Commercial auto insurance is a policy of liability and physical damage for amounts, situations, and usage not covered by the personal policy. Commercial autos are those used in the course of business and can be registered to the individual owner or the business itself. The key is the usage of the vehicle, and knowing the difference between a personal auto and commercial auto is important.
Why is commercial auto insurance needed?
There are certain types of vehicles and usage that can be excluded from a personal policy. Personal policies are not designed or rated to handle commercial exposure. More important to the veteran business owner or manager is that businesses often need the particular coverages found in a commercial auto policy.
What does a commercial auto policy cover?
- Bodily Injury:
This pays for the injury or death resulting from an accident for which you are at fault. In most cases this will provide legal defense.
- Property Damage:
Provides protection for accidently damaging others property. Both bodily injury and property damage in most cases will be covered under a combined single limit of liability.
- Medical Payments:
This pays for the medical expenses of the driver and passengers regardless of fault.
- Uninsured/Underinsured Motorist:
This pays for your injuries and in some circumstances, certain property damage caused by uninsured/underinsured or hit-and-run drivers.
- Comprehensive and Collision:
This pays for the damage to your vehicle from theft, vandalism, flood, fire, and other covered perils. Collision covers your vehicle when hit by another object.
A veteran owned business that uses vehicles in the course of business should consider a commercial auto policy. The detailed coverage above provides specific coverage to ensure that a loss from a vehicle during work will be handled by an insurance carrier. This provides further piece of mind and will ensure further contracts and profit.