Whether you use a single vehicle or a fleet of vehicles for your business, buying commercial auto insurance ensures they are covered for damage, loss, and liability. This protects your business from financial losses you may have to incur if your commercial vehicles are not insured.
This blog discusses what commercial auto insurance is and the types of coverage it offers for your business vehicles.
What is Commercial Auto Insurance?
Commercial auto insurance covers repair and replacement costs, medical bills, and legal fees for accidents involving your business-owned vehicles. When your company cars, delivery vans, box trucks, food trucks, and other similar vehicles are damaged, stolen, or vandalized, or when they cause damage and injuries to others, your commercial auto insurance policy offers the required financial protection.
You may be self-employed and drive the vehicle yourself or have vehicles that your employees drive. You need commercial auto insurance if you use the vehicle for:
- Conducting your business
- Transporting tools, equipment, or products
- Transporting clients
What Does Commercial Auto Insurance Cover?
Commercial auto insurance includes several coverages, such as:
Bodily injury liability
It covers third-party injuries in an accident when your vehicle causes the accident. It may also cover legal costs if sued.
Property damage liability
It covers third-party property damage to another vehicle or property if your vehicle causes the damage and may also pay your legal fees in case of a lawsuit.
Combined single limit (CSL) liability
It offers a single coverage limit for both bodily injury and property damage per covered occurrence that may involve one or more persons.
Uninsured and underinsured motorist coverage,
It covers your injuries and vehicle damage in an accident if the at-fault driver either has no insurance or insufficient coverage that may not be enough to pay your medical or repair bills.
It covers your medical bills if you or the passengers in your vehicle are injured.
It covers damages to your vehicle in a collision regardless of who the at-fault driver is.
It covers damages to your vehicle by a covered peril such as fire, theft, vandalism, and specific natural elements.
Are Tools and Equipment Covered in Commercial Auto Insurance?
Your commercial auto insurance may not cover tools and equipment not attached to the vehicle but only being transported. You may need a business owner’s policy or general liability coverage to claim for loss or damage to tools and equipment kept in your vehicle.
Who Are Covered by Commercial Auto Insurance?
For assured coverage, you must add the names of all individuals who may drive your business vehicle regularly to your commercial auto insurance. They may be your employees or family members.
When Must You Buy Hired and Non-Owned Auto Insurance?
If you use rentals for your business operations or employees, at times, use their vehicles for business purposes, you must consider buying hired and non-auto insurance coverage for added protection.