Commercial Auto Insurance

What is Commercial Auto Insurance?

Commercial auto insurance provides liability and physical damages coverage for business vehicles. This can cover any vehicle used for business, be it a truck, car or van. You need this type of coverage if you use vehicles to transport goods, equipment or people from one point to another for business purposes. The company is responsible for paying premiums and deductibles. It doesn’t matter if the company is a small business with one car or a large business with a fleet of vans, you’ll need insurance to legally operate the vehicles.

Commercial Car Insurance Coverage

This coverage is specifically for business vehicles. If you’re running a business, then you shouldn’t put any of the business vehicles on a personal auto insurance policy. If you file a claim and the insurer discovers you were using the vehicle for business purposes, then the claim will likely be denied. Commercial coverage ensures that all your business vans, trucks and cars are properly covered.

Who Needs this Coverage?

Any business that uses commercial vehicles needs this coverage. It’s required by law to have coverage for any vehicle on the road. You need this coverage if you or your workers use company vehicles for business. You also need it if employees use company-owned, rented or leased cars.

Types of Coverage

If nothing else, you should have commercial car insurance liability coverage. You can get additional coverage, but liability is the bare minimum that you need. This is important because it’s required by law. Also, liability protects your business from financial losses if one of your vehicles is involved in an at-fault accident. Usually, this coverage pays for injuries, third party property, and medical expenses. You also might want to consider collision and comprehensive coverage.

Speak with an insurance agent to make sure you get the best coverage for your business.