What Does Commercial Auto Insurance Cover?

Commercial auto insurance is essential for businesses with vehicles—without it, an accident can significantly impact your financial well-being. Selecting the right plan for your organization is a critical process that requires careful research and strategizing. Keep in mind that a proper plan will offer comprehensive coverage for many types of cars.

Running a business is sophisticated, time-consuming, and always challenging. We’re here to keep business insurance simple. Keep reading to learn about commercial auto insurance and how to pick out the best policy for your company.

What Is a Business Auto Policy?

Commercial auto insurance is a type of coverage designed for businesses. The plan covers all vehicles for business, whether they are purchased for the business or a personal vehicle you use to conduct business.

Commercial auto insurance can cover liability coverage and collision coverage. A liability plan helps cover the costs for repairs and medical treatment for the other driver if your employee is involved in an accident. Collision coverage pays for repairs or medical services your employee requires following an accident.

You can use a policy to cover:

Food trucks
Dump trucks
Work vans
Delivery trucks
Forklifts and construction vehicles
Service utility trucks

Who Needs Commercial Auto Insurance?

You need a policy if you own a business that relies on commercial vehicles. Employees who drive for work-related assignments like sales calls or product delivery need coverage for personal injury protection. Self-employed or sole proprietors may require additional research to determine whether commercial or personal auto insurance suits their needs.

If you’re a sole proprietor unsure if a commercial or personal policy is the most beneficial, contact an insurance company and learn more about their offerings. Explain to the agent that you’re a business owner and describe how you plan to use the vehicle for business.

Before reaching out for guidance, consider:

Vehicle type and weight
What your current plan offers
How you use the vehicle for business, and how often
The amount of coverage you need based on business activity

Ask Commercial Auto Insurance Carriers About These Plans

There are three general categories of auto insurance policies for businesses. You can apply for a standalone policy or pursue an endorsement that modifies your existing policy. Here’s an explanation for each major business auto policy:

Commercial Auto

Standard commercial auto insurance applies to many types of vehicles, including cars, trucks, and vans that you or your staff use for business. If you or an employee inflicts injuries or property damage in an accident, your policy helps cover the costs up to the coverage limit.

Your policy covers three types of drivers:

The named insured – The individual who took out the policy is insured regardless of whether they were involved in the accident.
Permissive drivers – Anyone you have granted permission to operate the commercial vehicle is covered.
Omnibus users – Anyone who can be considered liable for any accident or negligence perpetrated by you or your permissive drivers is insured.

Non-Owned Auto

Non-owned auto plans cover damage to another person’s vehicle, bodily injury claims that you caused to someone else, and expenses if people sue you for negligence. This policy applies to vehicles you don’t own but that are used by your employees to conduct business.

This insurance plan provides comprehensive coverage for the third party. Your hired and non-owned vehicles receive no assistance with medical bills if your staff suffers injury in an accident, and no liability coverage is provided when an accident occurs outside business hours.

Hired Auto

Hired auto insurance covers all trucks and cars your company borrows, rents, and leases. The policy helps pay for medical bills and third-party damage. You can also modify the plan with a physical damage endorsement for added protection.

Finding a solid commercial auto insurance plan can be time-consuming and overwhelming. InSource has over 80 years of experience helping businesses fulfill their coverage needs.

Our Commercial Insurance Approach

Consider These Endorsements to Modify Your Policy

There are many endorsements (also known as riders) you may add to your business auto policy to protect your workforce and business assets in the event of an accident or lawsuit. You can provide policies for contractors, employees, equipment when loading and unloading goods, and more. Here’s a brief explanation of a few of the most common riders:

Personal Injury Protection (PIP) and Medical Payments Coverage

Personal injury protection (PIP) and medical payments insurance help cover costs if you or your passengers are injured in an accident.

Uninsured Motorist

Uninsured motorist coverage assists with damages and medical fees if a third party involved in the accident is uninsured or underinsured.

Physical Damage Coverage

Physical damage is an umbrella policy that includes collision and comprehensive coverage types. The plan assists with repairs as long as the damage falls under a covered risk listed in the policy. To most business insurance policies, a collision is defined as a vehicle hit by another vehicle or an object. Comprehensive can be anything other than a collision, such as vandalism, wind, fire, or hail damage. You can add physical damage coverage to reinforce your existing plan.

Comprehensive Coverage

A comprehensive policy covers the cost of damage due to theft, inclement weather, vandalism, fire, and accidents involving wildlife. Ask your commercial auto insurance company about any exclusions to ensure you have a plan that encompasses as much as possible.

Emergency Roadside Insurance

This policy offers coverage for roadside assistance, including locksmithing, towing, car battery support, or flat tire service.

Personal Effects Insurance

Personal effects policies cover any damaged personal belongings you or your employees have.

hands of car driver on steering wheel, road trip, driving on highway road

Navigate Commercial Auto Insurance With InSource

Figuring out what your commercial auto insurance can cover is a robust process that requires comparing policies and reading plenty of guides before making a final decision. But with so many options, it’s easy to feel overwhelmed. The team at InSource Insurance Group has the experience and partnerships to help you find coverage that offers excellent protection for your business and employees.

We help you define your ideal commercial insurance coverage plan. Our team strives to provide you with a quote that delivers long-term security and offers the tools you need to address issues proactively.

Ready to secure the business auto policy you deserve? Reach out today.

What Does Commercial Auto Insurance Cover?

What Is a Business Auto Policy?

Who Needs Commercial Auto Insurance?

Ask Commercial Auto Insurance Carriers About These Plans

Commercial Auto

Non-Owned Auto

Hired Auto

Consider These Endorsements to Modify Your Policy

Personal Injury Protection (PIP) and Medical Payments Coverage

Uninsured Motorist

Physical Damage Coverage

Comprehensive Coverage

Emergency Roadside Insurance

Personal Effects Insurance

Navigate Commercial Auto Insurance With InSource

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