business person filling out an auto insurance certificate form with a calculator and toy car on the desk

Is commercial auto insurance right for you?

Commercial auto insurance is designed for those who use vehicles for businesses and business purposes. This type of insurance differs from personal auto insurances because there is a greater liability insurance requirement. Do you know whether or not your vehicle should be commercially insured? Here’s a breakdown of who commercial auto insurance policies apply to and what is generally covered in a policy.

Most businesses deal with some or all of the following:

      Employees

      Customers

      Work equipment/gear

      Passengers

In order to cover any of these items, commercial auto insurance is required. If you use your vehicle for work, it must have commercial insurance. Although most think of commercial vehicles as large trucks or rigs, other types of vehicles such as pickup trucks, cars, and sport utility vehicles can be commercially insured.

Fleet insurance is also a part of commercial insurance. Examples of vehicles that require fleet insurance include:

      Any type of truck (dump truck, box truck, catering truck, refrigerator truck, etc.)

      Limousines

      Utility vans

      Flatbeds

 (Don’t see your vehicle here but are wondering if it should be commercially insured? Contact us for more information!)

Now that we’ve discussed who commercial auto insurance applies to, let’s discuss what it covers. The coverage for a commercial auto insurance policy is similar to that of a personal policy, except this type covers additional add-ons associated with a business. Commercial insurance covers your employees, equipment (loading and unloading goods and materials), and business in the event of a lawsuit.

How do you know how much commercial auto insurance/coverage you need?

The liability insurance requirements are usually outlined by your state. Even if you do not own the vehicle that is being insured, you might also be required to have comprehension and collision coverage. This coverage pays for damages to the vehicle if you are at fault in an accident or are the victim of fire/weather damage.

Are there other policies that I should include for my business?

Other types of policies that may be added include uninsured/underinsured motorist insurance, PIP and medical payments coverages, emergency roadside insurance, and personal effects insurance. Uninsured/underinsured motorist insurance protects you in the case of an accident with a driver who does not have insurance or does not have enough insurance. PIP and medical payments coverages help to alleviate costs of injury due to an accident. Emergency roadside insurance helps in cases where you are left alone on the road. It can also help with towing expenses, battery services, and tire changes that you may need. Personal effects insurance protects you and your employees’ belongings in the case of theft.

 

https://www.dmv.org/insurance/who-needs-commercial-auto-insurance.php

 

1 thought on “Is commercial auto insurance right for you?”

  1. Oh, hello! This article surely makes me think of my boss who wishes to purchase a couple of cars next year so any staff can use them for work purposes. Maybe he should seek some advice from a professional first to determine which policy suits the cars best later on. Anyway, kudos to you for showing us that we could acquire coverage related to roadside emergencies too when finding an insurance for our commercial vehicle as well.

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