When Does Your Business Need Commercial Auto Insurance?

Many small business owners assume that their personal auto insurance policy provides the coverage they need for their work vehicles. Another assumption is that their current policy will provide the adequate coverage needed if in fact an accident occurs. All this couldn’t be further from the truth, as auto insurance is not one-size-fits-all.

Businesses with work vehicles need to know about the difference between personal and commercial auto insurance policies. Having a personal auto insurance plan will only protect just that:your personal autos. This is why businesses need a commercial auto insurance policy in place to provide the right coverage.

Personal Auto Plans

A personal plan is designed only for individuals and not business entities. Coverage options typically define “insured” as the individual named in the declarations as well as that person’s spouse and family. All this is not relevant when talking about coverage for a business and the employees within it. Commercial auto insurance is an entirely separate plan that needs to be added to a small business if they intend to provide some sort of transportation within their business operations.

Who Needs Commercial Auto Insurance

Businesses will need commercial auto insurance if they use a vehicle for work or own other vehicles to operate their duties. Many people think that big rigs that transport heavy payloads across states are the only kind of vehicle that need commercial auto insurance. However, commercial vehicles actually include everyday vehicles including cars, pickup trucks, and sport utility vehicles.

Vehicles that can also benefit from commercial auto insurance are those that are more naturally linked with commercial work. From fleets of large trucks and utility vans to flatbed, limousines and vehicles outfitted with work equipment, the list is vast. Essentially, if your business uses practically any vehicle for official use, it’s likely that you need to invest in commercial auto insurance.

Commercial Auto Coverage

If you have personal auto insurance, you have a pretty good idea of what commercial auto insurance covers. The same major coverages can apply between personal and commercial, but there are some add-ons more fitted for commercial driving.

Add-ons for employees and equipment are included in commercial auto insurance, giving a blanket protection for all employees involve dinusing official vehicles and the loading and unloading of goods. Also, commercial auto insurance provides coverage for your business assets in the event of a lawsuit.

Additional Parts of Commercial Auto Insurance

Businesses need to meet their respective state’s liability insurance requirements, such as bodily and property damage coverage. If a business owner doesn’t own a commercial vehicle outright, the bank they use also might require comprehensive and collision coverage.

There are additional pieces of coverage that can be considered, including:

  • Uninsured/underinsured motorist: This kind of insurance protects you if you’re involved in an accident with another driver who happens to not have insurance.
  • Medical payments: This kind of coverage helps businesses take care of expenses incurred when they are injured in an accident.
  • Roadside: Emergency roadside insurance helps a business in the event they have issues with batteries, tires, fuel or have locked their keys inside.

About Newman Crane & Associates Insurance

Deciding what coverage you need and what limits and deductibles make the most sense can be tricky. Since 1965, Newman Crane & Associates Insurance has been helping Central Floridians make sense of their options and make the smartest choices for their circumstances. Whether you need Warehouse Insurance or any other type of business or personal coverage, we encourage you to contact our friendly, experienced, and capable team today. Call us at (877) 874-4673 for a consultation.