What Is The Role of Commercial Auto Insurance
Some business owners may believe that if they have personal auto insurance coverage, commercial auto insurance is unnecessary. However, in order to protect your business and its assets, small business owners should strongly consider obtaining commercial auto insurance.
Commercial auto insurance is essential for running a business that requires vehicles for transportation of goods or passengers, but it is also vital for any business that provides vehicles for its employees for the following reasons:
- It includes more comprehensive coverage that is specifically tailored to a business and its needs
- Businesses typically have more assets than do individuals, and those assets need to be protected
- It protects your business from potential liability if your employees have an accident while they are conducting company business
- It protects your business from liability for the cost of unexpected events such as accidents, collisions, theft and other situations
The types of coverage offered through most commercial auto insurance policies include the following:
- Bodily injury liability, which provides compensation for damages that occur to the bodies of other individuals involved in an accident if the insured is at fault
- Property damage liability, which provides compensation for any damage that occurs to the property of others
- Medical payments portion, which pays for medical bills
- Personal injury protection, which compensates for lost wages, hospital bills, rehabilitation bills, physical therapy bills, and more; also supplies life benefits if the covered individual dies as a result of an accident
- Comprehensive portion, which provides compensation for any damage that occurs to the insured vehicle for reasons not related to an accident. For example, if someone hit the vehicle while it was parked, the damages would be covered under this portion.
- Collision coverage, which provides compensation for the insured vehicle whether or not the insured is responsible for an accident
- Uninsured motorist, underinsured motorist or additional expense coverages
Commercial auto insurance tends to be a bit more costly than personal auto insurance. However, the peace of mind of knowing that your business is protected from significant, and potentially disastrous, liability is ultimately outweighs any unprotected risks and additional cost.