Personal auto insurance has limitations. It doesn’t allow for the amount of coverage needed to insure a business with drivers and company cars. As a business owner, it’s important that you are aware of the varieties of coverage within your auto insurance policy. ERM’s insurance agents are very knowledgeable about commercial auto insurance in Orange County, and can help you determine if your business needs it.
Commercial auto insurance can protect you and your employees in ways that personal auto insurance can’t. Commercial auto insurance in Orange County has more extensive liability protection than personal auto insurance, which is the key difference between the two. As a business owner, commercial auto insurance is a practical choice because the policy assumes that company cars will be utilized by multiple employees, instead of one individual.
If your business specifically employs drivers, you are required by the state to obtain commercial liability insurance. Even if no employees deemed “drivers” within your business, it’s still a good idea to protect them with commercial auto insurance, especially if they engage in transport or delivery services.
Commercial auto insurance will protect you and your employees in case of an accident on the job that results in destruction, bodily injury, or damage/injury to a third party when your driver is at fault.
There are three basic types of commercial auto insurance you can select, and an ERM agent would be more than happy to help you through the deciding process. They include liability insurance, physical damage insurance, and “other.”
Commercial liability auto insurance offers protection if you or an employee is at fault for an accident that causes bodily harm to a third party. Bodily injury & property damage can be included in liability insurance. This would cover medical costs and lost wages for the other party, should their injury result in an inability to return to work.
If you or an employee damages the third party’s vehicle, liability insurance will cover the cost of their repairs. Finally, it will cover the costs of a lawsuit if one is filed against you or your employee because of an accident.
Underinsurance motorist insurance is very important to have in non no-fault states, like California. This coverage will protect you or your employees if they are the victim of an accident with an individual who has inadequate insurance coverage.
Uninsured motorist coverage will pay for the medical costs and damages if you or your employee is the victim of an accident with an uninsured driver.
Physical Damage Insurance
This second type of coverage under commercial auto insurance in Orange County includes collision and comprehensive insurance. Comprehensive insurance includes damage to your car caused by vandalism, theft, fire and natural disasters, civil disturbances, falling objects or animals.
The collision aspect of this coverage protects you from paying for collision damages on the company vehicle, regardless of who is at fault.
The third category of coverage within commercial auto insurance in Orange County is simply “Other.” This can include towing costs and associated labor, rental reimbursement, and medical costs, among others.
When you sign up for commercial auto insurance in Orange County, each company car you’d like to insure becomes listed under the policy. You are able to choose, or “schedule”, the coverage needed for one each, based on their usage and the risks associated with different vehicles.
Varying amounts of protection allow you the control to decide on how much protection each specific vehicle has. Any businesses with regularly used company cars or vehicles registered in the company name need commercial auto insurance in Orange County.
For more information on commercial auto insurance in Orange County, call ERM Insurance Brokers in Irvine, California today! (949) 222-0444