The Benefits of Bundling Commercial Auto Insurance With Other Business Policies

If your business uses cars, trucks, vans or other motor vehicles during operations, you need appropriate risk management and loss control measures, such as commercial auto insurance. However, while purchasing and maintaining adequate coverage is necessary, premiums can add up quickly. Fortunately, there are strategies you can use to limit these costs while maintaining suitable policies, such as through bundling.

What Does Bundling Mean in Insurance?

There’s little nuance to the term “bundling” in the insurance world. When an individual or business chooses to bundle their coverage, it refers to purchasing multiple insurance products from the same carrier. For example, many individuals and families bundle their homeowners and auto insurance with the same provider. Similarly, your organization might find it advantageous to retain several components of its business insurance portfolio by working with the same insurance company.

Why Is Bundling Advantageous?

Although the ownership and operation of motor vehicles may be among the most dangerous and financially risky functions of a business, there are often many other threats to consider. Your company should compile a collection of policies to address these potential risks and exposures. During this process, consider how purchasing multiple types of coverage from the same carrier may reap the following benefits:

• Reduced costs—If your business purchases multiple policies from the same provider, the total sum of its premiums may be lower.
• Improved efficiency—Bundling may help your business enjoy less paperwork and fewer contacts with whom it may need to work to maintain or adjust its coverage portfolio.
• Ideal coverage—Combining insurance products from the same carrier may help you find coverage options that fit together and minimize potential gaps, as well as possible redundancies.
• Strong ties—Working with a single insurance company for many needs may help cultivate a trusted relationship and reduce the chance of coverage not being renewed or canceled.

We’re Here to Help

Contact Davis Insurance Group today to learn more about commercial auto insurance and the possible benefits of bundling coverage.

This blog is intended for informational and educational use only. It is not exhaustive and should not be construed as legal advice. Please contact your insurance professional for further information.