Commercial Automobile Insurance

Commercial Automobile Insurance

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Commercial auto insurance is a specific type of business insurance policy. It covers physical damage and liability coverage that applies to vehicles owned by or used in your business. The policy protects you and your business against liability for damages caused by accidents involving your business vehicles and provides certain compensation to occupants of your commercial vehicles injured in accidents that are not covered by a personal auto insurance policy.

Commercial vehicle insurance covers a variety of commercial vehicles including automobiles used for business purposes such as company cars, commercial trucks and other vehicles such as box and food trucks, work utility vans and trucks.

You may think that your business insurance will cover your vehicles, but in many cases, that is not the truth. There is a difference between business insurance and commercial auto policies. The difference involves how work-related vehicles are used. Business auto insurance covers vehicles used in ordinary travel such as running errands around town. Commercial auto insurance covers specialized vehicles designed for specific jobs and covers a wider range of perils and situations.

What is Included in Commercial Auto Insurance Cover?

Commercial auto insurance typically provides coverage for all the vehicles in your fleet. Whether they are vehicles that you own, lease, hire or use in your business, commercial insurance is necessary to protect you in case of an accident. Commercial auto often offers liability coverage for bodily injury and property damage caused to others by your use of the insured business vehicles.

The two types of physical damage coverage for your insured vehicles:

  • Collision loss: damage from auto accidents.
  • Comprehensive loss: damage not related to auto accidents such as weather events, theft and other non-collision causes.

It also includes two types of liability coverage:

  • Bodily injury coverage: for medical bills from accident-related injuries to others when you’re at fault.
  • Property damage coverage: from accident-related damage to someone else’s property, such as a car or house, when you’re the one at fault.

How to Know if You Need Commercial Automobile Insurance

If your business owns, leases, hires or uses vehicles, you should carry liability coverage. In addition to being a smart business move, there are some laws that require this type of insurance. Federal laws require this type of coverage if you move goods or people across state lines. If you deal in  larger commercial vehicles, you may need an additional commercial truck insurance policy.

So what constitutes the need for commercial auto insurance? If your business uses vehicles that :

  • Are used for any type of business.
  • Carry a commercial license plate or tag.
  • Are registered as commercial vehicles in your state.

There are other criteria that may necessitate your need for commercial automobile coverage.  If you or your employees use business vehicles for work-related tasks, such as:

  • Driving clients to or from the airport;
  • Going on sales calls or to meetings;
  • Taking packages to a shipper or picking-up product;
  • Shopping for office supplies and other work related items.

While commercial automobile insurance covers you in most business situations, there are some services and activities that are not covered and do require additional coverage. These activities include:

  • Delivering food, products or publications;
  • Acting as a chauffeur, taxi or limousine or other livery service;
  • Transporting flammable or hazardous materials;
  • Carrying equipment;
  • Towing vehicles;
  • Trucking and moving freight.

We offer a variety of programs & coverages carefully designed for all types of drivers and vehicles. No one is refused! The experienced agents at 321 Insurance will listen to your specific needs and shop our many companies to find you the best coverage and the most affordable rates for your commercial automobile needs. You can trust that with the purchase of any policy you will receive professional and personalized service each and every time.