All You Need to Know About Commercial Auto Insurance

Commercial auto insurance

Commercial vehicle insurance covers cars, trucks, and vans used in businesses. Large fleets and small businesses should be properly covered by commercial auto insurance.

Commercial Vehicle Insurance: Overview

Commercial vehicle insurance is a coverage policy that covers physical damage and liability for amounts and situations. It is not a personal auto insurance policy. This type of insurance policy covers only commercial vehicles, right from automobiles used for business purposes, including business cars, to several types of commercial trucks and vehicles.

Types of Vehicles Covered by Commercial Auto Insurance Policy

Business vans, box trucks, food trucks, and service utility trucks are some of the examples of commercial vehicles that require a commercial auto insurance policy that includes coverage for employees operating that vehicle as well as equipment inside. Commercial auto insurance is also known as car insurance, truck insurance, or fleet insurance. This coverage policy is majorly associated with trucks or more recognized work vehicles. However, it also includes regular cars and automobiles that are used for business purposes.

Why Do You Need to Invest in Commercial Vehicle Insurance?

Specific business usage and vehicle types are excluded from personal auto insurance. Since personal vehicle insurance policies are not meant for businesses, they are written differently. Being a business owner, you need a particular type of coverage policy to protect your commercial vehicles, and this is something you could find in a commercial auto insurance policy.

Types of Commercial Vehicle Insurance

Commercial vehicle insurance provides coverages such as liability, collision, comprehensive, medical bill payments, and uninsured motorist coverage. The major differences between a commercial auto insurance policy and personal auto insurance policy are eligibility, coverages, definitions, exclusions, and limits. Commercial Auto Insurance includes:

Bodily injury liability coverage: It protects you from paying for bodily injury or death resulting from an accident for which you are guilty.

Property damage liability coverage: It protects you if your vehicle accidentally damages someone else’s property. In most of the cases, it provides you with a legal defense.

Combined single limit: It provides separate limits that apply to bodily injury claims for property damage. This policy saves you a huge amount of money.

Medical payments: It saves you from paying for the medical expenses of the driver as well as passengers in your vehicle incurred as a result of a covered accident, and you found guilty.

Uninsured motorist coverage: This coverage policy pays for your injuries as well as property damage caused by an uninsured or hit-and-run driver.

Comprehensive physical damage: It pays for damage to your vehicle from flood, fire, theft, vandalism, and other covered perils.

Collision coverage: It will pay for damage to your vehicle when it gets hit or is hit by another object.

Commercial Auto Insurance also covers

General liability: It covers business property damage or bodily injury to others.

Professional liability: It protects you from hassle if you make an error and/or are sued.

Business owner’s policy: It covers equipment and merchandise along with bodily injury to others or property damage on your areas. It also covers damage to the areas as well as business interruption expenses.

Workers’ compensation: It includes your employees if they get injured while working.

Today, there are a number of insurance agents that help in providing the right type of insurance coverage to protect you and your business from risk and saving money. If you are interested in commercial auto insurance, simply get in touch with the right type of insurance agent and enjoy the benefits of coverage policy.


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