What is Commercial Auto Insurance?
If your business uses vehicles for business purposes, then you need a commercial auto insurance policy. This coverage keeps your business in compliance with local insurance laws. Although you are running a business, all motorists are financially responsible for damages they cause behind the wheel. That means your business is responsible for any damage caused by any of your vehicles.
Most states require nothing more than liability coverage, which means your business will pay if you or your employees cause an accident. But legal requirements vary, so you need to understand exactly what type of coverage you need for your business.
Liability isn’t the only type of commercial auto insurance available. But what’s available to you might depend on your type of business and the vehicles used. You might need collision or comprehensive auto coverage that pays for damages to your business vehicles.
You may also want personal injury and personal property coverage. You’ll want to determine what type of coverage is best based on your needs. For instance, how many employees will have access to business vehicles? How often will the vehicles be on the road and for how long? Several things will determine the best option for your business.
It’s often possible to get blanket coverage on a fleet of commercial vehicles. You might find that this is more affordable. But if you choose this coverage, make sure you understand how the deductible works. For the best guidance, speak with an official insurance agent for help.