Why Your Company’s Vehicles Need Commercial Auto Insurance
People that use their vehicle for business need to buy a commercial auto insurance policy. This can include plumbers, electricians and couriers, for example. The policy can include important coverages that will protect the business’ liability and the value of the vehicle.
Commercial auto insurance isn’t just for cars. Other types of vehicles covered under this type of policy include, among others, pickup trucks, vans, box trucks, food trucks, dump trucks, tractor trailers and service utility trucks.
The most important coverage on a commercial auto insurance policy is liability. This provides coverage for the other party if your vehicle’s driver causes an accident. It covers the other party’s bodily injury and property damage, up to the limits on the policy.
Uninsured motorist is a coverage that is available to offer protection if an uninsured or underinsured person causes an accident involving your vehicle. Your insurance company steps in to cover bodily injury you and any passengers in your vehicle suffer. It also covers damage to your vehicle. You can also add medical payments, which pays for medical treatment regardless of whose fault the accident is.
You can add comprehensive coverage to your commercial auto insurance policy. This covers damage to your car from incidents such as fire, flying rocks and a tree falling on it. Collision coverage covers damage to your car if the driver is at-fault for the accident.
An accident may take your car out of commission, but your business needs to go on. You can add loss of use to cover this type of incident. Your policy will cover the cost of a rental vehicle while yours is being repaired or replaced. Some insurance companies offer a GPS device that helps you monitor where your company’s vehicle is and how safely it is being driven. There are highly specialized coverages available as well, such as coverage for a contractor’s expensive tools left in their vehicle.
If you have a vehicle you use in your business, it is vital that you properly insure it. A single accident could decimate your business if you don’t carry the right insurance coverage.