Why Do You Need Business Car Insurance in Arlington, VA?
One of the most important questions I get asked is 'why do you need business car insurance in Arlington, VA'. The answer to this question has been troubling me for years, until I got a better understanding of it.
If you've ever been to an Arlington house party or attended a local company picnic then you have probably asked yourself why businesses in Arlington require business car insurance. The answer is quite simple.
Businesses who have vehicles that are worth more than $2500 in value are required by law to carry car insurance. The reason why they must carry this type of insurance is because they run a business and are a public nuisance.
It is imperative for the IRS, the police, and other government authorities to be able to identify the owner of any vehicle that breaks the law and is not being driven properly. When they know that a vehicle is not being driven properly then they can easily fine that person and take away the vehicle.
The second reason why businesses must carry business car insurance is to protect their own assets. For example, if their vehicles were stolen or destroyed due to an accident then they would lose their money, property, and their vehicles.
The third reason why businesses must carry business vehicle insurance is to protect them against lawsuits. If someone was injured in an accident that was caused by their vehicle then they could file a lawsuit against them and use the insurance policy as evidence to prove the claim.
This is the last reason why businesses must carry business car insurance and it is one of the easiest to understand. They must carry insurance because the courts will only award damages to the vehicle owner if the owner was the cause of the accident.
The state of Virginia requires that if a person files a claim and has no vehicle and has no proof of damage then the court must issue a court order to the insurance company allowing them to collect the claim. By doing this the insurance company is protected from liability for a financial loss in court.
Companies that are not protected from legal liability when their vehicles are damaged by third parties are less likely to hire staff for driving law suits. While this may seem unfair to the small business owner, it is also necessary for the protection of the legal system.
By understanding all of the reasons why businesses must carry business car insurance it is easy to see why the law requires them to carry it. It is important to note that if you're currently uninsured and you hit someone or they hit you, then you are legally responsible for any damages incurred from the collision.
In a small business you may have a very limited liability policy, so you can afford to pay a higher premium for business car insurance. If your policy limits are very low, however, you may not be able to afford the insurance cost if you were to be involved in an accident.
There are several options available for businesses with regards to automobile insurance. Make sure that you are a little educated before choosing the right auto insurance for your business.