Commercial Auto Insurance

Commercial auto insurance is a specific type of insurance designed to protect businesses that use vehicles for their operations. It's distinct from personal auto insurance, which is intended for individual drivers using their cars for personal purposes. Here's a breakdown of what commercial auto insurance covers and why it's important for businesses:

What does commercial auto insurance cover?

• Liability coverage: This protects your business if you or an employee causes an accident while driving a company vehicle, covering medical expenses and property damage to others.
• Collision coverage: This pays to repair or replace your company vehicle if it's damaged in an accident, regardless of who is at fault.
• Comprehensive coverage: This covers damage to your company vehicle from events other than collisions, such as theft, vandalism, or weather.
• Medical payments coverage: This pays for medical expenses for the driver and passengers of your company vehicle, regardless of who is at fault in an accident.v
• Uninsured/Underinsured motorist coverage: This protects your business if you are hit by a driver who does not have insurance or does not have enough insurance to cover the damages.

Additional Options:

• Hired and Non-Owned Auto: Typically covers liability only coverage arising from rented, leased, or employee-owned vehicles used for business purposes.

Why is commercial auto insurance important?

• Protects your business from financial losses: If you or an employee causes an accident, the costs associated with injuries, property damage, and legal fees can be significant. Commercial auto insurance can help cover these costs and prevent your business from facing financial hardship.
• Complies with the law: In most states, it is illegal to operate a business vehicle without commercial auto insurance.
• Provides peace of mind: Knowing that your business is protected in case of an accident can give you peace of mind and allow you to focus on running your business.

Remember, even if you only use your personal vehicle for occasional business errands, you may need a business use endorsement on your personal auto insurance policy.