Commercial auto insurance is coverage for vehicles that are used for business purposes. This coverage is separate from regular automobile insurance. If your business uses vehicles, than you must have this type of business coverage.
Even if it’s a personal vehicle that’s used for business purposes, you still need commercial coverage. Any vehicle used for purposes such as meetings or transporting supplies should be included on the policy. This is because business vehicles open the company up to greater liability, and its risky to not have insurance.
Commercial coverage works much like a personal auto policy. It includes liability, collision and comprehensive coverage. Liability pays legal fees, property damage, medical bills and other damages if you are at fault. Comprehensive and collision insurance covers damages caused by collisions with objects, theft, and other damages.
If an underinsured driver hits you, then your policy will help pay your expenses. And if you have a passenger who is injured, the coverage takes care of the passenger’s medical bills no matter whose fault it was. The policy is set up to ensure that your business assets are safe.
There are additional types of protections you can add to your policy. Hired auto coverage protects you from liability if you borrow or rent a vehicle, or hire a car and driver. And an employer’s non-ownership policy insures your employees while driving their personal vehicles for business purposes.
Any vehicle you use for business purposes must have commercial auto insurance. Failing to have coverage could cost you your business should an accident occur.