What Is Commercial Auto Insurance?
Any business, large or small, that owns, leases, or rents a vehicle for business use should have a commercial auto insurance policy. Many business owners may not realize that commercial auto liability coverage is required in most states.
A commercial auto insurance policy can cover the cost of damages to your vehicle from accidents or destruction, bodily injury, or damage/injury to a third party when your driver is at fault.
If your business has any number of vehicles in the company’s name or vehicles that are regularly used for business purposes, you need commercial auto insurance coverage.
Liability insurance. This coverage includes property damage, bodily injury, underinsured motorist and uninsured motorist.
- Bodily injury & property damage
If you are at fault in an accident, causing bodily injury to a third party, this coverage would pay for their medical costs and lost wages as a result of their inability to return to work. If you cause damage to the other vehicle, this would cover the expense of the repairs. Additionally, your legal expenses would also be covered in the event that a lawsuit is filed against you.
- Underinsured motorist coverage
Unless you live in a no-fault state, this coverage would protect you in the event that you are the victim of an accident and the driver at fault doesn’t carry adequate liability insurance. In a no-fault state, each driver’s insurance would cover their own damages.
- Uninsured motorist coverage
If you are hit by an uninsured driver your damages and/or medical costs would be covered.
Physical damage insurance. This coverage includes both collision and comprehensive insurance.
- Collision insurance
If you are in an accident that causes damage as a result of any type of collision, regardless of which party is at fault, collision insurance would cover the costs.
- Comprehensive insurance
There are an infinite number of ways that your commercial vehicle may sustain damage other than an accident. Comprehensive insurance pays for the damages associated with theft, vandalism, earthquakes, flood, fire, or animals.
Other coverage. This may include towing and labor, medical bills, or rental reimbursement, to name a few.
For more information on commercial auto insurance, call ERM Insurance Brokers in Irvine, California today! (949) 222-0444