Commercial auto insurance is a crucial insurance policy for businesses that use vehicles as part of their operations. This type of insurance provides coverage for various aspects related to business-owned vehicles and their use. Here’s an overview of what commercial auto insurance typically covers:

Bodily Injury Liability

This coverage provides protection for the policyholder in case they are held liable for injuries caused to another person while operating a company-owned vehicle. It covers medical expenses, legal fees, and damages related to bodily injuries.

Property Damage

Property damage liability coverage is essential for covering the costs of property damage caused by a company-owned vehicle. This can include damage to other vehicles, structures, or objects.

Medical Payments or Personal Injury Protection (PIP)

Commercial auto insurance often includes coverage for medical payments or personal injury protection, which provides benefits for medical expenses incurred by the driver and passengers of the policyholder’s car in the event of an accident, regardless of fault.

Hired/Non-owned Auto Liability

This coverage is important if your business rents or leases vehicles or if your employees use their own vehicles for company purposes. It provides insurance coverage for certain liabilities arising from the use of rented or leased vehicles (hired) or non-owned vehicles (when employees use their own vehicles for company business). This coverage can usually be added to a business auto policy or, in some cases, to a general liability policy.

Use of Personal Vehicles

It’s important to note that personal auto insurance policies typically do not cover damage to privately owned vehicles when they are used for business purposes. This includes scenarios like home cosmetics sales, jewelry sales, or pizza delivery. Commercial auto insurance is necessary to ensure coverage for such situations.

Having the appropriate commercial auto insurance is essential for protecting your business from potential liabilities and financial losses associated with vehicle-related accidents and incidents. It’s crucial to tailor your coverage to the specific needs of your business and the nature of vehicle use in your operations. To determine the right commercial auto insurance policy for your business, consult with Paul Branham Agency.