What Does Commercial Auto Insurance Cover?

If you own a business vehicle or a fleet of business vehicles, insurance protects your company, drivers and other assets. Like personal auto insurance, commercial auto insurance provides extra add-ons to standard insurance and protects business vehicles, whereas personal policies do not. Here are some coverages offered by commercial vehicle insurance.

Medical Bills and Lawsuits

Personal car insurance does not usually cover costs associated with accidents caused by commercial vehicles. If an employee is in an accident due to negligence and causes injury to another person, your company may be responsible for any medical bills. Commercial insurance covers medical bills and potential lawsuits.

Liability and Comprehensive Coverage

A collision may affect nearby property and other valuables. If an employee is involved in an accident and damages another individual or entity’s property, then your company is liable for those damages. In addition to damages from an accident, vehicles can suffer damage when there is no collision. For example, vandalism, theft, floods and fires can result in damage to your vehicle and without commercial auto insurance, you may not have coverage.

To protect your company from lawsuits or damage claims, business auto insurance is a necessity. Accidents can happen to anyone and at any time. Commercial auto insurance will cover your employees and your company in the event of an accident.