It’s unavoidable – with countless millions of people driving their cars on the roadways of this nation, risk to a business utilizing commercial vehicles is high. Should a business owner or his or her employee be sued as a result of an accident in the operation of a company vehicle, the liability protection provided by a commercial automobile policy is what can mean the difference between continued fiscal health or financial ruin.
Commercial auto insurance covers vehicles that are used in the course of the performance of normal operational duties of a business or organization. Common examples would be delivery vans and trucks, courier vehicles, taxi cabs, ambulances and so on.
Those who own, lease, rent, and operate these vehicle in the operation of a business will always present liability exposure to the owner and firm or organization. As such, the coverage will tend to come with higher limits and will blanket-cover any automobile used in the normal course of business.
Coverage is designed for existing or newly acquired vehicles and it takes into account such conditions as the weight of the vehicle and its load capacity, among other elements. Additionally, this kind of a policy will take into account vehicles that are specifically equipped with features geared to certain tasks, such as snowplows, catering vans, lunch trucks, restroom facilities, racing equipment, hydraulic lifts, vehicles with altered suspensions, ladder racks, and trucks with built-in toolboxes, to name just a few.
Most states mandate third party liability coverage that includes bodily injury and property damage protection. Policies may also be extended to include physical damage protection such as comprehensive and collision coverage, direct compensation for property damage, uninsured or underinsured motorist protection, accident benefit coverage, hired or non-owned vehicle coverage protection, and more.
Should a business have 25 or more vehicles, then fleet insurance is a terrific option. This kind of coverage rates for the number of vehicles as opposed to rating each vehicle individually.
In order to offset the gap between the actual, depreciated value of a vehicle and its lease agreement, GAP insurance is available to correct this disparity for the business owner. This is what will alleviate being ‘under water’ on the lease in the event of some kind of loss.
Commercial auto insurance helps to keep drivers safe, to keep premiums reasonable and to protect a business from potential catastrophic loss. It’s probably the wisest decision a business owner can make.