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Commercial Auto Insurance

Commercial Auto Policy Coverage

Much of our future and all its events are certainly not predictable. This is exactly why business owners can benefit so greatly from a commercial auto policy. Commercial auto insurance is specifically designed for vehicles used in the operation of business. This coverage helps to protect the business owner from liability issues, not to mention costly repair bills should a commercial vehicle be damaged.

Commercial Auto Insurance allows the business owner to be fully prepared and to undertake certain measures to reduce risk that is inherent in the use of business vehicles. This kind of insurance is geared to all kinds of businesses that operate or utilize vehicles in a myriad of ways. Not only is this coverage often required by law, it is necessary so that the business owner can be helped in avoiding unnecessary legal, medical, or repair expenses. Both big and small businesses can make great use of this type of a policy.

A business auto policy is not that different from a personal policy. As in traditional car insurance, the company will need to first figure out what level of coverage they need and then purchase the policy of choice. The insurance company provides the company a contract to sign which then allows for initiation of the coverage. The policyholder then must pay the premiums regularly and on time and, when the day arrives and a claim must be filed, he or she can breathe a sigh of relief in knowing that they are protected. The insurance company contacts the insured company’s representative with instructions on how to proceed once a claim is filed and continues to help throughout the process.

There are two main types of coverage of commercial car insurance. The most common is per-vehicle insurance, which is usually obtained by small to medium sized firms. Larger companies will find it to be more cost-effective to purchase a fleet insurance policy, which is a comprehensive policy that provides coverage for all the vehicles and drivers at a company at the same time. This is different from the per-vehicle insurance policy. Per-vehicle insurance is exactly what the name suggests in that an individual policy must be obtained for each vehicle utilized in the operation of business. All of the employees that use that particular car must also be listed on the policy.

Businesses that choose the best auto insurance policies are rewarded with the best of benefits. They gain liability coverage which protects them from someone who files a lawsuit related to use of the company’s vehicles. The company will also receive payment for vehicle repair costs. (Some insurance companies prefer to pay the mechanic directly for doing the repairs.)
The kinds of coverage you will likely see in a commercial plan include the following:

Bodily Injury and Property Damage
Personal Injury and Medical Payments
Comprehensive and Collision
Uninsured / Underinsured Motorist

Commercial auto policies include coverage for commercial vehicles such as autos, trucks, cargo-haulers, tow-trucks, vans, dump trucks, to name a few. Policies can be customized to meet the specific needs of the myriad of business types that use vehicles. Commercial Auto Insurance applies to all who use their own vehicle to conduct business or who lease, rent or borrow vehicles in the course of doing business. This coverage is applicable for big fleets of vehicles and for those that traverse both on and off road environments. Call us today to see how this coverage can help your business!