When Do I Need It?
Wondering if you need commercial auto insurance? In general, if a vehicle is used in tasks related to the operator’s occupation, profession, or business (other than commuting), a commercial policy is necessary.
Many business uses and vehicle types may be excluded from personal policies, so be sure you have the right coverage.
You May Need a Commercial Auto Insurance Policy If You:
- Transport goods or people for a fee in your vehicle
- Conduct a service with your vehicle
- Need higher limits of liability because of the nature of your work
- Haul a considerable weight in tools or equipment or towing a trailer used to conduct your business in your vehicle
- Employees operate the vehicle or if ownership is in the name of a corporation or partnership
- Towing a trailer used to conduct your business in your vehicle.
- Employees operate the vehicle or if ownership is in the name of a corporation or partnership.
- You may be legally required to have a business auto policy.
The Benefits of Commercial Auto Liability Insurance:
Commercial vehicle insurance is a policy of physical damage and liability coverages for amounts, situations, and usage not covered by a personal auto insurance policy.
- Auto accident liability
- Medical payments
- Physical damage and collision
- Accidents involving uninsured motorists
- Roadside Coverage
- Enhanced risk segmentation that returns our most competitive rates.
- Additional discounts, including Accident-Free.
- New coverage options up to $1 Million liability limits.
- More flexible payment plans with affordable down payments.
When will your commercial auto pay?
An employee rear-ends a sports car while driving your HVAC installation business’s truck. The accident is the employee’s fault. Your business’s commercial auto insurance policy can cover the cost of repairing the sports car. It can also cover the other driver’s medical expenses for injuries sustained in the crash.
A janitor gets into an accident while driving a cleaning company’s van to a client’s office. No one is seriously injured, but the janitor is brought by ambulance to a local hospital and given X-rays. The cleaning company’s commercial auto insurance policy pays for the ambulance ride and medical treatment.
A tree uprooted by a windstorm falls on a lawn care company’s truck and breaks the windshield. The lawn care business’s commercial auto insurance policy pays for a replacement windshield.
An employee at your IT consulting company is driving to a client’s home when another driver runs a stop sign and hits your company car. The other driver accidentally let his insurance policy lapse and is not insured. Your business’s commercial auto policy can pay for the damage to your car caused by the uninsured driver.
Commercial auto insurance does not cover:
Commercial auto insurance does not cover personal or leased vehicles. However, your business can still be held accountable if an employee gets into an accident in a personal or leased vehicle. Hired and non-owned auto insurance is the appropriate policy for vehicles that your business uses but does not own. This policy is recommended for businesses where employees regularly drive their own cars for work purposes.
Secure your Life’s Hard Work
…with a commercial insurance brokerage provider who understands and will advocate for your needs. Ready to get started? Do not hesitate to send us your questions here for your inquiries about our company and brokerage services. You may also speak with our insurance consultant here for an expert take on the commercial insurance you need.