Commercial car insurance is specifically engineered for vehicles that are used in the operation of a business. It provides financial protection to the policyholder from liability issues and from costly repair bills should a commercial vehicle sustain damage from an accident or other event that is shown to be covered in the policy details.
Who needs it?
Anyone who has worked to build a business from nothing to a success certainly understands just how fast one mishap can ruin all the results of all their proverbial blood, sweat and tears. This is what makes good commercial car insurance so important to the success of a business. However, many business owners with typical business insurance coverage do not understand that they most likely have a huge vulnerability in their coverage in not having proper commercial auto insurance coverage. It can provide you, as the business owner, and your workers with a measure of safety that can help you quickly move beyond such common events as auto accidents with one of your commercial vehicles, medical expenses due to injuries and any consequential property damage, not to mention protection from incidents of theft, vandalism, and more.
Many business owners carry no commercial auto policies simply because they are ignorant of the fact that they likely would need one. Contrary to common wisdom, there is no single type of vehicle that will need to be covered by a commercial policy. Any kind of a vehicle that is utilized for business purposes should likely be included in a policy. This includes vans, trucks, sports utility vehicles, limos, and even personal vehicles if used to conduct business of any kind. Certainly any vehicles that are modified to carry work equipment are prime candidates too. The thing is this: If an accident should occur, those involved can initiate legal action and potentially put both your personal and business assets in jeopardy. Good commercial auto insurance will help you to fully protect your assets from such threats and perils.
How it works
A commercial auto policy is not too different from a personal car insurance policy in its format. As in normal car insurance, the company seeking coverage will first need to choose what coverage types they need and the subsequent levels of coverage to purchase. Once this is known, the business then can purchase the policy that fits its needs and budget. Coverage begins when the policy contract is signed. The policyholder then is responsible to simply pay the premiums on time until a claim needs to be filed. This is accomplished in accordance with the procedures outlined in the policy details.
Types of coverage
Liability insurance is the kind of coverage that protects commercial drivers (and passengers) who are part of an accident with another automobile or pedestrian. This type of plan provides payment for medical costs incurred from treating injuries that are the consequence of these kinds of accidents. Collision insurance is what steps in to help in the repair of the vehicle chassis, body and mechanical components of commercial vehicles involved in accidents. Comprehensive coverage is what provides financial help for damage resulting from extreme weather, fire, theft, vandalism and other events not related to accidents with other vehicles.