If your business operations involve the regular use of vehicles – whether you’re a contractor driving between jobsites, or a restaurant owner with a fleet of food delivery vehicles – you need the right protection in place to protect yourself, your employees, and your bottom line. That’s where commercial auto insurance comes in.
What is commercial auto insurance?
Commercial auto insurance is designed to fit your business needs and help you protect the vehicle, or fleet of vehicles, you use to run your business efficiently.
Commercial auto insurance is designed to fit your business needs and help you protect the vehicle, or fleet of vehicles, you use to run your business efficiently. This coverage is designed to ensure you’re not leaving your business vulnerable to costly risks and expensive losses. Commercial auto insurance can help in the following scenarios:
- If you, your employed drivers, or your passengers get injured in a car accident involving your business vehicle, commercial auto insurance can help cover medical expenses and lost wages.
- If you have to rent a temporary car for regular business operations after a car accident involving your business vehicle, commercial auto insurance typically provides replacement car coverage.
- If your business acquires new vehicles, commercial auto insurance automatically covers these vehicles through a blanket fleet endorsement if you have a fleet policy.
Do you need commercial auto insurance?
You might be under the impression that your personal insurance policy will cover your vehicles when they’re being used for business operations, but that isn’t always the case. If you’re unsure if you need commercial auto insurance, there are a few questions you can ask yourself to help determine your coverage needs:
- Who owns and operates the vehicle? Is the vehicle you’re using registered in your personal name or your business’ name? If it’s registered to your business, you should have commercial auto insurance coverage. Any full-time employees that use the vehicle for business purposes should be listed as drivers with your insurance company. If you have a fleet of vehicles for your business, you should have commercial auto insurance to cover the entire fleet.
- How is the vehicle used on a daily basis? The way your vehicle is used will also impact whether you need personal or commercial auto insurance. You should have commercial auto insurance coverage if your vehicle is used for any of the following reasons:
- You transport or deliver goods, materials, or merchandise
- You transport equipment or tools
- You transport customers for any reason
- What type of vehicle are you using? Bigger, heavier commercial vehicles often cause more damage if they’re involved in accidents, so you should have the proper protection in place for these scenarios. Having commercial auto insurance coverage is essential if you drive a vehicle specifically designed for construction, maintenance, or other industrial purposes. You likely need commercial auto insurance if you and your business use the following vehicles:
- Pick-Up Trucks
- Vehicles used for delivery
- Dump Trucks
- Road Tractors
- Trailers used in a business to transport goods or equipment
Can you prevent claims from happening entirely?
While insurance is crucial when it comes to protecting your bottom line following an incident, nothing can eliminate your risks altogether. However, you can work to mitigate those risks, and we can help you! This is where our Risk Services programs come in.
We’ve developed exclusive programs and services to help you enhance workplace and employee safety – a must in any business. Our Risk Services Specialists are available to help you create, implement, and maintain a company safety program and provide you and your employees with valuable safety advice.
When you need help quickly, our Risk Management Assist service grants you direct telephone access to our Risk Services Specialists, who can answer a variety of questions on topics including property, auto, and liability loss prevention. They can also provide guidance on any regulatory, legislation, or code requirements your business may be dealing with.
Other coverage options to consider:
Commercial property insurance:
Commercial property insurance can help protect your physical assets. This doesn’t just mean your storefront, warehouse, or other business location; this coverage can also help cover the repair or replacement costs for tools, equipment, inventory, electronics, and other assets that are crucial to running your business.
Commercial general liability insurance:
Also known as CGL for short, this coverage can help your business recover from a loss if you’re found legally liable for bodily injuries or property damage to a third party. CGL insurance can also offer protection in situations where you or your employees are conducting business offsite.
Business interruption insurance:
Business interruption insurance will help to pay for your loss of business income should you suffer a covered loss at your business location. This coverage is designed to help you recover lost business income and cover ongoing business expenses if your business is temporarily closed for repairs.
