Automobiles which are used for business purposes require commercial auto insurance due to increased risk and liability exposure. A commercial automobile insurance policy protects commercially used vehicles against physical damages and other liabilities. In addition to vehicle protection, this policy also covers injuries to employees, injuries to other people caused by employees and property damage.
Commercial Auto Insurance Coverage
The following coverages are among the most common types included in a commercial auto insurance policy.
Auto Liability
Commercial auto liability coverage helps policy owners pay for injury related expenses or property damage caused during an accident in which the business owner or an employee is at fault.
Medical Payments Coverage
Medical payments coverage pays the medical expenses for business owners, employees and passengers who have been in an automobile accident. Medical costs are paid, up to the coverage limit, regardless of who is at fault for causing the accident.
Comprehensive Coverage
Comprehensive coverage can help policy owners pay for vehicle damages caused by vandalism, animal related accidents and damages caused by the weather. This coverage does not pay for damages resulting from vehicle to vehicle accidents.
Collision Coverage
No matter who is at fault, collision coverage pays for damages to policyholders vehicles who have been in an accident with another object or the vehicle’s overturn.. The object may be another vehicle or a stationary item such as a tree.
Uninsured or Underinsured Motorist Coverage
In the event of an accident which is caused by another motorist who is uninsured or underinsured, uninsured or underinsured motorist coverage pays for the medical expenses, loss of income or other damages to employees or their passengers. Covered expenses include expenses that are not typically covered by a workers’ compensation policy.
Types Of Vehicles Covered
Commercial auto insurance covers any vehicles business owners own, borrow, rent or lease and covers employee owned vehicles which are used for either business or personal use. Common types of commercial vehicles covered include:
- Cars
- Trucks (box, pickup & utility)
- Vans (cargo, work & box)
Who Should Acquire A Policy?
Businesses who use vehicles for transportation and/or require employees to operate a vehicle for business purposes should consider acquiring a policy. Some common types of businesses who should acquire a policy include:
- Electricians
- Plumbers
- HVAC contractors
- Event companies
- Companies who deliver
- Distributors
How Much Does Commercial Automobile Insurance Cost?
There are a variety of factors which affect the cost of a commercial auto insurance policy including:
- Make, model & year of the vehicle(s)
- Gross weight of the vehicle(s)
- Collective driving records of insured drivers
- Vehicle(s) purpose of use
- Desired limits & deductibles
- Total amount of vehicles insured
Reach Out To The Business Insurance Agents Today
If you are interested in acquiring a commercial auto insurance policy, it is important to speak with an experienced business insurance brokerage to discuss your coverage needs. For more information, please call the JMG Insurance Agency at 844-304-7332 or by requesting a quote online.