What Does Commercial Auto Insurance Cover?
Commercial auto insurance is similar to personal auto insurance in basic coverage, such as liability, comprehensive, collision and other types of coverage that are specific to business vehicle use. A commercial auto policy is designed to protect your business from significant losses that could affect your company’s financial well being.
Commercial auto insurance policies combine several different types of coverage – some are required and some are optional. A typical policy includes some combination of the following:
Types of Vehicles Commercial Auto Insurance Covers
Commercial automobile insurance is a broad term that refers to most commercial business automobiles, including but not limited to:
Commercial auto policies cover personal cars that are used for business, as well as SUVs, light duty trucks, buses, limousines, taxicabs, vans and other delivery vehicles used solely for business purposes.
Use of these automobiles is associated with a range of risk factors, including how you use them, how often, and how many miles they travel each year, among other factors. Insurance companies review these risk factors along with any efforts your company may make to improve driver safety, when they assess the amount of coverage your business needs.
If you are looking for coverage information on large trucks and heavy equipment used for business purposes, refer to the commercial truck insurance section.
Does Commercial Auto Insurance Cover Personal Use?
Small business owners and entrepreneurs often use their own cars while on the job without a second thought. However, it is important to know that your personal insurance may not cover commercial use of your auto.
It’s very common for a small business owner to send an employee out on an errand, whether to get supplies from the local store or to give a business consultant a ride from the airport.
If the staff member gets behind the wheel of his own car, and the business owner does not have a commercial auto insurance policy in place that covers that worker and his car, any injuries or damage that result from an accident may not be covered.
Regardless of how much or how little you and your employees use personal vehicles in the course of doing business, getting adequate coverage in place can prevent a financially damaging event from putting your business at risk.
We’ll ask a variety of questions designed to not only get you an accurate quote, but also find discounts that may be available to you.
You may be asked questions such as:
- How many commercial automobiles do you have?
- How are those vehicles used? For example, do they transport people, goods, hazardous materials, or food?
- How many miles does each vehicle typically travel in a year?
- How many drivers do you have?
- What are their ages and level of experience?
- Have your drivers taken a safe driving course?