Commercial auto insurance is one of the many insurances that are essential to insure your business, but it can be a bit complex to understand. A plethora of insurance policies are available for you to fulfil your needs with Insure Horizon and thoroughly protect your business against any financial liabilities. In this blog, we will walk through a guide to commercial auto insurance, outlining its coverage, exclusions, and the factors affecting its cost.
What does Commercial Auto Insurance Cover?
Commercial auto insurance is responsible for safeguarding the business against any financial loss occurring due to an accident involving your company’s vehicles. Standard insurance policies include:
- Bodily Injury Liability
- Property Damage Liability
- Medical Payments Coverage
- uninsured/Underinsured Motorist Coverage
A company can also opt for various other insurances besides commercial auto insurance, such as cyber liability insurance, to shield the business. Commercial auto insurance is designed for those businesses that incorporate heavy use of vehicles for transportation of goods and services or to travel for business meetings, for which you can opt for travel insurance for worry-free travel.
What does Commercial Auto Insurance not Cover?
Commercial auto insurance covers you for various factors to manage your financial stability. However, it is essential for you to know what is not covered under this insurance type to be sure of the extent of your protection. The things that are not covered under this insurance are:
- Cargo: If you require coverage for the goods transported in the vehicles. You will need to opt for another insurance policy that keeps check of that.
- Workers Compensation: Injuries to the employees while working using the company’s vehicles are not covered under this insurance. It is covered under worker’s compensation insurance.
- Personal Belongings: Items owned by you or your employees are not covered under the insurance.
What Types of Vehicles are Covered?
A wide range of vehicles is covered under the commercial auto insurance. This includes:
Trucks for delivery, box trucks and commercial vans.
Company cars are used for business-related operations.
Trailers attached to commercial vehicles.
Commercial motorcycles used for business operations
Who Needs Commercial Auto Insurance?
Businesses, especially those that optimise the use of vehicles for various business activities, require commercial auto insurance. These businesses include:
- Delivery services for food, courier etc.
- Sales representatives who use their own vehicle to perform tasks related to the company.
- Contractors who operate the business of transportation of equipment to job sites using vehicles.
- Service providers use vehicles to reach the location and visit clients such as plumbers, electricians and HVAC technicians.
Even if you have a small business with basic operations of transportation of goods and services using a variety of vehicles, it is ideal to insure your small business to ensure protection against financial setbacks.
Who Needs Commercial Auto Insurance?
A number of factors can impact the cost of commercial insurance:
- Type of vehicle
- Driver history
- Coverage limits
- Deductible
- Location
- Business size
Choosing the right type of insurance coverage is crucial for the financial stability of your business. Before you opt for any insurance policy, make sure to list the things that you want to cover and compare them to different types of insurance policies to match the one that will fit you the best. Consult your insurance broker to navigate through the intricate process of finding the right insurance coverage for you.
