What Does Commercial Auto Insurance Cover?

Responsible business owners are insured against losses or damages that might affect their business. Most business owners think that losses affecting the vehicles that drives their business will already be covered under their property or liability insurance polices – whether that’s loss of income insurance or commercial property insurance. But that would be incorrect, and what they really need is commercial auto insurance which specifically insures vehicles belonging to the business against losses or damages.

Everyone needs insurance, and as a responsible business owner you will want to make sure that you have the right insurance for your needs – otherwise, you will find out that you are underinsured or not insured at all when the time comes to claim.

Here’s more about just what’s covered under your business auto insurance policy.

Choosing Your Business Auto Insurer

When it comes to choosing your insurer, your best bet is to go with recommendations for an insurer that has been vouched for – either by a friend, contact or business associate that has dealt with them before and been exceptionally happy with their service. If you’re choosing an insurer yourself, read reviews on the internet to find out how dealings with the insurer has been for others. Then, compare quotes and make your final choice – but remember that the cheapest does not always mean the best.

Commercial Auto Insurance

Commercial Auto Insurance covers the vehicles that are part of your business against any losses, damages or claims – and it also protects the drivers of the vehicles in the event of an accident. Commercial auto insurance can sometimes cover the injuries of those who were involved in the accident and the injuries of a third-party should a claim arise: This alone should tell you why you need commercial auto insurance as part of your business.

Do You Need Business Auto Insurance?

Commercial Auto Insurance sounds like something that you’re only going to need if you run a company that spends a lot of time on the road – something with travelling sales representatives, or a company that transports cargo or delivers pizza. But people are mistaken when they think that only companies like these will need commercial auto insurance.

Most if not all businesses have transport entering into the equation at some point – getting workers to work, getting the CEO to an important meeting, getting stock for the month’s business or buying office supplies. All of these events will likely need a company car: And all of these events mean an accident could happen.

Your business needs commercial auto insurance, even if you think it might not.

Commercial Auto versus Equipment

Commercial Auto insurance policies will likely distinguish between items that are considered to be autos – vehicles – and cars that are considered to be equipment instead. Tractors, for example, will count as equipment – but can still be insured under a commercial auto insurance policy.

This is something that will depend on your individual policy, and if you aren’t sure about the specific points, then get in touch with your insurance company to explain the fine print.

Third Party Damages

Third-party damages that might arise in the event of a loss or claim can also be covered by your commercial auto insurance policy: This can include damages that are brought on by a third-party in the event of a claim – a driver that got injured by one of your delivery vehicles, for example.

If you aren’t sure what is and is not covered by your insurance policy, remember that you can always call your insurance company.