Introduction to Commercial Insurance
What is commercial auto insurance?
Commercial automobile insurance is for companies who need coverage for their business vehicles. It pays for accidents that happen while making deliveries, running errands or carrying supplies. This coverage applies to both cars as well as vans, trucks and semis.
Who it is for?
You need commercial vehicle insurance if you intend to use it all day for your business. If your company versus you owns your car, you also need commercial insurance for it. Any use of a dump truck, tow truck, oversized trailer or other equipment also might require a business auto policy.
How Commercial Automobile Insurance Works
When you or one of your drivers is at fault in an accident, you will file a claim using similar steps as you would for personal insurance. Your company will review your policy and pay compensation for medical treatment and property and equipment damage.
When filing a claim, you probably will have to offer a written statement and may have to find ways to prove it happened while on company time. Photos of the accident scene and timeclock records would prove when and where the incident happened.
Types of Commercial Vehicle Coverage
Types of coverage for commercial cars, trucks, trailers and more include liability insurance, which covers another driver’s repair costs. You will need additional coverage that will pay for bodily injury and property damage or your vehicle repairs.
Comprehensive, uninsured motorist and additional medical and personal injury protection also covers scenarios that could cost you money. Having all types of commercial insurance may not be required, but it can prevent you from losing all your assets.
Your commercial auto insurance policy typically pays for damages costing several hundred thousand dollars or more. Catering equipment, hydraulic lifts and employee medical bills are more instances typically covered by auto insurance policies.