Choosing the Right Commercial Auto Insurance for Your Arkansas Business

Whether you’re an entrepreneur in Little Rock or a seasoned business owner, your Arkansas-based enterprise requires comprehensive protection, especially when it comes to your fleet. In this article, we’ll delve into how to secure optimal commercial auto insurance for your business. From understanding the importance of commercial auto insurance to shedding light on relevant Arkansas laws, our guide aims to empower you to make the most beneficial decisions for your business.

Understanding Arkansas’ Commercial Auto Insurance Policies

Understanding your obligations under Arkansas law is critical. The “Natural State” has strict regulations when it comes to business vehicle insurance, and it’s essential to know these nuances. This involves the necessary minimum coverages, the state’s at-fault car insurance laws, and considering optional insurance coverages for enhanced business protection.

Legal Requirements for Minimum Coverage in Arkansas

Every business in Arkansas operating a commercial vehicle on public roads must have commercial auto insurance to comply with state law. The minimum required insurance coverage is $25,000 for property damage, $25,000 per person, and $50,000 per accident for bodily injury.

Beyond these minimums, businesses should closely assess their risk exposure and financial capacity to determine if additional coverage is necessary. While fulfilling these statutory requirements will allow operations within the law, they will not necessarily cover all potential risks to your business.

To enhance the protection offered by your coverage, consider adding comprehensive and collision coverages to your commercial auto policy. While these will increase the cost of your coverage, they will also protect your business from additional risks not covered under Arkansas’s minimum required coverages.

Arkansas’ At-Fault Car Insurance Laws and its Impact on Businesses

Arkansas operates under an at-fault car insurance system, meaning the party responsible for causing an accident is also responsible for the resultant damage. This has a direct impact on how insurance claims are processed. Consequently, this can affect businesses operating commercial vehicles within the state.

Due to the at-fault system, businesses bear a higher risk, as any accident caused by a business-owned vehicle will directly impact the business’s insurance premiums. Worth noting is that under this system, the injured party can also sue the at-fault driver for damages, which, if not adequately covered by your insurance policy, can pose a significant financial risk for the company.

Commercial Auto Policy Options for Arkansas Businesses

Liability Insurance:

This is the foundational coverage for commercial auto insurance. It helps cover costs if your business vehicle is involved in an accident and causes injury or property damage to others. Arkansas requires minimum liability coverage limits, so make sure you meet or exceed these requirements.

Collision Coverage:

This coverage helps pay for damage to your business vehicles in the event of a collision with another vehicle or object, regardless of fault.

Comprehensive Coverage:

Comprehensive coverage protects your business vehicles from non-collision events such as theft, vandalism, fire, or weather-related damage.

Uninsured/Underinsured Motorist Coverage:

This coverage protects your business if your vehicle is involved in an accident with a driver who doesn’t have insurance or doesn’t have enough insurance to cover your losses.

Medical Payments Coverage:

This coverage pays for medical expenses for you and your passengers if you’re injured in an accident, regardless of fault.

Personal Injury Protection (PIP):

PIP coverage provides broader protection for medical expenses, lost wages, and other accident-related expenses, regardless of fault.

Cargo Insurance:

If your business involves transporting goods or products, you may need cargo insurance to protect against damage, theft, or loss of the cargo you’re carrying.

Hired and Non-Owned Auto Coverage:

This coverage extends protection to vehicles that your business rents or borrows for business purposes but doesn’t own. It can also cover employees using their personal vehicles for business tasks.

Commercial Umbrella Insurance:

Umbrella insurance provides additional liability coverage beyond the limits of your primary commercial auto policy, helping protect your business from catastrophic losses.

Towing and Roadside Assistance:

This optional coverage can help with the costs of towing and assistance if one of your business vehicles breaks down.

Tips For Finding the Right Commercial Auto Insurance Coverage for Your Business

Finding the right policy is essential for maximizing coverage. Here are some tips for finding the right plan for your business:

Assess Your Needs

The first step in finding the right commercial auto insurance policy is to assess your business’s specific needs. Consider the types of vehicles you own or use, how they are used, and who will be driving them. Are they primarily for transportation, deliveries, or sales calls? Understanding your business’s unique requirements will help you determine the types and levels of coverage you need.

Research Providers

Once you know what you need, start researching insurance providers. Look for insurers with experience in commercial auto insurance and a good reputation for customer service. You can check online reviews and ask other business owners for recommendations.

Work With an Experienced Agency

An insurance agency that specializes in commercial auto insurance can be an invaluable resource. They can help you navigate the complexities of insurance policies, answer your questions, and ensure you get the coverage your business needs.

Building Policies for Companies in Any Industry

McGhee Insurance has experience creating comprehensive commercial auto insurance policies for companies across multiple markets. Learn more about who we work with.

Industries We Serve

McGhee Insurance: Finding the Right Commercial Auto Insurance for Arkansas Businesses With Our Extensive Partnership Network

Many businesses operate on narrow margins, and finding the right commercial auto insurance policy is vital for preventing overspending on their plans. For over 20 years, McGhee Insurance has been offering comprehensive commercial insurance options that maximize coverage for our clients. Our agents build policies that suit their budgets using our comprehensive network of partners, including:

Auto-Owners Insurance
Liberty Mutual
Progressive
Safeco
And more

Contact McGhee Insurance today to learn more about options for commercial auto insurance for Arkansas businesses.