Commercial Auto Insurance, What it Is

What does this type of auto insurance do? This form of auto insurance is made to protect businesses or companies in the event there is an accident, theft, injury or damages that include the business vehicles. This also includes the coverage of business staff that are driving the vehicles or rent vehicles used for business purposes.

Business owners are required by law to have the same kind of coverage for the vehicles that are used in their business. It often is typical for businesses to have the same coverage that they use in their own personal vehicles or business travel. The point is, regardless of where you are driving, if you are using a company vehicle on public roads it must be covered by an insurance policy meeting at least the minimum law requirements. Commercial auto insurance is practically necessary for all businesses that keep and maintain company vehicles.

Commercial Insurance for Vehicles

Commercial vehicles are used to transport materials, goods, equipment or tools that are related to your business. This can also include trailers that are used with commercial vehicles.

Let us take for example you have an air conditioning business. Your business offers the service of personnel to visit the home of a customer or business in order to service these air conditioners. How do your personnel travel from the company to the consumer in need of service? By the use of commercial vehicles that transport all necessary tools for the personnel to perform their duties. The commercial auto insurance is therefore necessary in case there is an accident while these personnel travel to their destination.

So, what all does this type of insurance cover? Read on for a very brief overview.

While policies may vary by state, this is a list of the most common commercial auto insurance coverage that might be included in your policy: accident benefit coverage, third party liability coverage, uninsured or unidentified motorist coverage, direct compensation for property damage, collision coverage, comprehensive coverage and family protection coverage.

These are the general types of coverage that may be available from your chosen insurance agent. But, it is important to talk to a licensed insurance representative to get clarification or more information about your policy and what all it entails.

Source by Marcel Rain

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