Do you own a business that uses vehicles to complete work activities? If so, you should have commercial auto insurance coverage for your vehicles. Commercial auto insurance offers coverage of traditional car insurance plus some options specific to business operations.
Commercial auto insurance is required when a company uses vehicles as part of the business. For example, a flower delivery company would need coverage for the delivery vehicles. Cars, trucks, vans, or other motorized vehicles are considered business vehicles if they are used as part of the business. Auto insurance is sufficient for personal cars. But it is not designed to protect against specific situations common for business owners.
If your vehicle is for business purposes then you will need a higher liability amount. Businesses run a greater risk of being sued over liability issues. If the vehicle is used to carry and transport heavy equipment, then you will need sufficient coverage against wear and tear. And if you depend on the vehicle for your income, then having it insured means you will get help if it is stolen or breaks down. Commercial insurance pays for repairs to damaged vehicles following accidents and offers liability coverage if the employee or driver is involved in a business-based car accident.
In addition to basic coverage, you can modify a plan to suit your needs. Basic coverage includes:
1. Injury and property damage liability. This provides litigation for bodily injury while property damage liability protects the company against litigation for damaged property.
2. Collision pays to have a vehicle repaired or replaced following a collision.
3. Comprehensive pays for damage done to a vehicle because of non-accident reasons.
4. Medical payments pay medical fees for individuals involved in an accident.
5. Personal injury is for medical bills and lost wages.
6. Uninsured motorists are for claims if the other driver does not have insurance.
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