Protects the insured from injury and property damage losses while driving company vehicles or during the course of the company’s operations.
Commercial Auto insurance provides liability and physical damage protection for vehicles that are used primarily for business purposes. They differ from Personal Auto insurance policies in the higher limits they provide and the optional coverages they offer. Commercial Auto policies are not just for large vehicles like semi or dump trucks; the use of the vehicle matters more than the size. If a vehicle is used primarily for business or is owned by the company, it must be covered by a Commercial Auto policy.
Commercial Auto insurance policies can range in scope from broad to narrow coverage depending on the choices of the insured. One of the options available to the insured is which vehicles they would like covered under the policy. Do they want strictly the vehicles the company owns covered or would they like all autos used for the business, including employee autos and hired autos, covered?
Keep in mind, we’re not simply talking about the vehicle itself and the cost to repair it if damaged, Commercial Auto policies provide liability coverage for bodily injury & property damage. If an employee is driving his/her vehicle to run a company errand and is involved in an accident, the company could be held liable for injury and/or property damage.
Car accidents are one of the most common causes of personal injury for all ages and the leading cause of death for individuals under 34. Chances are you may never file a claim on your Liability insurance policy, and maybe even on your Work Comp policy. But the chances that you may be involved in a car accident are pretty high and with the average cost of a car accident costing about $21,000 and the average hospital stay costing over $10,000, it is important that your company obtains the proper coverage.
How Much Does It Cost?
Commercial Auto insurance is the most complex in regard to how the pricing is determined. However, the one that can have the greatest effect on how much you’re paying is the driving history of the employees. Below are a few of the factors that influence price.
- Number & Value of Vehicles
- Number & History of Drivers
- Coverage Desired
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What is Commercial Auto Insurance?
Commercial Auto insurance provides liability and physical damage protection for vehicles that used primarily for business purposes or are owned by a business. It differs from Personal Auto insurance in that a commercial auto policy can provide higher limits of liability, offer Additional Insured endorsements, and extend vehicle coverage beyond simply the autos the company owns. It can also provide towing and rental reimbursement as well.
Why do I need it?
If you’re using your vehicle primarily for business, if it is registered or owned to the company, or if there is permanently attached equipment like racks or toolboxes attached to it, then your Personal Auto policy will not cover a claim. Furthermore, most construction contracts require a Certificate of Insurance showing Commercial Auto as an active line of insurance. But most of all, you need it because the average person will be involved in 3 to 4 accidents in their life, and proper coverage will ensure you and your business are protected.
What does it cover?
Commercial Auto insurance covers liability & property damage claims concerning the ownership and operation of vehicles used by businesses. For example, if you or your employee is at fault for an accident, the policy will cover the medical costs for any drivers or passengers of the other vehicles involved. It will also cover the cost to repair the other driver’s vehicle and possibly the company vehicle as well.
What is NOT covered?
Commercial Auto insurance does not cover the bodily injury expenses of the driver or employees of the company. It does not cover your tools and property if they are stolen from the vehicle. The only exception is if the piece of equipment is permanently attached to the vehicle and it is disclosed on the policy. It also will not cover building material that is damaged during an accident or stolen from a vehicle.
How fast can I get it and what do you need from me?
Most Commercial Auto policies can be quoted and issued the same-day. Factors that might extend the process would be a large number of vehicles and drivers, poor driving records, and/or significant accident and claim history. Necessary information required to provide a quote is:
- Company Info (name, address, phone #, email)
- VIN #’s of all vehicles
- Driver License #’s and Date of Births for all potential drivers
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