Business Insurance; What is commercial auto insurance for businesses?

Commercial auto insurance is one of the few business insurance types that is required by state law. Commercial vehicle insurance will cover cars, vans, trucks and more used for daily business operations. Large companies with many vehicles to small businesses with only a couple vehicles should consider commercial auto insurance.

What is commercial auto insurance?

Commercial auto insurance is a business insurance policy designed to cover your company for physical damage and liability while your employees are on the road. Commercial vehicle coverage will cover your business beyond a personal auto insurance policy. Commercial auto insurance will cover many types of company vehicles, commercial trucks and more.

What kind of vehicles are covered by a commercial auto insurance policy?

Food trucks, box trucks, work vans, and service utility trucks are a few examples of what may be covered. This coverage can include the employees operating the vehicles and the equipment inside as well. Other names you may have heard this form of business insurance called are commercial vehicle insurance, truck insurance, commercial car insurance and fleet insurance. 

Why do you need commercial auto insurance?

There are some vehicles that are excluded from personal auto insurance policies. The majority of personal auto insurance policies are not designed for business purposes. They are written and rated in different ways. As a business owner you will often need coverage that is found in a commercial auto insurance policy. 

What does commercial auto insurance cover?

Commercial auto insurance is still very similar to personal auto insurance coverage. Mainly in the protection it provides such as liability, collision, comprehensive coverage, medical payments and uninsured motorists. Although, they each still do have their differences. Things such as eligibility, definitions, coverages, exclusions, limits and more can differ between your commercial auto insurance policy and your persona auto insurance policy.

What are the coverages in a commercial auto policy?

• Bodily injury liability coverage – Commercial auto insurance pays for bodily injury or death resulting from an accident for which you are at fault and in most cases provides you with a legal defense.

• Property damage liability coverage – Commercial auto insurance provides you with protection if your vehicle accidentally damages another person’s property and in most cases provides you with a legal defense.

• Combined single limit (CSL) – Liability policies typically offer separate limits that apply to bodily injury claims for property damage. A combined single limits policy has the same dollar amount of coverage per covered occurrence whether bodily injury or property damage, one person or several.

• Medical payments, no-fault or personal injury coverage – Commercial auto insurance usually pays for the medical expenses of the driver and passengers in your vehicle incurred as a result of a covered accident regardless of fault.

• Uninsured motorist coverage – Commercial auto insurance pays for your injuries and, in some circumstances, certain property damage caused by an uninsured or a hit-and-run driver. In some cases, underinsured motorist coverage is also included. This is for cases in which the at-fault driver has insufficient insurance.

• Comprehensive physical damage coverage – Commercial auto insurance pays for damage to your vehicle from theft, vandalism, flood, fire, and other covered perils.

• Collision coverage – Commercial auto insurance pays for damage to your vehicle when it hits or is hit by another object.

If you would like a free custom commercial auto insurance quote, please give us a call today at 916 313 6100