Commercial Auto Coverage
Commercial Auto Coverage is an insurance policy designed to protect businesses from financial losses related to accidents involving vehicles used for business purposes, covering property damage, bodily injury, and medical expenses if a company-owned vehicle is involved in an accident. Whether driven by an employee or the business owner essentially, it's insurance for work vehicles like company cars, vans, or trucks used for business activities.
Key points about Commercial Auto Coverage:
Who needs it:
Any business that uses vehicles for work, including delivery services, contractors, service providers, and companies with sales representatives who drive for business meetings.
What it covers:
Liability coverage: Protects against legal costs if your business vehicle causes an accident resulting in injuries or property damage to others.
Collision coverage: Pays for repairs to your company vehicle if involved in a collision with another vehicle.
Comprehensive coverage: Covers damage to your vehicle from non-collision events like theft, vandalism, fire, or natural disasters.
Medical payments coverage: Helps cover medical bills for you and your passengers injured in an accident, regardless of fault.
Types of vehicles covered:
Cars, vans, trucks, SUVs, service utility trucks, box trucks, depending on the business needs.
Important considerations:
Employee driving: Commercial auto insurance can cover employees who drive their personal vehicles for business purposes (with specific policy provisions).
Coverage limits: Choosing appropriate liability limits is crucial to protect your business from significant financial losses in case of a major accident.