In many cases, the law will dictate that you must carry commercial auto insurance on any company-owned and operated vehicles. Understanding the components of a commercial auto coverage policy will help you choose the right one for your business needs.
Why You Need Commerical Auto Insurance
If you or an employee is involved in an accident in one of your vehicles, your company can be held liable for any resulting damages. That can add up to significant expenses. A commercial auto policy will cover those costs so you can continue to run your business.
Choosing the Right Coverage Options
Liability: This is one of the most important aspects of your commercial auto insurance policy. It pays for repairs to another vehicle if you are involved in an accident. It also protects you against any claims made after an accident.
Physical damage: This pays to repair damage to your vehicles that occur in the normal course of operation. It may also cover costs of repair from things like a tree falling on your car or truck.
Medical payments: This covers the costs associated with medical care needed after an accident.
Uninsured/underinsured motorists: Unfortunately, not every driver is responsible enough to have sufficient coverage. If a company vehicle is hit by someone without sufficient coverage, this component of your policy will pay for damages.
Knowing your coverage options can help you choose a policy that will protect your business interests.