What Is Commercial Auto Insurance?

Commercial auto insurance is a specialized type of insurance designed to cover vehicles used for business purposes. It can provide essential protection against various risks associated with operating vehicles in a business context.

Liability Coverage

One of the key aspects of commercial auto insurance is liability coverage. This type of coverage is crucial because it helps protect your company from the financial repercussions of accidents where your driver is at fault.

Liability coverage typically includes bodily injury liability, which can cover medical expenses and legal fees if someone is injured in an accident, and property damage liability, which can cover repairing or replacing damaged property. Liability insurance pays third-party damages only up to the policy’s limits. Your agent can help determine the appropriate coverage for your company’s situation.

Most states require commercial auto liability coverage. If your business uses certain vehicles—like semis—you are also subject to federal commercial auto liability requirements.

Additional Coverage Options

Commercial auto insurance policies can be customized to fit the specific needs of your business. For example, you might need cargo coverage if your business is transporting goods. You may need non-owned auto liability coverage if your employees use their personal vehicles for business purposes. This flexibility ensures you can tailor your policy to provide the most comprehensive protection for your business operations.

In addition to liability coverage, commercial auto insurance policies often offer a range of additional coverage options. These can include collision coverage, which can pay for damage to your vehicle resulting from a collision with another car or object, and comprehensive coverage, which can cover damage from non-collision-related incidents such as theft, vandalism or natural disasters.

Uninsured and underinsured motorist coverage can protect your business if one of your vehicles is involved in an accident with an at-fault driver who has no insurance or insufficient insurance to cover the damages. Your agent may recommend other policies and endorsements.

Contact Us

Contact Viva Insurance Services for a commercial auto insurance quote.

This blog is intended for informational and educational use only. It is not exhaustive and should not be construed as legal advice. Please contact your insurance professional for further information.