Commercial vehicle insurance is needed to cover the cars, trucks and vans used to run your business. Large fleets, as well as small businesses, should be properly covered by a commercial car insurance policy.
What is Commercial Auto Insurance?
Commercial vehicle insurance is a policy of physical damage and liability insurance for amounts, situations and uses not covered by a personal auto insurance policy. This type of business insurance covers many types of commercial vehicles - from commercial vehicles, including company cars, to a wide range of commercial trucks and vehicles.
Which Vehicles are Covered by Commercial Auto Insurance?
Box trucks, food trucks, work vans and utility trucks are just a few examples of larger commercial vehicles that will require a commercial car insurance policy, including coverage for employees operating the vehicle and possibly interior equipment. You may have heard of the coverage referred to as commercial car insurance, commercial car insurance, truck insurance, or fleet insurance. Although commercial vehicle insurance is most commonly associated with trucks or more known work vehicles, standard cars and automobiles may also need a commercial car policy if they are used for business purposes.
Why Do You Need Commercial Auto Insurance?
Certain types of business and vehicle use may be excluded from personal auto insurance policies. Why? Because personal auto policies were not designed for businesses - they are written and rated differently. More crucial to you— business owners or managers — businesses often need special insurance protection under a commercial car insurance policy.
Determining if your situation requires commercial auto insurance may still be challenging. Here's a little more detail and details on when you need a commercial insurance plan.
What Does Commercial Vehicle Insurance Cover?
Commercial vehicle insurance, such as your personal auto insurance policy, provides similar coverage, such as liability, collision, comprehensive, medical (or personal injury), and uninsured motor vehicle insurance. There are also distinctions between a commercial auto insurance policy and your personal auto insurance policy, which may include qualifications, definitions, coverage exclusions and limits.
What are the Coverages in Commercial Vehicle Policy?
- Bodily Injury Liability Coverage – Covers for physical injury or death resulting from an incident for which you are at fault and, in most situations, offers you legal protection.
- Property Damage Liability Coverage – Provides you with coverage if your car inadvertently damages the property of another person and provides you with legal protection in most situations.
- Combined Single Limit (CSL) – Liability plans typically offer separate limitations that relate to claims of bodily injury and property damage. A cumulative single limit plan shall have the same dollar amount of coverage per covered incident, whether physical injury or property damage, to one or more individuals.
- Medical Non-fault or Personal Injury Coverage – Usually pays for medical expenses incurred by the driver and passengers in your car as a result of a covered accident, regardless of their fault.
- Uninsured Motorist Coverage – Covers for your injuries and, in some cases, any property damage incurred by an uninsured driver or a hit-and-run driver. In some cases, under-insured motorists for drivers is also included. It applies in situations in which the at-fault driver has insufficient insurance.
- Comprehensive Physical Damage Coverage – Covers for damage to your car due to theft, arson, flooding, fire, and other hazards.
- Collision Insurance – Accounts for damage to your car when another object strikes or damages it.
Who is Covered to Drive?
Your commercial auto policy may include employees, family members, and others as drivers. If someone drives the vehicle more than on an emergency basis, you should add it to your policy as a driver.