Commercial auto insurance policy can give your business clients coverage for their fleet of vehicles and drivers against injury, loss or damage to vehicles or cargo, in addition to damage to other property. In general, the coverage provides convenient, unified billing, and a whole lot of optional coverage to meet your client’s expectations and vehicle characteristics.
What Businesses Need Commercial Auto Insurance?
Commercial auto insurance can turn out to be extremely beneficial for owners of small-or-medium sized businesses as it provides coverage on the firm's vehicles, not just on one but an entire fleet. In addition, it protects the business against potentially devastating liability costs arising from an accident involving their vehicles.
Commercial Auto Insurance Policy Components:
Commercial auto insurance policy can sometimes be treated as a six-in-one policy with six important components in one package. These are Comprehensive, Crash protection, physical injury coverage, physical injury protection, underinsured motorist, and uninsured motorist. Some of the above list are mandatory because of the state law, depending where you sell auto insurance.
Other Key Mechanisms
- Ideally the legal owner of vehicles should be the principal insured.
- You can protect a fleet by adding overnight premises exposure coverage. This can be added on to existing property insurance.
- Take references from local business firms on the credibility of the business auto insurance provider.
Commercial auto insurance can provide coverage for a wide variety of vehicles such as delivery vans, refrigerated vehicles, tractor-trailers, utility trucks and private passenger vehicles used in many types of businesses, including florists, contractors, real estate, retail, wholesale, farming and more.
Business Auto Insurance Coverage Options
- Liability
- Medical Payments Coverage for injured parties
- Personal Injury Protection
- Comprehensive
- Collision
- Emergency Road Service
- Car Rental and Travel Expenses
- Uninsured Motor Vehicle
- Underinsured Motor Vehicle
- Death, Dismemberment & Loss of Sight
- Loss of Earnings
Bodily Injury (BI) portion of commercial auto liability insurance will pay for the related expenses. Bodily Injury (BI) will cover hospital and medical bills, rehabilitation, long-term nursing care, funeral expenses, lost earnings, pain and suffering, and other expenses, up to the limits you select.
Property Damage (PD) portion of commercial auto liability insurance will pay for the related expenses. Property Damage (PD) will cover the expense to repair or replace damaged items, including other vehicles, lamp posts, houses or even a pet, up to the limits you select.
