Commercial auto insurance involves insurance of the vehicle you use for commercial purposes. It provides coverage on vehicles, trailers, and even recreational vehicles that are registered under a business, due to damage by accidents and other sorts of incidents.
You need to have this policy along with a personal auto insurance policy. Personal policy doesn’t usually cover vehicles used for business purposes.
In this article, we will guide you completely, which will be beneficial for you in your Commercial Auto Insurance.
What is Commercial Auto Insurance?
Commercial auto insurance is the insurance that covers vehicles that are used for business purposes. Commeracil vehicles usually include trucks (light or heavy), tool vehicles, delivery vans, etc. If these vehicles get damaged, the commercial auto insurance protects the vehicles and handles their loss.
Importance of Commercial Auto Insurance
Commercial auto insurance is crucial to provide protection to vehicles that are used in daily business operations. Here are the reasons that indicate why this insurance is important:
1. Mandotry for Businesses
The importance of commercial auto insurance is defined in that it is mandatory for various countries and states, such as the United States, China, France, the UAE, etc. Any vehicle that is registered in the business must come under this policy.
2. Personal Auto Insurance isn’t Enough
Some people think that business vehicle coverage is included in a personal auto insurance policy, but it’s not true. A personal auto insurance policy does not cover commercial automobiles and does not protect them.
3. Provide Protection to Business, People, and Vehicles
A commercial auto insurance policy not only protects your business-related automobiles but also protects your company employees. Additionally, this policy also provides the people who are affected by your company car or vehicle, even if they are not part of your company.
Key Coverages of Commercial Auto Insurance
Commercial auto insurance covers:
1. Liability Coverage
Liability coverage, also called third-party liability coverage, protects your business if it’s involved in an accident. For example, if your company driver causes an accident that damages the other vehicle or injures a person.
2. Medical Payment Coverage
Accident benefits cover the medical bills and rehabilitation bills of the injured person who was injured by your business vehicle. This policy covers all, whether you are at fault or not.
3. Other coverages
You can add additional coverage to your commercial auto insurance policy, including increased third-party liability, collision or upset coverage, comprehensive coverage, and all or specified perils coverage.
Vehicle Types it Covers
- Cars
- Pickup trucks
- Service utility trucks
- Vans
- Specialty Vehicles
Who Needs Commercial Auto Insurance?
Let’s take a look at who needs a commercial auto insurance policy and why.
Business Owners
If you are a business owner and operate vehicles for business purposes, you need commercial auto insurance. It protects your assets in case of any accidents.
Employees
The company employees who use the vehicle for business operations come under the commercial auto insurance policy umbrella.
Family Members
In some cases, family members used the vehicles for business-related activities that may be covered by this policy.
