Top 5 Commercial Insurance Myths

There are many operations and assets that come with running a business. To support our Oklahoma business owners, we provide a range of coverage for large and small businesses with our Commercial Insurance and Businessowners Policy. When looking to insure your business operation, it’s helpful to be aware of a few common Commercial Insurance myths.

Myth 1: My Business Is Too Small to Need Insurance

  • Insurance helps keep your business covered. This includes the physical building, employees, inventory and more. It serves to protect against any risks your business could face. For instance, Commercial Insurance could help if your work laptop is stolen or if an accidental fire burns inventory and supplies. Most businesses, regardless of size, will find Commercial Insurance beneficial. 

Myth 2: My Home-Based Businesses Is Covered Under My Homeowners Insurance

  • Homeowners Insurance covers your physical home and its contents. However, business assets related to your home-based business may not be covered. Obtaining Commercial Insurance will ensure that any inventory, assets, and more pertaining to your business are protected in case of the unexpected. 

Myth 3: The Personal Car I Use for My Business Is Covered Under My Auto Insurance 

  • This is similar to the myth above. Since company vehicles could include items pertinent to your business, these items may not be covered under a typical Auto Insurance policy. For example, if inventory is ruined during an accident or stolen. Instead, a Commercial Auto policy would cover your business vehicle, and it would include other features like auto liability and uninsured motorist coverage that could provide protection for the vehicle and extra coverage. 

Myth 4: Commercial General Liability Insurance Has Me Covered 

  • Commercial General Liability coverage serves to keep you and your business covered if operations lead to injury or property damage. However, there are limitations. Contact your agent and discuss if there are parts of your operation that are not covered under Commercial Liability. Also, see if it could instead be protected under a Commercial Umbrella policy or Commercial Property policy. 

Myth 5: I Don’t Need Workers’ Compensation Insurance if I Don’t Have Many Employees

There are many aspects to think about when ensuring sufficient coverage for your business. Reach out to your local OKFB Insurance agent if you have any questions or want to discuss any of these Commercial Insurance myths.

Small Business Vehicle Fleet 101

Expanding a small business can be exciting. It signifies growth and an increase in demand for your product or service. However, with an increase in demand comes an increase in supply. If you are looking to start or manage a vehicle fleet to keep up with demand, keep these tips in mind.

Leasing vs. Owning a Vehicle Fleet

If you identified a need for a vehicle fleet, the next thing to consider is the type of vehicle. Additionally, you should consider whether to lease or own the fleet is in your best interest. There are pros and cons to both options. 

When leasing, there could be a mileage limit, a need to be more mindful of damage, etc., and that could potentially restrict business offerings and means of efficiency. A benefit of owning a fleet is increasing your business’s resources and control. However, with owning you also have the responsibility for regular maintenance and upkeep.

vehicle fleet of cars parked for the nearby small business

Vehicle Fleet Coverage 

1. One of the first things to do when buying a fleet of vehicles is to have it insured. Unlike a personal vehicle that would fall under Auto Insurance, a business vehicle fleet may be best protected under a Commercial Auto policy. In the event of the unexpected, it can help ensure employees and vehicles are covered.

    • Remember to discuss coverage options with an insurance agent. Having the right amount of insurance coverage is critical. Some coverage options may cover vehicle damage and loss, but not the personal property inside. See if purchasing additional coverage to cover personal property could be beneficial to your business.

2. Keeping the policy updated is important once coverage is obtained. Consider scheduling calls with your insurance agent to ensure your policy matches your changes.

    • For instance, adding a newly hired employee to the policy or even removing an employee could be easy to forget and costly if overlooked.

3. To keep your policy premium cost down, it’s important to highlight safe driving practices with your drivers. Additionally, emphasize the importance of having and maintaining a clean driving record. Multiple accidents from an employee could impact a policy premium. See how tickets could impact an auto policy.

man putting boxes in the back of a truck

As you prepare to expand and grow your business, let us focus on ensuring it is covered for your business’s needs. Contact your local OKFB agent for more information on the Commercial Auto coverage options available.

Can A Ticket Impact My Auto Insurance?

Life happens fast and at times it can be easy to speed through. It could be easy to speed to work when running late or accidentally parking in the wrong spot. However, getting a ticket on either of these encounters could impact your Auto Insurance rate. Check out these facts on how a ticket could lead to an increased Auto Insurance premium.

person pulled over and getting a ticket from a police officer

Ticket Violations Can Impact Your Driving Record

Did you know a speeding ticket in Oklahoma could stay on your driving record for up to 3-5 years? The Oklahoma Department of Transportation utilizes a point system to track traffic violations and other penalties. If left unaddressed, this could lead to higher Auto Insurance rates and even the suspension of a license. 

Amount of Traffic Tickets Issued

Speeding tickets are not the only violation that can live on your driving record. For instance, there are actions that can have a lingering impact on an Auto Insurance premium. Actions such as texting and driving, running a red light, out-of-state tickets and DUIs. Also, the amount of tickets and the types of ticket offenses are both used to determine a rate increase or change to your premium.

  • Tip: Practice safe driving habits to prevent a rate increase and future traffic violations. This could involve putting the phone down while driving, paying close attention to state laws, and not eating while in traffic.
car speeding on the road

By practicing safe driving and paying attention on and off the road, you can avoid a rate increase and additional tickets. Also, ensure your vehicle is covered under your Auto Insurance policy and contact your local OKFB agent for additional questions or inquiries.

Guide to Insuring a New Driver

Whether your child is about to obtain their license or you’re looking to get your own Auto Insurance policy, it may seem daunting while trying to find the right coverage. To help, ensure your new driver is protected with these tips.  

Adding a Driver to Your Policy

If you currently have an Auto Insurance policy, you can add a spouse or newly-licensed teen to it. To begin this process, reach out to your insurance agent and go over your current policy to discuss options and rates. There are three things that can be helpful to keep in mind to prepare for this conversation:

  • Review driving records and pay any outstanding fines i.e., tickets, fines, or other violations that could have a direct impact on an Auto Insurance quote. Learn more about the influence tickets have on your driving record here.
  • Adding a new driver could increase an Auto Insurance rate. One way to manage costs would be to re-evaluate and discuss the needed amount of coverage. This could be based on a vehicle’s age and model.
  • Ask about discounts the insurance provider may offer for Auto Insurance. At OKFB, we have an array of discounts across our lines of insurance. 

Shopping for an Auto Policy

Looking to get off your parents’ policy? Start with consulting with your parents’ current insurance agent and see what they can offer. Also, reach out to other insurance providers to ensure you find the best fit for you. It’s important to understand how auto coverage works. Take a look at our glossary of insurance terms to prepare for these conversations. 

Required Coverage

Auto Insurance is legally necessary when operating and owning a vehicle. There are also multiple coverage options available to ensure your specific needs are covered. However, every state has a minimum auto insurance amount that they require. According to Oklahoma’s Insurance Department, Oklahoma follows the 25/20/25 rule, or $25,000 for bodily injury protection per person, $50,000 per accident and $25,000 for property damage protection. 

By working closely with an agent, driving safe and ensuring continuous coverage, you are protecting yourself and building a strong insurance history. Contact your local OKFB agent to talk through this process. It can start when you are ready to add a spouse, teenager or when beginning your journey toward owning your own Auto Insurance policy.