What Is Commercial Auto Insurance For Businesses?


Commercial auto insurance is a policy designed specifically for vehicles used for business purposes. It usually includes coverages that are unique to businesses and may be more extensive than a personal policy. For example, if your business has a fleet of trucks, your commercial car insurance could help cover costs incurred from a truck accident that causes damage to a trailer or cargo. It can also help pay for medical payments if you or an employee are injured in a work-related car accident.

Bodily Injury Liability

Bodily Injury Liability insurance is one of the most important coverages a business should have. It protects you financially if you’re sued by someone who was injured by your actions or the actions of an employee. It also pays for legal and court costs if you’re sued. It helps cover medical expenses and other damages awarded up to the policy’s limits. Whether you have one or many vehicles, liability insurance is a must-have for any business. It’s different from personal auto insurance in who’s eligible, coverage, exclusions and limits. If you’re driving a company car and an accident occurs, commercial auto insurance can pay for your injuries and any other damages to the other party. In addition, it can also help cover the cost of a lawsuit if you’re found liable for an accident.

When purchasing bodily injury liability insurance, it’s best to choose limits that match the value of your assets. The higher your limits, the more money you’ll save if you’re ever involved in a legal suit. In addition, it’s a good idea to have a minimum of $100,000 per person and $300,000 per accident in this type of insurance. Each state has different requirements, but it’s a wise decision to have these limits on your policy. You may need to purchase medical payments coverage if you have employees who use their own personal cars to do work related to the business. This coverage pays for expenses associated with medical bills, loss of income and funeral costs if they’re injured in a crash.  You should always contact a licensed insurance agent to learn more about the specifics of your commercial auto insurance needs and to get an accurate quote. They’ll be able to guide you through the process and make sure you have all of the protections that are right for your business.

Property Damage Liability

If you are a business owner or an employee in the auto industry, property damage is a risk you must consider. While it may not be the most fun part of owning a business, having the right commercial insurance coverage will help protect you from costly claims that could put your savings and assets at risk. The most common type of property damage liability is car accident injuries and damages to a vehicle, but it can also cover a variety of other losses that may occur. For instance, if you drive your company vehicle and accidentally crash into someone’s fence or mailbox, your property damage liability insurance will pay to repair or replace that damage. Another common type of property damage that can be covered by commercial insurance is the loss or destruction of tangible property belonging to a third party, like a handbag, table, smartphone, or jacket. It can also cover losses caused by vandalism and theft, such as a customer’s throw rug that gets lost during a cleaning job or a piece of furniture that is stolen from a client’s home or office. You can choose a policy with one combined limit, which provides more comprehensive protection than policies that separate limits for injury and property damage. A single limit means that the amount you are financially liable for in the event of a claim will not vary depending on the circumstances surrounding an accident, making it less likely to cause gaps in coverage. Whether you own or rent, the level of property damage liability you carry will affect your commercial auto insurance rates. The best way to ensure that you have the coverage you need is to work with an insurance agent who can help you evaluate your situation and recommend a policy.

Comprehensive Coverage

Whether you have an old-school gas-powered food truck or a new-school hybrid delivery van, any commercial vehicle used for business purposes needs a specific type of insurance. The right commercial auto policy will combine adequate coverage and appropriate policy limits with reasonable deductibles and monthly premiums. Comprehensive Coverage is the most common form of insurance for businesses, and it protects you against losses like fire, theft, floods, and other non-traffic-related events. It can also help cover damage to your vehicle from things that aren’t covered under collision, such as falling branches or equipment. The cost of commercial auto insurance will depend on the size and use of your vehicles, as well as the driving record of each driver. For example, if you have a heavy food truck with a grill and a deep fryer, your rate will be higher than if you have a small delivery van with minimal equipment. You should get a quote from multiple insurers to ensure that you’re getting the best price for the level of coverage that you need. You’ll need to consider the actual cash value of your vehicles, the deductible you’re willing to pay, and the age of your vehicles. Commercial auto policies are usually more expensive than personal car insurance policies, but you can often find affordable rates if you shop around. A good agent will help you determine what type of policy best fits your company’s needs and budget.

A good agent can also provide tips on how to reduce your business’s risk. For instance, you may want to add a blanket coverage to protect your employees’ cars from theft or other liability issues. Or, you may need to insure your business’s tools and equipment with a separate policy.

Collision Coverage

Commercial auto insurance is designed to protect your business assets in the event of an accident. This coverage can include liability, collision and comprehensive policies. Collision coverage helps pay for repairs if your vehicle is damaged in an accident, regardless of who caused the collision. It can also help cover the cost of replacing your car if it’s stolen. The amount of collision coverage you get depends on several factors, including the value of your vehicle. You can also choose a deductible. If you opt for a higher deductible, you can save money on your premium over time. However, you may be required to pay more out-of-pocket if you make a claim. Businesses that rely on specialized vehicles to conduct their operations need commercial auto insurance to protect them against financial loss in the event of an accident. This includes food trucks and other types of businesses that rely on mobile equipment for delivering their products. It’s also necessary for taxicabs, limousines and private cars used for transporting people. Ridesharing vehicles, like Uber and Lyft, also need commercial insurance. Another benefit of a commercial auto policy is that it’s often tax deductible as a business expense. This can help you save on your monthly premiums, which is especially helpful for small businesses and startups. You can customize your commercial auto policy to meet your business’s specific needs. For example, some companies may need to have collision and comprehensive coverage, while others may require only liability or medical payments coverage. Your agent can help you select the right policy and determine whether or not it makes sense to drop one of these types of coverage.

Hired and Non-Owned Vehicle Coverage

If you run a business that includes hiring, renting or borrowing vehicles for your employees or customers, or if your employees drive personal vehicles on business, it’s important to protect your company and its assets with hired and non-owned vehicle coverage. This insurance pays for liability claims, medical payments or damages that arise from the use of hired or non-owned vehicles in your business. Hired and non-owned auto insurance can be added to your commercial automobile policy or as an optional extra to your general liability policy. It is most often purchased for businesses that rent cars or lease vehicles long-term and/or have employees who use their personal vehicles for work purposes. The cost of hired and non-owned auto insurance varies depending on the type and level of coverage desired, as well as the risks involved. Generally, it’s cheaper for small businesses that frequently rent cars or lease vehicles and are relying on employee-owned vehicles during peak work periods.  Hiring and renting cars is also a common practice for contractors. Many contractors hire trucks, vans or other heavy vehicles on a short-term basis to transport materials and equipment. If these vehicles are in a car accident and damage someone else’s property, hired and non-owned auto insurance covers the third-party claim, even if the contractor’s general liability coverage isn’t enough.  If you’re concerned that your business may be exposed to financial liability due to the use of rented or personal vehicles for work, speak to an experienced professional insurance agent about adding hired and non-owned auto insurance to your commercial automobile policy or general liability insurance. They will help you understand your company’s needs and risks, and how this coverage can fit in with your existing business insurance policies.


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