What types of losses can be covered by commercial auto insurance?
What is Commercial Auto Insurance?
Commercial auto insurance is a policy of insurance designed to protect businesses from financial losses that may occur due to accidents or other damage resulting from using vehicles for business purposes. This type of insurance is usually sold by an independent insurer but may be included in a business owners policy (BOP) depending on the company and their needs.
What Does Commercial Auto Insurance Cover?
Commercial auto insurance covers the costs of repairing or replacing a vehicle that is damaged or totaled in an accident. It also covers medical bills and other damages paid out to other parties, including legal fees and bodily injury claims resulting from an accident that is the fault of the insured. Additionally, this type of insurance is specially designed to cover automobiles used in business, such as company car, delivery truck, or long-haul truck.
Benefits of Commercial Auto Insurance
Commercial auto insurance provides peace of mind for business owners by protecting their business from losses that could result from an accident. It also helps companies maintain their cash flow and operations by replacing a vehicle quickly should it become totaled in an accident. Additionally, without this type of insurance, businesses would be completely exposed, legally and financially, to legal responsibility should they be found liable for an accident.
Types of Commercial Auto Policies
There are several types of commercial auto policies, including:
- Liability Coverage: This covers the cost of bodily injury and property damage caused to other parties resulting from an at-fault accident.
- Physical Damage Coverage: This helps pay for the cost of repairing or replacing the imured vehicle in case of an accident, theft or fire.
- Medical Payments Coverage: This helps pay for medical bills for the driver and passengers of the insured’s vehicle resulting from an at-fault accident.
- Uninsured/Underinsured Motorists Coverage: This helps pay for medical bills and other damages that occur when a driver who is at fault in an accident either has no insurance or inadequate coverage.
- Rental Reimbursement Coverage: This helps cover the cost of a rental vehicle while the insured’s vehicle is being repaired after an accident.
Commercial auto insurance is an essential part of protecting any business that operates a vehicle. With the right coverage, business owners can rest assured that they are protected from any potential financial losses that could occur as a result of an accident or other vehicle-related issues.