Does Your Business Need Commercial Auto Insurance?

Commercial Auto Insurance

Commercial auto liability insurance is mandatory in all U.S. states. Getting the right amount of liability protection in place will help you to protect your assets in the event of an accident. It is essential to know that your personal auto insurance won't cover your vehicles for business use. So, whether your business has one vehicle or a fleet of buses, vans, or dump trucks, be sure to get adequate commercial auto liability coverage. Your business is liable for accidents that you or your employees may cause; liability insurance will protect your company from a resulting liability claim or lawsuit.

Do you operate a business that requires you to have a vehicle to deliver your goods and services to your clients? Do you have a fleet of delivery trucks that are on the road 24/7? Small firms that own or operate vehicles have the same risks as large firms. You are at risk of losses arising out of accidents that can damage your vehicles and cause injury to third parties and employees.

Not all insurance companies offer commercial vehicle insurance. Some companies that specialize in auto coverage have a separate division that handles heavy vehicle insurance underwriting. Often, you can consult with your agent who can inform you of their coverage availability, or refer you to another insurer who may be able to handle your commercial needs.

Some of the requirements for getting coverage on these larger vehicles can include specialized driver training requirements as defined by the state of California. Often drivers must have a special endorsement or license to drive such vehicles. Regular inspections are usually mandatory for such vehicles as well, to help maintain safety on the road. It is not uncommon to see random inspection points set up across the state to do spot checks of commercial trucks and other vehicles.

Commercial Auto Insurance can provide your firm with security and protection from devastating liability claims arising from an accident involving your vehicle. Commercial Auto Insurance is usually offered on vehicles owned by a business and can include:

• Bodily Injury Liability – Coverage for damages that involve bodily injury to third parties for which you become legally liable under the law.
• Property Damage Liability – Coverage for damage to the property of others.
• Medical Payments – Coverage for reasonable and necessary medical expenses for those who are accidentally injured while in your automobile or while getting in or out of your automobile.
• Personal Injury Protection – Coverage for medical, hospital, rehabilitation, loss of wages, or loss of services costs resulting from injury to you or any guest injured while in the vehicle.
• Comprehensive – Protection for the loss of, or damage to, your vehicle and its equipment from all causes except collision, subject to the terms and conditions on the policy.
• Collision – Protection for the collision damage to your automobile and its equipment, subject to the terms and conditions of the policy.
• Uninsured Motorist – Coverage allows you to recover bodily injury damages due to an accident where the other party does not have insurance and is legally liable.
• Underinsured Motorist – Coverage will enable you to recover bodily injury damages due to an accident where the other party is found legally liable and does not have adequate liability limits.

·         Hired Auto Liability Coverage - Covers liability for automobiles hired under contract on behalf of, or loaned to, the named insured.

How To Lower Your Commercial Auto Expenses

Make sure you train all drivers on the latest safe driving techniques. In addition, have our agency market your insurance to find the best possible combination of coverage, price, and service.

It is a good idea to shop around for a service repair shop that can provide competitive pricing but is also responsible. Cheap repairs do not help if the vehicle ends up back in the shop, or the shop does not meet repair deadlines.

Some vehicles are cost more to repair. Additionally, technology in newer vehicles is more costly to repair. For that reason, one of our clients opts to purchase three to five-year-old vehicles to save on repair costs.