Commercial Auto Insurance

Commercial Auto insurance is for anything from using your BMW to visit clients to customized Chevy for your construction business to a food truck

Commercial Auto Insurance

In the bustling world of business, success often hinges on the ability to keep things moving. Whether transporting goods, meeting clients, or attending crucial meetings, your fleet of commercial vehicles plays a pivotal role in the growth of your enterprise. However, with the road comes uncertainty, and accidents can strike unexpectedly, potentially derailing your progress. From fender benders to major collisions, Commercial Auto Insurance ensures that your business is never immobilized due to vehicular mishaps.

Personal vs. Commercial Auto Insurance

If your company owns and uses specifically designated vehicles for business, you need Commercial Auto insurance. That’s common sense.

However, in many instances, the distinction between personal and business use of a vehicle can become unclear. As a result, some individuals might rely on their Personal Auto insurance to cover a car used for business purposes. Unfortunately, this practice can lead to significant issues in the event of an accident.

Personal Auto policies typically exclude any business use. In addition, even though Commercial Auto policies look similar to Personal Auto insurance, they are rated and underwritten differently. Certain coverages, eligibility, exclusions, and limitations differ from Personal Auto insurance policies.

Business Auto insurance may cover certain business exposures and situations that Personal Auto policies do not provide coverage for.

Here are a few examples of when Business Auto insurance or Hired/Non-Owned vehicle endorsement might be needed for proper protection:

Your business owns, leases, or rents vehicles
Employees drive cars that belong to the business or are leased for their use.
Any vehicles used for both personal and business use
You or your employees use personal cars for business purposes during or after business hours, etc.

What Does Commercial Auto Insurance Cover?

Commercial Auto Insurance provides coverage for vehicles used for business purposes. The coverage typically includes protection against various risks that may arise while using these vehicles for commercial activities. The specific coverage may vary depending on the insurance provider and the policy options chosen by the business owner. However, here are some common elements covered by Commercial Auto Insurance:

Liability Coverage

Liability coverage is a fundamental part of Business Auto Insurance. It helps protect your business against financial loss if you or one of your employees is at fault in an accident that causes bodily injury or property damage to others. This coverage includes medical expenses, legal expenses, and litigation settlements or judgments.

Collision Coverage

Collision coverage pays for repair or replacement costs for the insured vehicles if they are damaged in a collision with another car or object, regardless of who is at fault. This coverage is especially essential for businesses that rely heavily on their fleet of vehicles.

Comprehensive Coverage

Comprehensive coverage pays for damage to your vehicles resulting from non-collision incidents, such as theft, vandalism, fire, severe weather (hail, floods, etc.), or hitting an animal.

Uninsured/Underinsured Motorist Coverage

This coverage comes into play if your commercial vehicle is involved in an accident with a driver with little or no insurance coverage or is unidentified (hit-and-run). Uninsured/Underinsured Motorist Coverage helps cover medical expenses (UMBI) and property damage in such situations.

Medical Payments Coverage

Medical Payments coverage pays for medical expenses for you and your passengers’ injuries sustained in an accident involving your commercial vehicle, regardless of who is at fault. It provides essential support for immediate medical needs.

Non-Owned Auto Coverage

If your employees use their personal cars for business, Non-Owned Auto Coverage can protect your business in case of an accident. It typically covers liability claims that may arise from such incidents.

Hired Auto Coverage

If your business rents or leases vehicles for short-term use, Hired Auto Coverage provides liability protection while those rented or leased vehicles are in use.

It’s crucial for business owners to thoroughly review their insurance policies to ensure they have adequate protection tailored to their specific business needs. The type and level of Commercial Auto insurance coverage may vary depending on the size of the business, the number of vehicles, the nature of the business operations, and the state’s legal requirements.

Speak with our experienced commercial auto insurance agents today!