Commercial Auto Insurance: What Business Owners Need to Know Before an Accident Happens

If a business uses vehicles in its daily operations, whether for agent meetings, deliveries, pickups or other processes, commercial auto insurance is a necessity. While most people know that they’re legally required to purchase liability coverage, that’s seldom enough protection for a business. An insurance agent can explain Commercial Auto Insurance: What Business Owners Need to Know Before an Accident Happens. Below are several coverage types to consider.

Bodily Injury Liability

In the event of an accident involving a commercial vehicle, the driver or the company may be held responsible for drivers’ and passengers’ injuries. When these accidents happen, bodily injury liability insurance provides coverage. It’s a common type of policy to have, and most businesses need it.

Property Damage Coverage

If a commercial vehicle is in an accident where another person’s property is lost or damaged, and the company or driver is found liable, this type of coverage is enforced. It’s another common type of coverage, and it’s required in many areas.

Collision Insurance

Collision coverage is a factor when a commercial vehicle strikes or is hit by another vehicle. Damage from these collisions can be significant, and in many cases, they are not covered by other property damage insurance policies.

Comprehensive Insurance

This term is commonly used in the insurance industry. This coverage applies to a vehicle, not to damages done to another person’s property, and it provides coverage in cases arising from things other than auto accidents. For instance, if vandalism leaves a commercial vehicle unusable, comprehensive insurance pays for the repairs.

Under- and Uninsured Motorist Coverage

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This kind of policy offers protection for commercial vehicles when an at-fault driver has little or no insurance. Here, the owner’s insurance policy will cover the cost of replacement or repair.

Medical Payment Coverage

When a person is hurt in an auto accident, injuries can be severe and medical bills can be quite high. This kind of insurance policy covers expenses that drivers and passengers have because of a covered incident.

Commercial auto insurance is an important way to minimize the risks of operating a business. Every time an employee uses a company vehicle, regardless of where they’re going or how safely they drive, the business is at risk. However, with proper coverage, such risks can be minimized.