Commercial Auto Insurance

Everything You Should Know About Commercial Auto Insurance
Probably you have insured your business with liability insurances, such as professional liability insurance and general liability, to protect it against any potential risks that might require unexpected costs. That’s is commendable. But, what about the business vehicles? Are you aware of the benefits of commercial auto insurance policy? Keep reading as we unfold the untold about this insurance policy.

What is Commercial Auto Insurance
Commercial auto insurance policy, also known as business automobile policy, is insurance coverage that is used for business vehicles rather than personal use. Typically, it may be used to cover business trucks, a fleet of taxicabs, or cars that are used for business purposes. It helps to cater to the financial cost that your business vehicle might incur in the event of an accident, damage, or theft. It can also help to provide for medical and lawsuits expenses associated with accidents. This type of insurance is a bit expensive compared to the standard car insurance.

Who Fits for a Commercial Auto Insurance
For drivers who use their personal vehicles to commute and on rare occasions, meet clients, the personal insurance policy may cater enough coverage for them. However, commercial auto insurance might be better if:

  • Your vehicle is registered under the business name
  • You frequently use your personal vehicle for business purposes
  • Your employees drive a business vehicle.

How Commercial Auto Insurance Works
Commercial auto insurance works by insuring business vehicles, passengers, as well as commercial drivers. In case of an accident caused or involving your business vehicle, you can file a claim and receive compensation that will help you recover from the loss or damage.

Types of Commercial Auto Insurance Coverage Available
There is four major coverage offered from this insurance policy. They include:

  • Medical payment coverage – caters medical expenses and hospital bills if you or your passengers are injured in a car crash.
  • Physical collision and damages coverage – pays for repair resulting from a variety of factors other than a car accident.
  • Auto liability coverage – helps to pay for bodily injury or damages caused by your vehicle.
  • Uninsured motorist coverage – caters to damages caused by an uninsured vehicle.

Benefits of Commercial Auto Insurance Policy

  • The major advantage of commercial auto insurance is the coverage it offers to both your employees and you.
  • Makes your business compliance with local and state laws
  • It protects not only your commercial vehicles but also your whole business.