Ezekeil Hudson's Insurance Podcast

Protecting Your Business on the Road: Expert Tips on Commercial Auto Insurance with Ezekiel Hudson

• Ezekeil Hudson • Season 1 • Episode 7

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Ever wondered if your personal auto insurance would cover a work-related mishap on the road? Think again! Join us as we unpack the crucial world of commercial auto insurance with expert insights from Ezekiel H. Hudson of Hudson Agency. This episode promises to arm you with invaluable knowledge on how to avoid potential financial disasters by assessing your business's unique needs and securing the right kind of coverage.

From understanding the essential considerations like vehicle usage, travel distances, and cargo value, to breaking down key coverages such as liability and comprehensive insurance, Ezekiel's expertise helps us paint a clear picture of what your business truly needs to stay protected. Using practical examples, like a florist's delivery van, we highlight how different scenarios demand tailored insurance solutions. Don’t miss out on this guide to ensuring your business remains safe and sound on the road.

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Speaker 1:

Hey everyone, welcome back. Today we're diving into the deep end of commercial auto insurance. You ready.

Speaker 2:

Always ready to talk shop about keeping businesses safe on the road.

Speaker 1:

Love it. So we've got your notes right here, which are super helpful, and we're lucky enough to have some guidance from Ezekiel H Hudson at Hudson Agency to help us unpack this whole commercial auto insurance world. You familiar with him? Oh, absolutely. Ezekiel's a walking encyclopedia of insurance world. Are you familiar with him?

Speaker 2:

Oh, absolutely. Ezekiel's a walking encyclopedia of insurance knowledge, that's for sure.

Speaker 1:

Right, Okay. So to kick things off, let's talk about the why. Why does this even matter? You've got a business, you've got vehicles.

Speaker 2:

And that's where things get interesting. Ezekiel brings up a point in his guide that I think a lot of business owners don't even consider what happens if there's an accident.

Speaker 1:

Oh yeah, Nobody wants to think about that.

Speaker 2:

Exactly, but not thinking about it can be a costly mistake, especially when you realize your personal auto policy is about as useful as a screen door on a submarine if you or an employee is driving for work purposes and something happens.

Speaker 1:

Whoa okay. So that's a bit terrifying. Are we talking? We talking like even a quick run to the post office for stamps?

Speaker 2:

Even that, deliveries, client visits, you name it. If it's work related, your personal policy likely won't cut it.

Speaker 1:

That's wild. So we're talking potential financial disaster for your business if you're not careful.

Speaker 2:

Unfortunately, yeah, legal fees damages the whole nine yards.

Speaker 1:

Yikes. Ok, so that's probably enough to make anyone want to call their insurance agent right this second. But before you do, Hold your horses. Exactly. Ezekiel has some really great advice about not jumping into the deep end without a life vest. Basically, you need to really assess your needs before you even think about getting a quote.

Speaker 2:

Think of it like this you wouldn't build a house without a blueprint right, that's a fantastic analogy.

Speaker 1:

So what are some things business owners should be considering during that blueprint phase? Ezekiel goes through a bunch in his guides, but is there one that really stands out to you?

Speaker 2:

You know, the one I always come back to is how are your vehicles actually being USD for your business? It might seem simple, but the answer can really change your insurance needs.

Speaker 1:

Okay, I can see that. Give me an example.

Speaker 2:

Sure, let's say you're a florist. You might think I need insurance for my van to deliver flowers, which is true. But what if you're also using that van to haul expensive arrangements for weddings? Longer distances, higher value cargo.

Speaker 1:

That changes things for sure. So how does a florist or any business owner figure out if their van life is more casual, cruise or high stakes delivery?

Speaker 2:

It really comes down to the nitty gritty details.

Speaker 1:

Yeah.

Speaker 2:

You know how far are those deliveries, what's the actual value of what you're hauling around? City driving versus, like, rural routes All that plays a role.

Speaker 1:

So painting a clear picture for your insurance agent.

Speaker 2:

Basically, it's kind of like yeah, driving is driving, but a quick grocery run is way different than braving a snowstorm on the highway right 100% and speaking of different scenarios, once you've got a handle on how your vehicles are actually being used, then you can really start digging into the types of coverage you'll need. Let's do it.

Speaker 1:

Then you can really start digging into the types of coverage you'll need. Let's do it. Ezekiel breaks down a whole bunch in his guide Liability to cover those oops, my bad moments when you cause damage to someone else. Comprehensive, which I think is more about protecting your vehicle right Theft, those crazy hailstorms we hear about.

Speaker 2:

Yeah, hail, can do a number on a car. Let me tell you.

Speaker 1:

No kidding. So this is where that whole assessment thing comes into play again. I'm guessing Big time.

Speaker 2:

The type and how much coverage you need really depends on the level of risk your business has.

Speaker 1:

Got it. So let's go back to our florist example. How do they know if they need the basic insurance package or the works?

Speaker 2:

Okay, so let's say they're mainly doing local deliveries in like a small van, not hauling super expensive stuff. They might be fine with a standard commercial auto policy Covers, liability, maybe some basic comprehensive.

Speaker 1:

That makes sense, but what about our florist friend who's transporting those super pricey arrangements for like fancy weddings? What kind of coverage are we talking about then?

Speaker 2:

Oh, in that case they definitely want to beef up that coverage. Higher limits for liability and cargo insurance, for sure. They might even need to look into something called inland marine insurance Protect stuff while it's actually being transported.

Speaker 1:

Inland marine insurance. That's a new one, so it sounds like we're really talking about customizing this stuff, not just grabbing any old commercial auto policy. Huh.

Speaker 2:

You got it, and that actually brings us to something Ezekiel talks about in the guide Standard versus non-standard commercial auto insurance Trips people up all the time.

Speaker 1:

Okay, break it down for me. What's the difference and how do I know which one I need?

Speaker 2:

All right. So picture this Standard commercial auto insurance. It's like your trusty everyday car gets you where you need to go. No bells and whistles. That's for businesses with you know pretty average risk level good drivers, regular vehicles.

Speaker 1:

So our local florist friend, they're probably in that lane right Most likely.

Speaker 2:

But let's say they hit the gas on their business and upgrade to one of those refrigerated trucks for long hauls.

Speaker 1:

Fancy.

Speaker 2:

Right, but that also means a bigger vehicle, maybe some riskier driving conditions. Yeah, that might bump them into the non-standard category.

Speaker 1:

Which is more like a heavy-duty pickup truck.

Speaker 2:

Bingo. It's designed for those businesses that might have a few more dings on their record or use specialized vehicles, you know, like trucking companies, construction crews, even those food trucks we see around town.

Speaker 1:

Okay, makes sense, but is this just about price, or is there more to it?

Speaker 2:

Price is definitely a factor. Non-standard policies usually cost a bit more because, well, the risk is higher for the insurance company. But there can be other differences too, like what's actually covered or limitations.

Speaker 1:

Ah, so this is where we got to watch out for those sneaky exclusions Ezekiel warns about right.

Speaker 2:

Always read the fine print. That's my motto. Whether you're standard or non-standard, you got to know what's covered and what's not.

Speaker 1:

He gave that example about running personal errands with your work vehicle. Like you're on your way to grab some dry cleaning, fender bender happens. Your insurance might be like, nope, not our problem.

Speaker 2:

Exactly, and those exclusions can change from one company to the next. It's like a whole different language sometimes. That's why it's so crucial to have a good agent on your side, someone who can break it all down and find the right policy for you.

Speaker 1:

It's like having a personal translator for insurance speak. Speaking of which, I feel like we've covered a ton of ground here today.

Speaker 2:

We for Insurance Speak, Speaking of which I feel like we've covered a ton of ground here today. We really have. We talked about why commercial auto insurance matters in the first place, how to figure out what your business actually needs, the different types of coverage, those pesky exclusions, even that whole standard versus non-standard breakdown.

Speaker 1:

And don't forget those different perspectives too. It's not just about whether you're a florist or a construction worker. It's not just about whether you're a florist or a construction worker. It's about the specifics of how you operate.

Speaker 2:

Right Rideshare drivers, for example Totally different ballgame than a company with a whole fleet of delivery trucks. The main thing is there's no one-size-fits-all solution here. It's all about finding the perfect fit.

Speaker 1:

So, as we wrap up our deep dive into the world of commercial auto insurance, what's the one thing you want listeners to take away from all of this?

Speaker 2:

Honestly. Don't be afraid to ask questions. The more you know about your options, the better decisions you can make for your business. Knowledge is power, especially when it comes to insurance.

Speaker 1:

Couldn't agree more. All right, everyone. That's a wrap on today's episode. Big thanks to Ezekiel H Hudson for the expert insights. And remember we talked about managing risk with insurance, but what about actively preventing those risks in the first place? Driver safety programs, regular vehicle maintenance just something to think about Until next time. Drive safe out there.