Commercial auto insurance protects businesses from loss in the event of an accident. Companies who operate fleets or use a personal vehicle for business purposes should consider this form of coverage for their vehicles. Commercial auto policies provide some of the same protections the traditional insurance policy provides.
What is commercial auto insurance?
Commercial car insurance provides physical damage and offers liability coverage for a vehicle. A commercial vehicle insurance policy covers any vehicle that is used for business purposes. Any vehicle used for commercial purposes are at an increased risk of liability when used daily for business-related functions.
How do you know whether or not you need commercial car insurance?
Many self-employed professionals and business owners may benefit from having this type of conversation. If you ever use your vehicle for the purpose of transporting goods, a commercial auto policy would make sense. A commercial auto policy may be necessary for those who require higher limits due to the nature of the business. If a person relies on a commercial vehicle for hauling items like equipment, an auto policy may be appropriate. If a person has to operate a vehicle that is owned by a company, commercial car insurance may provide added protection. A business that operates fleet may also require a different level of coverage that is lacking in the traditional auto insurance property.
What makes commercial auto policies different?
The typical auto insurance policy only provides coverage for the typical citizen. The typical policy doesn’t account for any type of activity that differs from the normal driving habits of the average citizen. The commercial car policy is developed with commercial driving requirements in mind. For example, a commercial vehicle that is used for towing faces elevated risks in comparison to the typical vehicle operated by the private citizen. Commercial car policies serve the diverse needs of business owners who rely on vehicles to conduct everyday business.
Commercial car insurance policies provide enhanced levels of protections for business owners. These policies are specifically designed to address the elevated risks certain drivers face when operating a vehicle for business purposes. These policies are customized to account for the nature of the industry and aren’t developed with the private citizen in mind.