If your business owns and operates a vehicle for any reason, you must have Commercial Auto Insurance. This will help keep your business and assets protected in the event of an accident.
What is Commercial Auto Insurance?
Commercial Auto Insurance is a type of insurance coverage specifically intended to cover a motor vehicle owned and operated under your business. If that vehicle is in an accident, then Commercial Auto Insurance will help keep your business and business assets financially protected from associated costs or legal action.
What Does Commercial Auto Insurance Cover?
Commercial Auto Insurance is similar to traditional car insurance, but some coverages are specific to this type of insurance.
Commercial Auto Insurance includes the coverage of bodily injury and property damage like your personal auto insurance does. For example, suppose your commercial vehicle is in an accident, and the driver is found at fault for the accident. Commercial Auto Insurance helps protect you and your employees from accident-related injuries or damage to property not belonging to your business.
One of the great things about Commercial Auto Insurance is that many coverages are available, making these policies easily customizable. Here are some common coverages under Commercial Auto Insurance Policies:
- Comprehensive Coverage
- Collision Coverage
- Liability Coverage
- Property Damage Coverage
- Medical Payments Coverage
- Uninsured/Underinsured Motorist Coverage
Do I Need Commercial Auto Insurance?
Legally, yes, but that’s not the only reason you should carry it. It’s vital to ensure that your business’ revenue and assets stay protected at all times. Hence, it’s essential to protect yourself proactively when there is an opportunity for legal action against your business. Companies that operate vehicles as part of their day-to-day operations may be eligible for custom Commercial Auto Insurance policies to help cover their fleet. This can apply to trucking vehicles, ride-share, or food delivery vehicles.
Commercial Auto Insurance doesn’t just apply to vehicles used for business. If you or your employees use vehicles for sales, product transfers, or client transportation, your business should have Commercial Auto Insurance coverage.
You can also extend a Commercial Auto Insurance policy to vehicles your business uses but does not own by including coverage for hired and non-owned vehicles on your policy.
How Much Does Commercial Auto Insurance Cost?
The cost of your Commercial Auto Insurance Policy will depend on a few factors. Here are some items that can impact the cost of your policy:
- Number of Vehicles
- Number of People Operating Vehicles and their driving history
- Goods Being Transported in The Vehicle
- Frequency Of Use
- Risk of Incident
You must work directly with an insurance agent to ensure you address all factors of your business so you can get the most comprehensive coverage for your commercial vehicle.
What Are The Benefits of Commercial Auto Insurance?
Commercial auto insurance offers substantial advantages for businesses, safeguarding them against financial liabilities stemming from accidents involving company vehicles. This coverage includes protection from property damage to others, medical expenses for injured parties, vehicle repair costs, and even incidents like theft or natural disasters. Additionally, it often provides higher policy limits compared to personal auto insurance.
Key Advantages of Commercial Auto Insurance:
- Liability Protection: Shields your business from legal claims if you or an employee causes an accident resulting in property damage or injury to others.
- Physical Damage Coverage: This covers the cost of repairs to company vehicles after an accident, including collision, and comprehensive coverage for non-collision incidents like theft, fire, or vandalism.
- Medical Payments Coverage: Pays for medical expenses incurred by employees or passengers injured in a vehicle-related accident.
- Uninsured/Underinsured Motorist Coverage: Offers financial protection if you’re involved in an accident with a driver who has insufficient or no insurance.
- Higher Policy Limits: Provides the option for greater coverage limits compared to personal auto insurance, ensuring enhanced financial protection.
- Fleet Coverage: Enables a single policy to cover multiple business vehicles, simplifying management for businesses with a fleet.
What Isn’t Covered by Commercial Auto Insurance?
Commercial auto insurance generally excludes coverage for:
- Unrelated medical expenses
- Personal belongings inside the vehicle
- Accidents involving an employee driving their personal vehicle for non-work purposes
- Repairs to a rental vehicle
How Much Commercial Auto Insurance Does My Business Need?
The amount of commercial auto insurance required varies by state, as each has minimum coverage requirements. These typically include bodily injury liability, property damage liability, and uninsured motorist coverage.
You can opt for the minimum coverage to meet state mandates or increase your coverage limits for greater protection and the ability to file higher claims.
To save on your commercial auto insurance premiums, consider strategies like implementing better safety practices or selecting lower coverage limits. Consulting with an insurance broker can also help you explore your business insurance options and find cost-effective auto insurance policies.
How Can I Get a Commercial Auto Insurance Policy?
If your business owns a vehicle or operates one as part of your day-to-day business operations, then you should have Commercial Auto Insurance coverage alongside Business Liability Insurance. If you want a quote for Commercial Auto Insurance, reach out to us today!
