If your company uses vehicles to conduct business, you will more than likely be required to carry commercial auto insurance / business vehicle insurance. Commercial vehicle insurance is similar to your standard auto insurance policy, except for the important fact of it covering the vehicles used for business purposes.
Commercial auto insurance is an insurance policy that protects your company cars and trucks from liability and physical damage. Typically your commercial auto insurance coverage will go above and beyond your standard policy. Commercial vehicle insurance is an insurance policy that protects various types of vehicles. They can include company vehicles, commercial trucks, & commercial automobiles.
Vehicles covered under most commercial auto insurance policies
A few common examples of the vehicles covered under a standard commercial vehicle insurance policy may be box trucks, service utility trucks, and work vans. The coverage typically includes coverage for employees operating the vehicles and sometimes the equipment you may find inside the commercial vehicle.
The overall scope of the coverage in most business auto insurance policies can either be narrow or broad. For example it can be written to apply to only one particular specifically described vehicle. The other option can be very broad coverage, the policy can be written to apply to the named insured’s liability exposures arising out of the use of any auto.
For the most part you have 3 options for which vehicles you choose to cover;
- Autos your business owns
- All autos your business owns, hires or leases
- All autos used for the business, including those that your business does not own, hire or lease
The third option is what most businesses typically go with due to it being the only coverage that protects the business from liability when an employee is driving a personal vehicle on business.
You may have heard of this coverage by various names. Some of which might be commercial auto insurance, commercial vehicle insurance, business auto insurance, business truck insurance, commercial car insurance, fleet insurance, or commercial fleet insurance.
Does my company need to carry commercial auto insurance?
There is certain business usage and vehicle types that are excluded from your typical auto insurance policy. For the most part personal auto insurance policies are not meant for business. They are written differently and rated in a different manner. As a business owner particular coverages found in commercial auto insurance policies are what your business needs to be protected.
Your Beacon Business Insurance agent will more than likely ask how the vehicles are used on a work day. Who will be driving the vehicles, and whether or not you lease, own or rent the vehicles. Your employees may be driving their own cars for business purposes. These questions will help your agent determine the type of coverage your business needs.
What’s covered under a commercial auto insurance policy?
Much like your personal auto insurance policy, commercial auto insurance will provide similar coverage such as liability, comprehensive, collision, medical payments, and uninsured motorist coverage. Although, there are quite a lot of differences between your standard policy and the auto insurance policy you need to carry for your business.
The limits can be completely different than your standard coverage. You’re protecting a lot more and within a greater timeframe. There is added risk to running a business and having added insurance falls right into place with protecting your company. Eligibility can certainly differ to your standard policy. In addition, the definitions, coverages, and exclusions can all be different than a typical auto insurance policy.
Does my personal auto insurance policy cover me for business use?
Your personal auto insurance policy can cover you for some business use. Your employees personal auto insurance policies can also cover them for some business use.
However, if your personal vehicle is use “primarily” for business use, you more than likely will not be covered. It will also not provide coverage if the vehicle is owned by a business. A personal auto insurance policy may not provide enough coverage to protect your business.
Coverage in commercial auto insurance policies
- Bodily injury liability coverage
- Property damage liability coverage
- Combined single limit (CSL)
- Medical payments, no-fault or personal injury coverage
- Uninsured motorist coverage
- Comprehensive physical damage coverage
- Collision coverage
If you’re in California and would like to look into getting a great commercial auto insurance rate, give us a call. The agents at Beacon Business Insurance specialize in commercial auto insurance and getting clients amazing rates. Give us a call today at 916 273 8391.