The Walters Agency
Similar to personal auto insurance, commercial auto insurance is a policy of physical damage and liability coverages for vehicles used in the operation of a business. This insurance covers all commercial vehicles including work cars, vans, pickup trucks, trucks, tow trucks and dump trucks. In general, a commercial vehicle is any vehicle or trailer used to transport work-related goods or materials. It is often helpful because some business usage and vehicle types may be excluded from personal auto insurance policies. Some states will require a minimum amount of commercial liability insurance.
This insurance is necessary for anyone who owns a business and leases or rents vehicles. It is required for anyone whose employees drive company-owned, leased or rented vehicles or if employees drive their personal vehicles for company business. Work vehicles have insurance premiums paid for by the company.
If an accident occurs while conducting business, this insurance policy can provide a variety of coverages such as liability, collision, comprehensive, personal injury, and uninsured motorist coverage. There are many different types of coverage for all situations. Bodily injury liability will pay for bodily injury from an accident for which you are at fault and will provide a legal counsel. Property damage liability will provide protection if a vehicle damages someone's property and will provide legal counsel. Collision coverage is for when the vehicle hits or is hit by another vehicle. Comprehensive coverage is for any damage to your vehicle caused theft, vandalism, flood, fire, and other natural disasters. Personal injury coverage will pay medical expenses for the driver and passengers in the commercial vehicle. Uninsured motorist coverage pays for injuries or property damage caused by an uninsured driver or a hit-and-run driver.
Regardless if you are operating a large company or a small business, if you face a lawsuit following a serious accident a commercial auto insurance policy can shield your company's assets. Rather than risking financial danger, you and your employees will be protected.