One Car Accident Can Be Financially Devastating. Get Commercial Auto Insurance to Protect Your Business.
Commercial auto (or business auto) insurance provides coverage for cars, trucks and any other vehicles used in business operations. Similar (but separate from) personal auto insurance, commercial auto insurance provides liability, collision, comprehensive, personal injury and uninsured and underinsured motorist coverage for the business owner. A business owners policy (BOP) does not include commercial auto coverage; commercial auto coverage must be purchased separately.
Under a business auto policy, each vehicle your business owns or uses can be scheduled on the policy, along with corresponding coverage for that vehicle. Different vehicles can be insured with different levels of coverage, depending on your needs and the way that you use the vehicles. But only commercial auto coverage can provide the liability protection you need to protect your business in the event of a serious car accident involving a car being driven for business purposes.
Commercial auto insurance can be purchased for:
- Vehicles that your business owns
- Vehicles that your business owns, hires or leases
- All vehicles that are used for business purposes, including those that the business does not own, hire or lease (i.e., when you or your employees drive personal vehicles for business purposes)
Once you have determined which vehicles need coverage, a commercial auto policy can provide the following types of coverage:
- Physical damage (comprehensive and collision) coverage. Comprehensive coverage pays for vehicle damage due to theft, vandalism, flood, fire and other specified causes of loss. Collision coverage pays for vehicle damage when it hits or is hit by another object.
- Liability coverage, including bodily injury and property damage liability coverage. Bodily injury liability coverage protects your business if you or an employee cause an accident that leads to injury or death. It may also provide coverage for a legal defense. Property damage liability coverage offers protection if your covered business vehicle accidentally damages another person’s property.
- Medical payments or no-fault personal injury coverage. This coverage pays for medical expenses of the driver and passengers who are injured in an accident, regardless of who is at fault for the accident.
- Uninsured motorist coverage. This pays for injuries and property damage caused by an uninsured motorist or a hit-and-run driver. It may also cover damage or injuries caused by an accident with an underinsured motorist.
Businesses with large fleets and those with just one business auto need commercial auto insurance. Commercial auto insurance is priced differently than personal auto insurance, even though it provides similar protections. Commercial vehicle insurance is subject to different eligibility requirements, coverage definitions, exclusions and limitations than most personal auto policies, so you need to make sure you understand the differences.
If you are unsure if your business needs commercial auto insurance, we can help you make the determination based on your answers to the following questions:
- How are vehicles used for your business?
- Who will be driving the vehicles for your business?
- Do you own, rent or lease vehicles used for your business?
- Will you or your employees be driving personal vehicles for business purposes?
Together we can decide if you need commercial vehicle insurance, but the rule of thumb is, if any driving is done for your business—regardless of who owns the vehicle—only a business auto policy can provide appropriate liability coverage to protect your business from the financial devastation that can result from just one car accident.
Questions about commercial auto insurance? We can help. Contact us today to learn more.