Commercial Auto
Risk Management
Our team of experts is dedicated to providing you with a comprehensive assessment of your risks and quote comparison from our broad network of insurers while ensuring that you have the essential knowledge to make informed decisions on commercial auto insurance.
The Basics of Commercial Auto Insurance
Businesses that use vehicles to deliver goods or services, transport employees, or conduct business require commercial auto insurance coverage. Commercial auto insurance can help protect your business from financial loss in the event of an accident involving a company vehicle. Commercial auto insurance typically covers a wider range of vehicles, such as delivery trucks or company cars, and offers higher coverage limits than personal auto. It is important to understand commercial auto coverage is not included in a Business Owners Policy (BOP) and must be purchased separately.
Whether you have a fleet of trucks or a single company car, it is essential to have adequate commercial auto insurance coverage limits when you use company vehicles for business purposes. Commercial auto insurance can protect against various risks, including third-party liability, physical damage to the vehicle, and medical expenses. Additional coverages, such as uninsured motorist coverage and roadside assistance, can also be added to your policy.
Key Coverage Provisions
Commercial auto insurance is designed to cover vehicles used for business purposes. Like personal auto insurance, it protects against property damage, bodily injury, and liability in the event of an accident. Commercial auto insurance also offers additional coverage options that are tailored to the needs of businesses. Some of the most common coverages you can add to your commercial auto insurance policy include:
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Bodily injury liability coverage protects your business if you're responsible for an accident that injures someone. It can also help cover legal expenses if you're sued over an accident.
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Property damage liability coverage provides protection for damage you cause to another person's property while driving your vehicle.
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Collision coverage protects against damage to your vehicle from a collision with another object.
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Comprehensive coverage helps pay for events such as theft, vandalism, fire, or weather damage to your vehicle.
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Uninsured/underinsured motorist coverage helps pay for accidents caused by another motorist who does not have insurance or doesn't have adequate insurance coverage limits to cover the damages they caused.
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Medical payments coverage can help pay for medical expenses incurred by you and your passengers after an accident, regardless of who is at fault.
What’s Typically Not Covered?
Commercial auto insurance can help financially protect your business from a variety of risks, although there are some exposures that these policies typically exclude. It's essential to understand what is covered and is not covered by your policy to ensure your business and its vehicles are properly protected. A typical commercial auto insurance policy has the following exclusions:
Non-commercial use: Any costs related to damage to a person's property (including damage to another person's vehicle) while your commercial vehicle is being used for personal reasons won't be covered by commercial auto insurance.
Intentional Acts: If you or one of your employees intentionally causes damage or injury while operating a company vehicle, your commercial auto policy will not provide coverage.
Cargo: If you are transporting cargo in your commercial vehicle, most policies will not cover any damage that occurs to the cargo. You can purchase inland marine insurance to cover damages to property while in transit.
Damage that results from illegal activities: If you or an employee are in an accident while driving under the influence, your commercial auto insurance policy will not cover any damages caused.
On-the-job injuries: If an employee injury occurs while performing duties as part of your job (e.g., if you're a delivery driver and hurt yourself carrying packages), then it's not covered by commercial auto insurance. Instead, worker’s compensation will be responsible for paying for any medical expenses related to the injury and lost wages when you can't work.
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