No two business are one in the same and neither are their reasons for needing insurance. This is why commercial insurance providers have made sure commercial auto insurance is available in a wide range of different options to accommodate all needs. Whether you are just starting a business or just adding a commercial vehicle to your business, the more you know about commercial auto insurance the easier it will be to get what you need.
Commercial Auto Insurance and Personal: What is the Difference
Before you look at the details involved in a commercial automobile insurance policy, it helps to have an idea of what situations require what type of insurance. You will notice there are a lot of similarities between the two, but should always remember they are not the same thing. Situations that merit needing commercial auto insurance include:
- When vehicles are owned by you instead of your employees
- When your business owns a fleet of vehicle
- When your vehicle is commonly used by employees for business needs
Situations where personal automobile insurance is all you need include:
- When your business vehicle is only used for work
- When only the business owner drives the vehicle for business purposes
These situations should give you a general idea of how to figure out what policy you need, but it is still a good idea to take a deeper look at commercial automobile insurance policies to understand what they offer.
Understanding the Basics of Commercial Automobile Insurance
The biggest question a business owner has when it comes to business insurance for the their fleet is: what exactly is covered by the insurance? Fortunately, what is covered is not that different from personal automobile insurance. Typical coverage options for commercial auto insurance include:
- Body Injury Liability
- Collision Coverage
- Property Damage Coverage
- Medical Payments Coverage
- Uninsured and Underinsured Driver Coverage
- Comprehensive Coverage
You need to think about how often your business vehicles are used and the driving records of your employees when deciding what kind of commercial automobile insurance you really need.
Company Vehicles is an Investment You Need to Protect
Having a company vehicle is a huge investment. Regardless of how big or small the business is, you are financially responsible for repairing and replacing the company vehicle if anything happens to it. You are also financially responsible for any damage the vehicle causes. Having automobile insurance on the vehicle is about protecting yourself and your business from a huge financial loss.