When Do You Need a Commercial Auto Policy?

Do you really need commercial auto insurance? Well, chances are, you do. Picking a commercial auto policy can be confusing, but it’s necessary. Before picking the best policy for your business, check out our rundown of a policy’s benefits below.
line of white commercial vans

Why Do I Need Commercial Auto Insurance?
If your business uses any cars, it needs to protect itself and the vehicles. Specifically, it needs to protect any vehicles used to conduct business task. In fact, if you use a vehicle in any tasks related to your business—other than commuting—a commercial auto insurance policy might be necessary.

So, what does this entail? If you’re using a vehicle to transport goods, people or service equipment, you’ll need financial protection. Similarly, if you use vehicles for any of the below tasks, you’ll need coverage:

Hauling tools and equipment
Towing a trailer
Shuttling clients or customers
On-site transportation

What Does a Commercial Auto Insurance Policy Cover?
As a business owner, you’ll face a number of financial scenarios. Fortunately, your commercial policy will usually protect you from physical and legal dangers. The average policy covers the following:

Collision damages
Personal injuries
Extended medical payments
Property damage

Liability protection

Of course, nobody knows when an accident will strike. In most cases, however, commercial auto accidents damage a business’s property. They can even injure those who’re driving, the vehicle’s passengers and others on the road.

How Does the Policy Work?
If you’ve experienced an incident, you can file an insurance claim. Then, you can receive compensation to cover the cost of repairs. Or, if you or one of your drivers is at-fault for any damages or injuries, the afflicted party can file an insurance claim.

In the second scenario, your auto liability insurance can cover the claim. If your policy’s limit is high enough, it’ll absorb any costs. By investing in a commercial auto policy, a business owner can have protection from extra damage.

It’s a good idea to discuss policy options with your provider. Every business is different. For this reason, every policy is different. Get a custom-tailored commercial auto insurance policy today. Make sure your business has protection from accidents, property damage and injury.

No Comments