If your business operations have a regular involvement of the vehicles and you own all those vehicles. A mishap can happen at any time. You need proper protection to tackle all those mishaps and protect yourself from losses. That’s where insurance for commercial vehicles comes in. It covers your vehicle repair and protects your employees who travel through these vehicles frequently.

What is commercial auto insurance?

Commercial auto insurance is prepared to cater to your business's needs and helps protect your company's vehicle fleet. These vehicles are responsible for running your business successfully and efficiently. These coverages ensure that your business does not face costly risks and is vulnerable to losses. Commercial auto insurance can help in various scenarios. Some of them are listed below:

  • Commercial auto insurance can help cover lost wages and medical expenses if your employees are involved in road accidents and get injured while in your business vehicle.
  • It covers replacing vehicles and includes rented vehicles that your business uses regularly.
  • Commercial auto insurance covers new vehicles and provides facilities to cover your old ones.

How does commercial car insurance work?

Your car insurance will not cover the commercial vehicle you use in your business processes. You need to pay for the damages from your pocket if and when any accidents happen. To protect any vehicle used in commercial activities, you need insurance for those vehicles under Commercial car insurance. These commercial vehicles include fleets, tractors, and trucks.

Commercial car and personal auto insurance works similarly and offers the same types of coverage. Still, it significantly differs from personal auto insurance as it includes higher liability limits. It also covers your employees and all the hired vehicles. The fundamental difference between commercial and personal car insurance is the purpose of the vehicle. Most commercial vehicles are used for business purposes, while personal cars are used for personal transportation.

Both businesses and employees get protection with commercial car insurance policies: These commercial car insurance policies are available in many following industries:

  • Self-employment
  • Car dealerships or rental companies
  • Public and non-profit groups
  • Wholesaling, distribution, and manufacturing
  • Agriculture and food industry
  • Delivery companies
  • Real estate
  • Car hire companies (limo, taxi, etc.)
  • Construction, landscaping, and contractors
  • Trucking
  • Catering services

What kind of coverage is available in commercial car insurance?

Commercial car insurance provides many types of coverage, like personal auto insurance.

Collision coverage: This coverage provides the facility of paying the cost of repairing or replacing a vehicle after an accident.

Comprehensive Protection: It covers the damages caused by weather, theft, and vandalism. It does not cover accidental damages.

Liability insurance: It is one of the most critical coverages of any insurance as it covers the damages or injuries caused in accidents to other people due to the driver of a commercial vehicle.

Medical Liability Coverage: It covers the medical bill payment for injured passengers or drivers injured in a company vehicle.

Uninsured Or Underinsured Coverage: Vehicle insurance for business protects if your current insurance policy does not have sufficient money to pay for the damages caused by another driver to your vehicle or employee and doesn’t have enough insurance to cover damages.