What Is Commercial Auto Insurance?
Although commercial auto insurance is a specialist policy for any automobiles used for business, it is fairly comparable to personal auto insurance. The highest protection for your business and employees when they are engaged in an accident is provided by a commercial policy, which also covers your employees who are listed as drivers when they use these cars. Coverage under commercial auto insurance includes:
- Liability: Commercial auto insurance provides coverage for bodily injury and property damage liability, just like personal auto insurance does. This insurance covers any harm or loss caused to a third party or their vehicle up to the policy amount if you or a covered employee is at fault for an accident.
- Collision: Your commercial auto insurance policy will cover the costs of repairs, less your deductible, if one of your insured work vehicles is damaged in an accident.
- Comprehensive: This coverage pays to fix your car, less your deductible, if it is stolen, vandalized, or a window is broken.
- Medical Payments: If one of your covered vehicles is involved in an accident, this insurance coverage pays for the driver’s and any injured passengers’ medical bills regardless of who was at fault.
- Uninsured/underinsured Motorist: If a third party who does not have insurance or does not have enough insurance causes your car accident, this policy pays for your injuries and vehicle damage. Some insurance will have a minimal deductible for the component covering property damage.
Any small or large firm that uses vehicles like company cars, forklifts, service and dump trucks, and work vans is advisable to invest in commercial auto insurance. Any vehicle you buy and operate for your company needs to be covered by a commercial coverage. All of your company vehicles ought to be covered by a commercial auto insurance policy, regardless of whether they are used for job-specific transportation of products, transportation of staff to meetings or project locations, or other business-related purposes.
Am I Required to Have Commercial Auto Insurance?
According to Tennessee state law, all car owners must provide evidence of their financial responsibility for their vehicle, whether it be personal or business auto insurance. You’ll get better coverage under a commercial policy than a personal car policy if your vehicles are solely used for business. Being a solo entrepreneur makes it challenging to determine whether commercial auto insurance is required. For clarification on the right coverage for you, speak with an insurance agent. If a car accident does happen, this coverage is a little fee to pay for the safe protection of your company vehicles and staff, which could otherwise cost thousands of dollars.
What Should I Look for in a Commercial Auto Policy?
Consider the following elements of your potential commercial policy when speaking with your agent about policies:
- coverage for particular kinds of cars
- Deductibles and premiums
- a policy that is most appropriate for your industry, as some are more risky than others.
- Discounts that may be available with your own auto insurance
Check your commercial policy’s provisions to be sure they meet your needs for your company’s vehicles. Due to the unique nature of every business, customized insurance may be needed in addition to regular coverage. Give your agent a list of the commercial insurance needs that are most important to your company.