Commercial auto insurance is designed to provide liability and physical damage coverage for certain situations that aren’t covered by personal auto insurance. This type of insurance typically applies to commercial businesses and their employees. People and businesses that choose this insurance will receive coverage for a wide range of different vehicles used in the operation of a business.
There is a wide range of different coverage types, which provides the business or drivers with the ability to tailor their plans to the needs of their business. If anything happens to a vehicle covered by the insurance, such as damage from inclement weather or an accident, a claim can be made with the insurance provider, which will cover most, if not all, of the damages.
If the driver or operator of the vehicle is responsible for the damages to another vehicle, then that person can file a claim and your insurance will cover a specific amount of the damages. There are many coverage types available with commercial insurance, with liability, collision, medical payments and comprehensive being some of the most common. Liability coverage can include bodily injury liability and property damage liability. Comprehensive physical damage coverage will pay for any damage incurred because of a fire, theft, a flood or vandalism.
Many business owners will choose to purchase commercial umbrella coverage, which covers very large liability claims. This coverage comes in $1 million increments and helps to cover the cost of lawsuits. There are many benefits with this insurance type. For instance, it gives your company the peace of mind that you and all of your employees are covered in the event of an accident and will keep your company from having to pay the full costs out of your own pocket.