What is commercial automobile insurance?
Commercial automobile insurance is purchased to cover claims of injury and damage that your business vehicles cause in an accident.
As you can see, this is crucial insurance coverage that businesses seek to get thorough cover from sudden costs emerging out of accidents involving their vehicles.
However, a lot of business owners not educated in the complex terminology of insurance confuse it with personal auto insurance, which results in further complications when an accident occurs and the business faces a third-party injury claim.
Read more about what is covered in a comprehensive commercial automobile insurance policy.
WHO NEEDS A COMMERCIAL AUTOMOBILE INSURANCE POLICY?
A lot of businesses have a lot of usage for various types of vehicles, and this radically increases the risks of their facing several damages or injury claims every year. The costs involved in this kind of litigation and lawsuit settlements can be tremendously high.
As a result, getting a commercial automobile insurance policy with comprehensive coverage for all vehicles used by your business is a practical solution that can take away the headache of paying copious sums to third parties after every accident.
As such, the following types of businesses often seek thorough business vehicle insurance for their operating assets:
- Transportation services companies
- Freight forwarding companies
- Logistics and hauling services providers
- Trucking companies
- Taxi companies
- Ride-sharing services companies
At the same time, any business that has vehicles listed in its assets should get proper commercial automobile liability coverage from a reliable insurance provider. Apart from these business with ownership of vehicles, others that let, hire, or borrow automobiles of any kind should also get commercial automobile insurance.
Here are some of the situations where having proper business automobile insurance can immensely help you with its coverage:
- You, or somebody else, uses an automobile owned by your business to transport people, deliver goods, or reach business meetings.
- Your employees use business automobiles to complete business-related tasks.
- You rent your automobiles to others.
- You own an automobile with permanently fixed equipment, including ladders or toolboxes
- Your type of business is legally bound to get proper automobile insurance for any vehicular assets owned by the business.
What Does Commercial Automobile Insurance Coverage Include?
Most states in the US have made it mandatory for business that frequently use automobiles to get proper commercial automobile insurance coverage before they are open for business. It is expected that such a business would at least get a good limit for liability coverage.As the business grows and continues to add new vehicles in the fleet, all new automobiles must be included in the policy before they become operational.
As business automobile insurance has become such a common utility in business processes across the nation, the coverage most insurance carriers provide for it is also quite extensive, covering a policy holder for many first- and third-party covers.
COVER PROVIDED IN COMMERCIAL AUTOMOBILE INSURANCE
While automobile insurance coverage offered by many of our partner carriers includes a long list of covers and risks, the following covers are provided by all of them in their standard business auto insurance policies.
- GENERAL LIABILITY COVERAGE: This is the most basic type of coverage that anybody with an automobile insurance policy would have. Applied to third-party damages and harm, this aspect of your policy will provide coverage for repair costs to the other vehicle(s) and third-party injury treatment costs. This area of your policy will also cover any costs and expenses incurred as legal fees defending you – or the driver driving your vehicle –if the third party involved was not at fault.
- MEDICAL PAYMENTS COVERAGE: Your commercial auto insurance policy will also cover medical treatment costs for you – or your driver – and passengers in vehicles regardless of the party at fault.
- HIRED AUTOMOBILE DAMAGE COVERAGE: When it comes to third-party automobile damages cover in your policy, you can rest assured that it will provide coverage for repair costs for both parties if the vehicles are rented.
- REPAIR COSTS COVERAGE: You can also count on getting full cover for repair costs to your vehicle if the damages endured by it were caused in a collision.
- ROADSIDE ASSISTANCE COVERAGE: You might face a situation where your vehicle is damaged and cannot be driven away. In such cases, your insurance carrier will also provide you comprehensive coverage for all expenses incurred in ensuring roadside assistance for your vehicle after the accident.
Request a quote for commercial automobile insurance from Ficke Insurance now.