Whether grabbing doughnuts for your team in the morning or hauling tools to a job site, you likely need commercial auto insurance. Unlike personal car insurance, business policies offer higher liability coverage to protect your firm.
Typically, these policies include coverage for hired and non-owned vehicles and roadside assistance coverage. Read on to learn more about the benefits of commercial auto insurance.
Coverage for Employees
Many business owners rely on their employees to perform essential tasks, including driving company vehicles. Commercial auto insurance provides several critical benefits for businesses and their employees.
If a car accident occurs, personal auto insurance covers medical expenses and property damage, no matter who is at fault for the collision. It also offers coverage for the tools and equipment in the vehicle at the time of the accident (such as catering equipment or hydraulic lifts), which personal auto insurance typically excludes.
Typically, employees are listed as additional insureds on a commercial auto policy. Additionally, policies can include hired and non-owned auto insurance, which extends liability protection to employees who drive personal cars or trucks that are rented or borrowed for work purposes. In addition, some policies offer lease gap insurance and comprehensive coverage, which protect leased or financed cars. These are essential benefits for any business.
Coverage for Vehicles
Business auto insurance provides liability and physical damage coverage for cars, trucks, and vans owned by the business or used while doing business. Typically, it will also include personal vehicles driven for business purposes if they meet specific criteria outlined by the policy. Some commercial policies offer coverage for non-owned and hired automobiles as well.
Depending on the type of vehicle, driver history, and other variables, the costs for this policy can vary significantly. An experienced insurance professional can help determine what types of coverage are necessary for your business. They can also help you find an affordable premium.
If you have a fleet of company vehicles, many insurers can provide bulk policies to make filing claims easier. Having your business vehicles covered under one policy can also reduce paperwork and ensure that all vehicles are insured simultaneously. Some policies also allow you to include a deductible to help keep your rates lower.
Coverage for Damages
You may want commercial auto insurance if your business relies on company-owned vehicles or if employees drive their cars for work. The benefits of commercial auto include bodily injury liability coverage, property damage liability coverage, and medical payments coverage. You can also get add-ons like lease gap insurance to help replace your vehicle if it’s totaled and drive other car coverage to protect you if employees use their cars on company business.
You’ll need a different type of policy if your business depends on ride-sharing services, such as Uber or Lyft, or if you haul tools and equipment in the back of a pickup truck. Your insurance agent can help you determine if commercial auto suits your business needs.
Coverage for Uninsured Drivers
If you hire people who are not insured to drive your company vehicles, you can protect yourself with commercial auto insurance. Unlike personal policies, businesses offer higher policy limits and more comprehensive coverage.
For small businesses, especially those who use their vehicles for ride-sharing services like Uber or Lyft, having commercial car insurance is essential. These policies help protect you from a lawsuit against your business, even if an uninsured driver causes an accident, which is usually the covergae you´re looking for after a hit and run accident.
Generally, commercial car insurance offers the same coverage as standard auto insurance for business owners, including liability coverage and physical damage coverage. However, pricing can vary based on the type of vehicle, driving history, and how the car will be used. It is important to compare multiple quotes before making a decision. That way, you can find the best option for your needs and budget.