What Is Commercial Auto Insurance?
Commercial auto insurance is insurance that covers a company’s vehicles for use in the business. The coverage can be used for accidents that happen to the vehicle as well as for liability damage. This type of coverage may be used for hired, leased, or borrowed autos.
Coverage for liability damages
If you operate a business and use a motor vehicle, you should have a commercial auto insurance policy. This type of coverage will provide you with liability protection and other benefits, such as property damage coverage.
Liability insurance is a form of insurance that pays out to third parties when you are responsible for an accident. It can also protect your company from lawsuits. The policy may cover medical expenses for people injured in an auto accident.
Medical payments coverage is a feature that pays for a person’s medical treatment and funeral costs in a collision. These types of coverage may vary from state to state, so it’s best to check with your insurance agent before purchasing a policy.
Property damage liability coverage covers damages to other parties’ vehicles and property. This coverage is a legal requirement in most states. Some states even require a minimum level of coverage for registered vehicles.
The minimum levels for coverage in your state may vary, but you will probably want to consider getting a policy with a higher limit to ensure you’re protected against lawsuits. In addition, it’s important to remember that your personal auto insurance will not cover damages on your behalf, so it’s a good idea to have your company’s vehicle covered too.
Coverage for collision or comprehensive loss to your business autos
One of the most important tasks of any business owner is making sure that the office fleet is safe and sound. There are two main types of coverage: liability and physical damage. The most basic coverage pays for damages to the vehicle if an accident does occur. A comprehensive policy will pay for damages to your company’s property and employee injuries resulting from the same. An insurer may also require a hefty deductible. It is always best to check with your insurance provider to see what type of policy you are eligible for. After all, your insurance carrier should have your back.
A better way to learn about the coverage you need is to consult with an expert. You might be surprised to learn that your current policy doesn’t cover everything.
Coverage for hired, leased, or borrowed for business use
There are two main types of commercial auto insurance. One covers leased, hired, and borrowed vehicles, and the other covers personal autos. The latter can be purchased from an agent or an independent company.
If you lease, hire, or borrow a vehicle, you must make sure it has liability coverage. This means that it is insured for bodily injury and property damage. In addition to these, you should have medical payments coverage, uninsured motorist coverage, and comprehensive and collision.
It is important to remember that your business’s personal auto policy will not cover third-party claims if your company’s vehicle is involved in an accident. This means that if your employees drive a rented car to a sales exhibition, for example, your personal auto insurance will not protect you from any third-party claims.
To ensure that your company’s vehicles are covered, you must have a business auto policy. You can purchase one online or through an insurance agent. Commercial auto policies include bodily injury coverage, uninsured motorist coverage, property damage coverage, and medical payments.
Hired and non-owned auto coverage is a type of commercial insurance that protects your business’s assets when an employee drives a personal automobile for business purposes. While this coverage will not pay for a physical injury, it will cover liability expenses related to an accident.