What Is Covered in Commercial Auto Insurance?

Commercial auto insurance is designed to provide companies with financial protection in case a vehicle is involved in a collision or other accident. Understanding what is covered under a policy is crucial to protecting your business assets and minimizing financial risks. We’re here to offer a clear and comprehensive overview of commercial auto insurance, highlighting the essential areas of coverage and considerations.

What Does Commercial Auto Insurance Cover?

First and foremost, commercial auto insurance covers claims for vehicles meant for business use on public roads. The primary coverage includes liability insurance, which protects your business from financial loss if an employee is responsible for an accident. This encompasses both bodily injury and property damage.

Additionally, policyholders can opt for collision and comprehensive coverage, which pays for damages to their vehicles from accidents, theft, or natural disasters. Other options may include personal injury protection, medical payments coverage, and uninsured motorist protection. These additional layers help ensure that both your employees and vehicles are well-protected in various scenarios. Be sure to research your state’s requirements for additional coverage to a commercial auto policy.

What Vehicles Are Covered?

A commercial auto policy can insure two main types of vehicles. The first type is owned, leased, or hired by the business itself. Company-owned vehicles include delivery trucks, vans, trailers, and cars used exclusively for business operations.

Work vehicle insurance can also extend coverage to personal vehicles when they are being used for business tasks, such as making deliveries or attending client meetings. It’s important to disclose these details to your insurer to ensure all permissible drivers and relevant vehicles are adequately covered under your policy.

What Is Not Covered?

While commercial auto insurance offers extensive coverage, it doesn’t cover everything. Notably, it doesn’t extend coverage to incidents when a vehicle is used for purposes outside of the outlined business operations. The policy also doesn’t typically include damage from employee negligence or maintenance-related issues. Lastly, your policy will likely not automatically cover damage to vehicles rented in the business’s name, but this coverage can be added to your policy for an additional cost.

A thorough understanding of commercial auto insurance is essential for safeguarding your business assets. Ensure your policies cover all necessary areas and vehicles by consulting a reputable provider. For more personalized assistance, reach out to Serenity Group to find the best deal on a commercial auto insurance policy tailored to your business’s needs.