Small-business owners and others trying to cut the cost of commercial auto insurance are often faced with a seemingly impossible task: saving money without sacrificing coverage. As a business owner, the vehicles you use in your business are your lifeblood. Just like you would never consider going on a job without all the necessary tools of your trade, you should never consider driving your business vehicle without the right insurance coverage.

Fortunately, with a little planning and preparation it is possible to obtain the best rates without the stress or worry associated with inferior products.

Put It into Practice

Have a written policy in effect for proper conduct when driving, and for expectations, limits and exclusions. Provide a copy to each employee who uses company-provided vehicles.

Be very specific about use, passengers, tickets and other commonly encountered situations, then make sure you follow up in the event of an incident.

Keep a Clean Driving Record

All employees and owners who use an automobile for business should have a clean driving record for at least three to five years prior to being allowed to use a company vehicle.

Evaluate Need

Eliminate unnecessary driving. More mileage means more risk.

Reconsider the practice of allowing employees access to company-provided vehicles after business hours, since it may increase liability exposure in the event of an accident.

Review Use of Private Cars

If employees routinely use their own vehicles for business, it’s a good idea to understand the limits and obligations your company may face, especially when it comes to sensitive business data, theft or other liability considerations.

Weigh the options and costs of allowing employees to use company-provided vehicles instead of their own before making a final decision.