What is commercial auto insurance?
As a business owner, you need to know that the vehicles used for your business need the same kind of insurance as your personal car, including liability, collision, comprehensive, medical payments/personal injury protection as well as coverage for uninsured motorists. This type of business insurance covers a wide variety of commercial vehicles from business cars, pickup trucks to vans and trailers.
Very often business owners use the same vehicle for both their personal use and business operations. However, if the vehicle is owned specifically for the business, you need to make sure to have the name of the firm/company on the policy as the ‘principal insured’ instead of your name. This way you can avoid an unexpected, confusing situation of a claim against you.
Why do I need commercial auto insurance?
Your business function often depends on various vehicles used every day as an important part of daily routine. As a business owner, you pretty much have no control either over drivers on the road or different weather conditions. Therefore, a commercial auto insurance policy is essential for the protection of all your business vehicles in case of an unexpected accident or situation. Commercial auto insurance may cover collision damage costs, medical payments, damage caused by a natural disaster and much more.
Commercial Auto Insurance Coverage Options
Bodily Injury Liability Coverage:
Helps to pay the cost of damages due to bodily injury to others caused by you. It also helps to pay your defense and court costs in case you are being sued.
Property Damage Liability Coverage:
Helps to pay the costs of property damage to others caused by you. It will also help you to pay your defense and court costs if you are being sued.
Personal Injury/Medical Payments Coverage:
Helps to pay necessary medical and funeral costs for covered people.
Helps to pay for a covered vehicle that is damaged by collision with another object.
Helps to pay for the loss or damage to an insured vehicle, which wasn’t caused by collision or vehicle rollover.
Uninsured/Underinsured Motorists Coverage:
Helps to pay for injuries, and rare property damage situations, when you are in an accident with another person who is uninsured or doesn’t have enough liability insurance.