In Kansas business owners are responsible for purchasing adequate insurance for their company vehicles. The insurance requirements begin with the mandate for all automobiles. However, personal auto insurance doesn’t cover the operations of a business. Local agents are available to help business owners evaluate commercial auto insurance in Wichita KS today.
What is the Minimum Coverage Requirement?
The basic coverage requirements are a minimum of $25,000. The maximum coverage for an auto accident is $50,000. The policy should also reflect at least $10,000 worth of coverage for any property damage that occurs.
However, this is the minimum for auto insurance in the state. It doesn’t reflect additional coverage requirements that the company may need. These additional options may apply to materials or products that are shipped out to the customers via the commercial vehicle.
Defining Business Purposes
Under business coverage, business purposes are considered any function of the company that requires the use of the vehicle. It doesn’t apply to any other use of the vehicle. For example, if an employee or the business owner has an accident when they are off duty, the accident isn’t covered under the commercial insurance. These policies restrict the use of the vehicle to necessary business purposes only. If the owner or employee wishes to use the vehicle for personal reasons, they need additional auto insurance coverage.
Liability Coverage for the Client’s Property
A higher level of coverage could provide the business with additional liability coverage. This coverage applies to any merchandise or personal belongings that are owned by a client. If an employee becomes involved in an accident while transporting these items, the insurance covers the damage. The amount of coverage and if it replaces the items lost depends on the level of coverage achieved and the total value of the item.
In Kansas, commercial auto owners need to evaluate potential opportunities to protect their property. Commercial auto coverage is among these options. It prevents potential financial losses due to damage and common liabilities. It also defines the circumstances in which coverage may not be available. Business owners who need Commercial auto insurance in Wichita KS should browse our website for additional details or for a free quote.
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