Numerous companies depend on a fleet of commercial cars to conduct…
Commercial vehicle insurance is needed to cover the cars, trucks, and vans used in conducting your business. Large fleets as well as small businesses should be properly covered by a commercial auto insurance policy.
What Is Commercial Vehicle Insurance?
Commercial Vehicle Insurance is a policy of physical damage and liability coverages for amounts, situations, and usage not covered by a personal auto policy. Seems obvious, doesn’t it? But, seriously, knowing the difference between a personal auto insurance policy and a commercial auto policy (and when you need which) is important business — for your business. This type of business insurance covers a variety of vehicles. You may also have heard of this coverage referred to as commercial auto insurance, commercial car insurance, truck insurance, or fleet insurance.
Why Do You Need Commercial Vehicle Insurance?
That’s a good question. Certain business usage and vehicle types may be excluded from personal policies. Why? Since personal auto policies were not meant for businesses, they are written and rated differently. More important to you — a business owner or manager — businesses often need the particular coverages found in a commercial auto insurance policy.
Determining whether your situation requires commercial auto coverage can still be confusing. Here’s a little more information and examples of when you need commercial insurance.
What Does Commercial Vehicle Insurance Cover?
Commercial vehicle insurance, like your personal auto policy, provides similar coverages such as liability, collision, comprehensive, medical payments (or personal injury protection) and uninsured motorist coverage. However, there are also differences between a commercial auto insurance policy and your personal auto policy that may include eligibility, definitions, coverages, exclusions, and limits.
What are the coverages?
- Bodily injury liability coverage – pays for bodily injury or death resulting from an accident for which you are at fault and in most cases provides you with a legal defense.
- Property damage liability coverage – provides you with protection if your vehicle accidently damages another person’s property and in most cases provides you with a legal defense.
- Combined single limit (CSL) – Liability policies typically offer separate limits that apply to bodily injury claims for property damage. A combined single limits policy has the same dollar amount of coverage per covered occurrence whether bodily injury or property damage, one person or several.
- Medical payments, no-fault or personal injury coverage – usually pays for the medical expenses of the driver and passengers in your vehicle incurred as a result of a covered accident regardless of fault.
- Uninsured motorist coverage – pays for your injuries and, in some circumstances, certain property damage caused by an uninsured or a hit-and-run driver. In some cases, underinsured motorist coverage is also included. This is for cases in which the at-fault driver has insufficient insurance.
- Comprehensive physical damage coverage – pays for damage to your vehicle from theft, vandalism, flood, fire, and other covered perils.
- Collision coverage – pays for damage to your vehicle when it hits or is hit by another object.