Good commercial auto insurance is specially engineered for vehicles used in the operation of a business. It helps to protect the policyholder from liability issues and from costly repair bills should a commercial vehicle be in an accident, not to mention other protections as well.
Who It Helps
Commercial car insurance can be engineered for all kinds of businesses that use vehicles in any way. Not only is it mandated legally, it is necessary to ensure that business owners avoid unnecessary legal, medical, or repair expenses. All sizes and types of business can make great use of this type of coverage.
How it Functions
The business auto policy is similar to the personal auto policy in that the company will need to first determine what kinds and levels of coverage they need. Once this is done, the business then purchases the policy of choice. The insurance company will give the company a contract to sign to then initiate the policy coverage. The policyholder then simply pays the agreed-upon premiums consistently and on time until the time arrives in which a claim must be filed. This is accomplished in accordance with the policy details from the insurance provider. The insurance company will then be in touch with the insured to help on how to proceed with obtaining needed compensation for covered losses.
Types of Coverage
• Liability Coverage
This is coverage that adheres to each state’s laws regarding the amounts of property and medical coverage that should be bought for basic liability protection. This is what will provide at least a good portion of whatever compensation is deemed necessary to provide to individuals who have some kind of legitimate property loss or who are hurt due to one of your company vehicles.
• Collision Coverage
Collision coverage is optional but important coverage that pays for damages to the policyholder’s vehicle utilized during work.
• Comprehensive Coverage
Comprehensive coverage provides compensation for damages that result from such things as weather, fire, theft or vandalism, (anything other than collisions essentially).
• Medical Coverage
In this case, a business owner can opt for greater amounts for total medical coverage than what is provided (and mandated) by basic liability. This is particularly apropos for companies utilizing larger commercial vehicles.
• Uninsured/Underinsured Motorist
Being involved in an accident in which the other party has little-to-no insurance can result in the business being financially responsible for his or her own damages, regardless of fault. This coverage will handle the financial demands of what the other party will not, (not to exceed the policy limits of the coverage).
• Personal Injury
Obtaining personal injury coverage will provide proper medical coverage to employees who operate business work vehicles should there be an accident.
Benefits of Commercial Auto Insurance
Commercial vehicle insurance is designed very specifically for vehicles used in business and it provides terrific protection from liability issues that can destroy a business. It also provides company protection from repair costs after a company vehicle is damaged. A good move would be to take advantage of the best policy possible for a business’s budget.