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What is commercial auto coverage for businesses?

You will need commercial vehicle insurance to cover your vehicles, trucks, vans, and other equipment used in the operation of your business. A commercial auto policy should cover large fleets as well as small businesses.

What is commercial auto insurance?

A policy of liability and physical damage for commercial vehicle insurance covers amounts, situations, or usage that are not covered under a personal auto policy. This type of insurance is available for many types of commercial vehicles, from automobiles used for business purposes to include company cars to large trucks and other vehicles.

What types of vehicles are covered under a commercial auto policy?

You will need a commercial auto policy to cover larger commercial vehicles such as box trucks, food trucks and work vans. This policy can also include coverage for employees who operate the vehicle or any equipment. This coverage is also known as commercial auto insurance or commercial car insurance. Commercial vehicle insurance is usually associated with trucks and other recognized work vehicles. However, regular cars or automobiles may also need a commercial policy if they are used for business purposes.

Why is commercial vehicle insurance necessary?

Personal auto insurance policies may not cover certain types of vehicle or business usage. Why? Because personal auto policies are not intended for businesses, they can be written and rated differently. You, the business owner/manager, are more important than ever. Businesses often require the specific coverages included in commercial auto insurance policies.

It can be difficult to determine whether you need commercial auto coverage. We have some examples and more information about when you require commercial insurance.

What is commercial vehicle insurance?

Like your personal auto policy but with commercial vehicle insurance you get similar coverages like liability, collision, comprehensive and medical payments (or personal injuries protection) as well as uninsured driver coverage. There are differences between your personal and commercial auto policies that can affect eligibility, coverages, exclusions and limits.

What coverages are available in a policy for commercial vehicles?

  • Bodily Injury Liability Cover – Pays for bodily injury and death that results from an accident in which you were at fault. In most cases, it also provides legal defense.
  • Property Damage Liability Coverage – Provides protection in the event that your vehicle causes damage to another person’s property, and most importantly provides legal defense.
  • A combined single limit (CSL). Liability policies often offer separate limits for bodily injury and property damage. A combined single limit policy provides the same amount of coverage for each covered event, regardless of whether it covers bodily injury or property damages.
  • No-fault, personal injury or medical payments usually covers the medical expenses of the driver and the passengers of your vehicle that result from a covered accident.
  • Uninsured motorist insurance – covers your injuries and certain property damage that is caused by an uninsured driver or hit-and-run driver. Underinsured motorist coverage may be included in some cases. This coverage is available in cases where the at-fault driver does not have sufficient insurance.
  • Comprehensive coverage for physical damage – Covers damage to your vehicle due to theft, vandalism or fire.
  • Collision coverage pays for vehicle damage when it is struck by another object.

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