Commercial auto insurance provides coverage to vehicles that are used in a business capacity. This type of coverage is separate from regular automobile insurance and is important for every business to have. Vehicles that should be added to a commercial policy are trucks, vans, automobiles, and industrial vehicles.
Personal vehicles that are used for business purposes such as meeting clients, picking up supplies or running errands should be included in the policy. Vehicles used for business reasons open the company up to greater liability; it’s risky not to insure your company’s assets.
Commercial auto insurance works much like a personal auto policy. It covers drivers for liability, collision and comprehensive insurance. Liability coverage pays legal fees, property damage, medical bills and other damages if you are at fault. Comprehensive and collision insurance covers damages incurred when another person is at fault. It also protects you from loss from weather damage, theft, and other unforeseen events.
If you’re hit by a driver who is underinsured or even worse has no insurance, the policy will pay for damages. If you have a passenger who is injured, the coverage takes care of the passenger’s medical bills no matter whose fault it was. The policy is set up to ensure that your business assets are safe, and to make you whole again in case of loss.
There are other types of commercial automobile policies that may be a good fit for your business. Hired auto coverage protects you from liability if you borrow, rent, or hire a car in a business capacity. Employer’s non-ownership policy insures your employees while driving their personal vehicles while conducting business. Commercial trailers should also be included when considering your policy needs.
Commercial policies are a must when it comes to protecting your business vehicles from damage. If you have employees that drive your company vehicles or use their own autos, you open yourself up to increased risk of lawsuits, medical bills, and potentially bankrupting your business. Just as commercial insurance is important for your business property, covering your vehicles is equally vital.