COMMERCIAL AUTO Insurance Policy
Anyone who operates a business, regardless of size, and uses motor vehicles, including trucks, vans and cars, in the operation of that business, should invest in Commercial Vehicle Insurance. A commercial auto insurance policy protects the business owner from liability when employees are using a motor vehicle owned by the business. If any physical damage or bodily harm occurs to an employee or someone else due to an accident, insurance helps cover those expenses.
An insurance policy that is issued for personal use of an automobile or other motor vehicle does not cover business usage of that vehicle. An accident involving a business vehicle could leave a business owner or employee at financial risk if an accident involving a vehicle causes any degree of bodily harm or property damage. Commercial vehicle insurance is designed to provide a variety of coverage options for the business in the same way that personal automobile insurance provides coverage for a single driver.
When purchasing commercial auto insurance for any vehicles in a business fleet, business owners have several coverage options, depending upon how extensively they want to be protected:
- Commercial insurance can cover bodily injury liability that pays for injury or even death resulting from an accident caused by a company vehicle.
- Property damage liability coverage protects the business owner if one of the vehicles causes damage to another person's property.
- Medical payments/no fault coverage covers medical expenses incurred to treat the driver and passengers following an accident, regardless of who was at fault.
- Uninsured motorist coverage is important because it covers the cost of bodily injury and property damage in the event the other driver is uninsured. Uninsured motorist coverage also offers protection in the event of a hit and run accident involving a business-owned vehicle.
- Comprehensive physical damage coverage pays for repair costs connected to theft or damage other than an accident. It also covers damages incurred by natural disasters such as fire and flood or vandalism.
- Collision coverage pays for any damage to a company vehicle struck by another object, such as falling trees or poles.