When you drive a car for personal use, you need a personal auto insurance policy to cover you in the event of an accident. But what about when you’re driving a car for business use? What happens if an employee gets in an accident while driving your commercial vehicle?
Let’s explore Commercial Auto Insurance and why you may need it.
Who Needs It?
If your business employs drivers, you may be required by the state to carry commercial liability insurance. Even so, businesses engaged in delivery or transportation services should carry a commercial auto policy to protect the company from financial responsibility in the event that the driver is in an accident.
A separate policy is needed for commercial drivers, since a standard Businessowner’s policy won’t cover it.
If you are the driver, be sure to ask what kind of commercial auto policy your employer carries. Though basic liability coverage is standard, some policies include additional types of coverage like collision or comprehensive insurance. Depending on the type of driving you do, you will want to make sure that you are covered in all areas of risk for yourself and the vehicle.
How Does It Work?
With most commercial auto policies, you can “schedule” or list each car that the business utilizes, separately. This gives you the opportunity to customize the coverage needed for you different vehicles, based on their usage and accompanying risks.
There are many different types of coverages available under your commercial auto policy. To learn more about what coverage is available, take a look at:
If you own a business that operates commercial vehicles, call ERM Insurance Brokers in Irvine, CA to discuss what customized commercial auto policy would best fit your needs.
An ERM expert is waiting for your call! (949) 222-0444