Commercial Auto Insurance

The Importance of Commercial Auto Insurance

As a business owner or manager, commercial auto insurance is one of the most important investments you can implement for your business. Also referred to as car or vehicle insurance, commercial car insurance is a type of insurance product designed for vehicles used for business purposes such as trucks, motorcycles, limousines, taxicabs, and other road vehicles. Many business owners or managers never consider car insurance because they erroneously believe that personal auto insurance offers adequate protection.

Who Needs Commercial Car Insurance

You need commercial car insurance if your business owns, hires, or operates with private vehicles. You also need commercial insurance if you use your car for business operations. A personal auto insurance cannot provide coverage for vehicles used for work purposes. Usually, businesses have much higher insurance needs as they deal with passengers, employees, work equipment, as well as customers. Commercial auto insurance is therefore required to cover the requirements above adequately.

How It Works

You obtain commercial car insurance coverage the same way you acquire regular vehicle insurance. Decide the type of coverage plan you want and look into optional coverages with an insurer. Then select a provider with the best coverage plans and affordable rates.

Types of Commercial Car Coverage

The main types of car insurance include liability insurance, uninsured/underinsured coverage, comprehensive insurance, and collision insurance. Liability insurance covers injuries or damage litigations your business may incur as a result of an auto accident. Comprehensive insurance will cover loses as a result of disasters like trees falling on your car while collision insurance protects you in case of a collision with another car. Underinsured/uninsured covers you from losses resulting from accidents involving motorist with no coverage or minimal coverage.

Major Benefits

Commercial car insurance is essential for any businesses. It protects against ordinary losses such as theft, damage, employee injury, and liability claims. If your company is faced with such losses, commercial car insurance can help the business recover and reduce the risk of going out of business.