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Commercial Auto Insurance

Commercial Auto Insurance: What you Need to Know

Commercial auto insurance offers protection for vehicles that have been designated for business use. The coverage can be for both liability and property damage. It’s important for you to have this coverage if you have vehicles dedicated for business use since such autos can’t be covered under any other kind of insurance. The policy is needed to cover vans, trucks, and cars used in conducting any business.

This insurance covers various situations. The terms and options will vary from one insurer to the other, so it’s important for you to understand what your policy contains. A typical coverage includes:

Liability for property damage

Responsibility for injuring others

Personal injury to you, the employed drivers, and passengers as well as lost wages and medical expenses

Comprehensive coverage for damages caused by collision

Collision coverage for expenses associated with the accident, despite the person who was at fault

Unloading and loading liability

Underinsured and uninsured motorist coverage

Substitution transportation as your vehicle gets repaired

Medical payments for the treatment, hospitalization, or funeral expenses

This kind of insurance works by offering coverage for vehicles used for business purposes, including the commercial drivers. You can get the coverage for a fleet of vehicles or a single vehicle. The commercial auto policy can be categorized into various types namely:

Liability compensation for bodily injury

Liability compensation for property damage

Compensation for uninsured motorists

Personal injury or medical payments cover

Comprehensive physical damage compensation

Collision insurance cover

All these types allow a business owner to adjust to policy coverage depending on the business circumstances and how the vehicles are used. If an incident like damage of a commercial vehicle occurs because of the weather, accident, or any other incident, an entrepreneur can file a claim and get the compensation that will cover the necessary repairs. If your vehicle injures another person or property and your driver was at fault, they can file a claim and get compensated up to your policy’s limit.

The coverage is beneficial since it protects your business from property damage, liability claims, and injury costs that may be acquired while using the commercial vehicles.