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Commercial Auto Insurance

What is Commercial Auto Insurance?

Commercial auto insurance is for vans, cars, and trucks used for business purposes. One vehicle needs coverage the same as a fleet of vehicles. Most states require auto insurance, and that requirement extends to business vehicles.

Who Needs Coverage?

Commercial car insurance is for any company that uses vehicles for business purposes. A taxi company would need coverage for all of its cars. A package delivery service would need coverage for its delivery trucks and delivery vans. A transport company would need coverage for its trucks. Even if the business only has one or two vehicles, insurance is still recommended.

How Does Coverage Work?

Commercial coverage is similar to a personal auto policy. The difference is it provides coverage suited to business situations, such as coverage for a fleet. But when an incident occurs, you file a claim just like you would with your personal policy. The insurance company will either deny or approve your claim. In most cases, you’ll only get denied if the incident isn’t covered by the policy.

Types of Coverage for Commercial Vehicles

Comprehensive coverage pays for damages caused by fire, flood, vandalism, theft, and additional mishaps. Not all polices are the same. You need to refer to your policy for details.

Collision coverage pays for damages caused when your vehicle collides with another object. The insurance company will generally cover this cost, regardless of fault.

Liability for property and bodily harm pays when you’re at fault for harming someone or their property. If your business is hit with a lawsuit, insurance will likely help with legal fees and defense.

Medical payments or personal injury coverage pays the medical expenses of your driver or passengers in a company vehicle. This coverage generally pays expenses regardless of who is at fault for the accident.

Benefits of Coverage

Commercial auto coverage can save your company from ruin. Any company, big or small, can face financial ruin as the result of an auto accident. Commercial coverage helps with large expenses that could otherwise bankrupt your business. And coverage also puts your business in compliance with the law.