What’s the Purpose of Commercial Auto Insurance?
Commercial auto insurance is specifically for vehicles used in the operation of a business. A personal auto insurance policy isn’t intended for business vehicles. So it’s in your best interest to get the proper coverage for any vehicles your company owns.
What is a Commercial Vehicle?
Any vehicle used for business purposes is technically a commercial vehicle. That means trucks, SUVs, cars, and vans can all be considered commercial vehicles. The important thing is that the vehicle be a vital part in the operation of your business.
Without commercial auto insurance, your business runs the risk of being sued should an accident occur. One of your vans might hit another car while out on delivery. If your company is liable for the accident, then you’ll have to pay for the damages caused by your vehicle. Insurance will help with the expense so your business doesn’t have to pay out of pocket.
A driver could have a run in with a deer or other animal. If damage occurs to the vehicle, it’ll need to be repaired as soon as possible. The insurance will help pay for the repair if you opted for collision insurance.
Some of the most popular options offered for business owners include coverage for property damage caused by your vehicle, coverage to pay for physical injuries caused by your vehicle, and coverage to repair or replace items stolen from inside of your vehicle.
Driving a business vehicle during off-hours isn’t recommended. Using a business vehicle for personal reasons could void your insurance should an accident occur.
Speak with your insurer to determine the best type of commercial auto insurance for your business. Also, inquire about discounts for having employees attend safety driving classes. You may also possibly receive a discount for installing anti-theft devices.