If your business utilizes vehicles, you most likely have a business auto policy. A commercial auto policy will protect your cannabis business in the event that you or one of your employees has an accident in a business-owned vehicle. Auto accidents are perhaps the most common of business insurance claims, and when an accident occurs resulting in bodily injury or property damage, your business could be sued for millions of dollars. Constructing a business auto policy within the cannabis industry can be complicated, and business owners often have gaps or omitted endorsements that leave their business open to financial disaster. Working with a knowledgeable insurance agent who understands your marijuana business and the risks associated with vehicles is your next step to ensuring the survival of your business. Many business owners primarily drive a company owned vehicle throughout the course of their day. In fact, often business owners do not even own a personal vehicle, which can leave the business owner and his/her family at risk. If you are a business owner who only drives a company owned vehicle, and you have no personal auto insurance policy, you need an endorsement on your business auto policy called Drive Other Car coverage. This endorsement will provide you and your spouse with insurance coverage for the use of a vehicle not listed on your business auto policy. Even with this endorsement, other members of your household (other than you and your spouse) will still not have insurance coverage for the use of another’s vehicle unless you specifically add them to your business auto policy. At Budrisk, our business auto specialists can help you restructure your commercial auto policy to include this important coverage.
Whether your business owns vehicles or not, you may need an endorsement called Hired and Non-Owned Auto coverage. This endorsement provides liability protection when a vehicle owned by an individual other than the business is used on the company’s behalf. This endorsement can extend liability coverage for vehicles your business rents or borrows.
Your business may have only one vehicle, or a fleet of 5 or more. In any event, one bad accident can cripple your business’ financial well-being. A prudent business owner acknowledges the risk of auto related accidents and acts accordingly. From a risk management perspective, a wise business owner will follow common guidelines; select drivers carefully with reference and motor vehicle records checks, express a management attitude encouraging safety and provide incentives to safe drivers, frequently train employees on driving rules and route hazards, properly maintain all vehicles, keep accurate records of vehicles and drivers, and be aware of accident procedures and emergency plans. These steps, combined with many others and a strong insurance policy, can protect your business from auto liability claims.