Commercial Auto Insurance covers a vehicle or fleet of vehicles for physical damage and liability for amounts, situations, and usage that is not covered by a personal auto policy.
This type of business insurance can cover a variety of vehicles and is sometimes also referred to as commercial car insurance, truck insurance, or fleet insurance. Our agents, at Insurors Associates Southeast will help you find the appropriate coverage needed for your business.
Why Commercial Auto Insurance may be required?
- If a vehicle is used in tasks related to the operator’s occupation, profession or business, other than commuting, a commercial policy is typically necessary and recommended.
- If you are using your vehicle to transport goods or people for compensation or if you use your vehicle to conduct a service, you probably need a commercial auto insurance policy.
- A commercial auto policy will be necessary if you need higher limits of liability because of the nature of the work you do.
- If you are hauling a considerable weight in tools or equipment, or if you are towing a trailer used to conduct business, a commercial auto insurance policy may be required.
- If employees operate the vehicle or if ownership is in the name of a corporation or partnership, a commercial auto insurance policy may be required.
What coverage is provided by Commercial Auto Insurance?
Commercial auto insurance policies, much like your personal auto policy, provides coverages such as liability, collision, comprehensive, medical payments (or personal injury protection) and uninsured motorists coverage.
However, there are also a number of differences between a commercial auto insurance policy and your personal auto policy. These may include definitions, eligibility, exclusions, coverages and limits. As well, most Commercial Auto policies are considered “named driver only” policies. This means that only those drivers listed on the policy can operate a covered vehicle.
What are Commercial Auto Policy coverages?
- Bodily injury liability coverage – This coverage pays for bodily injury or death resulting from an accident for which you are at fault. It also provides you with a legal defense.
- Property damage liability coverage – This coverage provides you with protection if your car accidentally damages another person’s property. It also provides you with a legal defense.
- Combined single limit (CSL) – A combined single limits policy has the same dollar amount of coverage per covered occurrence whether it’s related to bodily injury or property damage, one person or several. Liability policies typically offer separate limits that apply to bodily injury claims for property damage.
- Medical payments, no-fault or Personal Injury Coverage – This coverage usually pays for the medical expenses the driver and passengers in your car incurred as a result of a covered accident regardless of the party at fault.
- Uninsured motorist coverage – This coverage pays for your injuries and, in some circumstances, certain property damage caused by an uninsured driver or a hit-and-run driver. In some cases, underinsured motorist coverage is also included. This is for cases in which the at-fault driver has insufficient insurance.
- Comprehensive physical damage coverage – This coverage pays for damage repairs to or replacement of your car from theft, vandalism, flood, fire, and other covered perils.
- Collision coverage – This coverage pays for damages to your car when it gets hit or is hit by another object.