailstorms we hear about .
Speaker 2Yeah , hail , can do a number on a car . Let me tell you .
Speaker 1No kidding . So this is where that whole assessment thing comes into play again . I'm guessing Big time .
Speaker 2The type and how much coverage you need really depends on the level of risk your business has .
Speaker 1Got it . So let's go back to our florist example . How do they know if they need the basic insurance package or the works ?
Speaker 2Okay , so let's say they're mainly doing local deliveries in like a small van , not hauling super expensive stuff . They might be fine with a standard commercial auto policy Covers , liability , maybe some basic comprehensive .
Speaker 1That makes sense , but what about our florist friend who's transporting those super pricey arrangements for like fancy weddings ? What kind of coverage are we talking about then ?
Speaker 2Oh , in that case they definitely want to beef up that coverage . Higher limits for liability and cargo insurance , for sure . They might even need to look into something called inland marine insurance Protect stuff while it's actually being transported .
Speaker 1Inland marine insurance . That's a new one , so it sounds like we're really talking about customizing this stuff , not just grabbing any old commercial auto policy . Huh .
Speaker 2You got it , and that actually brings us to something Ezekiel talks about in the guide Standard versus non-standard commercial auto insurance Trips people up all the time .
Speaker 1Okay , break it down for me . What's the difference and how do I know which one I need ?
Speaker 2All right . So picture this Standard commercial auto insurance . It's like your trusty everyday car gets you where you need to go . No bells and whistles . That's for businesses with you know pretty average risk level good drivers , regular vehicles .
Speaker 1So our local florist friend , they're probably in that lane right Most likely .
Speaker 2But let's say they hit the gas on their business and upgrade to one of those refrigerated trucks for long hauls .
Speaker 1Fancy .
Speaker 2Right , but that also means a bigger vehicle , maybe some riskier driving conditions . Yeah , that might bump them into the non-standard category .
Speaker 1Which is more like a heavy-duty pickup truck .
Speaker 2Bingo . It's designed for those businesses that might have a few more dings on their record or use specialized vehicles , you know , like trucking companies , construction crews , even those food trucks we see around town .
Speaker 1Okay , makes sense , but is this just about price , or is there more to it ?
Speaker 2Price is definitely a factor . Non-standard policies usually cost a bit more because , well , the risk is higher for the insurance company . But there can be other differences too , like what's actually covered or limitations .
Speaker 1Ah , so this is where we got to watch out for those sneaky exclusions Ezekiel warns about right .
Speaker 2Always read the fine print . That's my motto . Whether you're standard or non-standard , you got to know what's covered and what's not .
Speaker 1He gave that example about running personal errands with your work vehicle . Like you're on your way to grab some dry cleaning , fender bender happens . Your insurance might be like , nope , not our problem .
Speaker 2Exactly , and those exclusions can change from one company to the next . It's like a whole different language sometimes . That's why it's so crucial to have a good agent on your side , someone who can break it all down and find the right policy for you .
Speaker 1It's like having a personal translator for insurance speak . Speaking of which , I feel like we've covered a ton of ground here today .
Speaker 2We for Insurance Speak , Speaking of which I feel like we've covered a ton of ground here today . We really have . We talked about why commercial auto insurance matters in the first place , how to figure out what your business actually needs , the different types of coverage , those pesky exclusions , even that whole standard versus non-standard breakdown .
Speaker 1And don't forget those different perspectives too . It's not just about whether you're a florist or a construction worker . It's not just about whether you're a florist or a construction worker . It's about the specifics of how you operate .
Speaker 2Right Rideshare drivers , for example Totally different ballgame than a company with a whole fleet of delivery trucks . The main thing is there's no one-size-fits-all solution here . It's all about finding the perfect fit .
Speaker 1So , as we wrap up our deep dive into the world of commercial auto insurance , what's the one thing you want listeners to take away from all of this ?
Speaker 2Honestly . Don't be afraid to ask questions . The more you know about your options , the better decisions you can make for your business . Knowledge is power , especially when it comes to insurance .
Speaker 1Couldn't agree more . All right , everyone . That's a wrap on today's episode . Big thanks to Ezekiel H Hudson for the expert insights . And remember we talked about managing risk with insurance , but what about actively preventing those risks in the first place ? Driver safety programs , regular vehicle maintenance just something to think about Until next time . Drive safe out there .