Commercial Auto Insurance
Protection for your employees on the road
Why You Need Commercial Auto Insurance
Commercial auto insurance is protection from liability and physical damage for any vehicles owned by or used for business. A personal auto insurance policy does not cover individuals when operating a vehicle for work-related purposes, as commercial vehicles are typically at a higher risk for an accident than personal vehicles. While large trucks and semis typically come to mind when thinking about commercial auto insurance, it applies even to employees who are running errands for their business.
What Types of Businesses Need Commercial Auto Coverage?
- Any business that owns a vehicle or vehicles.
- Any business that has employees use company cars
- Trucking + shipping companies
- Businesses that use delivery drivers — including new delivery apps like Grubhub, Doordash, and UberEats
- Any business that transports clients such as schools, van-pools or bus companies.
What Kinds Of Coverage Are Available?
Coverage will vary based on your business’ specific needs, but the following are typically included in a commercial auto insurance policy:
Liability Coverage
Covers damage to you or another individual’s vehicle and any legal costs related to an accident.
Scenario
You’re taking your company car on a business trip driving to a client, and get into a bad accident. Another car is totaled and you’re at fault. We’ll pay for the other driver’s car repairs and injuries, including legal fees from any potential lawsuit, up to your policy limits. There is no deductible for liability insurance.
Medical Payments Coverage
Covers the cost of treating injuries, rehabilitation, and, if applicable, lost wages and funeral expenses for you and your passengers as a result of an accident, no matter who is at fault.
Scenario
You’re driving someone else from the office to a client meeting and get into an accident. The passenger in your vehicle hits their head on the dashboard in the and needs to go to the hospital. Medical Payments would cover their medical expenses.
Uninsured/Underinsured Motorists Coverage (UI/UIM)
Coverage in the event that another driver involved in an accident does not have insurance or doesn’t have sufficient coverage to pay your medical bills. Nearly 14% of all drivers in the US are uninsured, so you’re taking your chances if you don’t add UM/UIM coverage to your commercial auto policy.
Scenario
You’re involved in an accident while on the job and one of the other drivers doesn’t have insurance, legal or not. Uninsured motorists coverage would cover your medical bills and damage to your car, up to your policy’s limits.
Comprehensive Coverage
Pays to repair or replace your car if it’s damaged from an incident out of your control, such as fire, vandalism, theft, natural disasters, or collisions with animals like deer.
Scenario
During a severe thunderstorm, a tree falls on your car that’s parked outside your home. We’ll cover the damage to your car, up to your deductible.
Some Insurance Companies offer discounts on the Commercial Auto Coverage if they also insure other lines of business for your Company.
Depending the number of employees driving, and the purpose for commercial vehicle use, you may be able to receive discounted commercial auto insurance. Additionally, there are safe-driving programs available that employees can participate in to help reduce the overall cost of your policy.