If you own a vehicle, it’s important to know what kind of Commercial Vehicle Insurance you need. You’ll likely already have personal auto insurance and homeowner’s or renter’s insurance, but what about your business? Business vehicles are subject to some unique risks that can’t be covered by homeowner’s or renter’s policies.
What Is Commercial Auto Insurance?
Commercial auto insurance is designed to cover the costs of a vehicle that is used for business purposes. It’s not the same as personal auto insurance, which covers you when driving your own car or truck. Commercial auto insurance can cover multiple vehicles and be customized to meet your business’s needs.
Commercial auto insurance can be divided into three types: commercial vehicle liability, physical damage, and business interruption. Commercial vehicle liability covers the costs of any accidents that occur while driving your vehicle for business purposes.
Physical damage covers losses from accidents like dents, dings, glass breakage, and other types of damage occurring during the use of the insured vehicle. Business interruption coverage is designed to help pay for lost income if an accident causes your operation to shut down temporarily or permanently.
Commercial auto insurance can help protect you and your business in a variety of situations. If you’re the owner of a small business, it’s important to know how commercial auto insurance works so you can make an informed decision about what type of coverage is right for you.
Who Needs to Buy Commercial Vehicle Insurance?
If you’re a business owner, you need commercial vehicle insurance to protect your company. If an employee drives a company vehicle or is responsible for maintaining it, they also need commercial vehicle insurance coverage.
Any business that leases vehicles to others needs to purchase this coverage because they are legally liable in the event that someone is injured while using their equipment. Finally, if your business rents out vehicles or equipment on a regular basis, then it’s important that you have enough Public Liability Insurance protection available in case something goes wrong with one of them.
Some people think that if their business only owns one car or truck, then it doesn’t need commercial vehicle insurance.
However, this isn’t the case. If an employee uses a company vehicle for personal use and gets into an accident, they could be held liable for damages.
For example, if someone is injured while using your truck to move furniture from one place to another and they sue you as a result of their injuries—even though they weren’t working at the time—then they can still go after your assets.
What Does a Business Auto Policy Cover?
A business auto policy will cover you and your employees. It also covers damage to a vehicle that’s used for business purposes, or when an employee is driving personal vehicles on company business. Your coverage options typically include:
- Liability coverage: This pays for injuries or property damage caused by your vehicles in an accident.
- Collision coverage: This covers the cost of repairs to your vehicle if it’s ever hit by another car or object while it’s parked or being driven.
- Comprehensive coverage: This pays for any loss resulting from theft, fire, vandalism, windstorm, or flood damages―all without regard to who owns the vehicle or who was at fault in causing the loss.
If you have a business, you need Commercial Vehicle Insurance. It protects your vehicles from driver negligence, theft, and vandalism. The best part? It’s affordable!