Running a business that involves using a car can be, but having to deal with commercial auto insurance can be more difficult, especially if you don’t know the right person to choose. As a business owner, one of the most challenging decisions you will make is choosing the right insurance policy that will protect your business assets as well as your employees from unexpected financial loss and the threat of lawsuits. The first step involved in choosing the right type of auto insurance is understanding the different types of commercial insurance available.
Basically, commercial auto insurance divides vehicles into two broad categories
- Private passenger vehicles such as sedans, vans, SUVs, and minivans
- Trucks, trailers, and tractors, including pickups, dump trucks, dry goods, reefers, car haulers, tanks, and more.
Commercial auto insurance is mainly divided into two categories: ordinary auto insurance and professional auto insurance.
General commercial auto insurance includes six types of coverage
- fully cover: This type of insurance comes into effect when the vehicle is vandalized or suffers damage caused by something other than the vehicle, such as animals or fallen trees.
- collision insurance: This type of insurance covers vehicle damage caused when the vehicle is struck by another vehicle or object, or when the vehicle overturns. Vehicles with loans or leases are very much in need of this type of insurance.
- Uninsured/Uninsured Drivers: This type of insurance covers damages and medical expenses from accidents caused by uninsured or underinsured drivers.
- Liability Insurance: This type of insurance is generally required in most states. It kicks in when you cause an accident. Not only will it protect you from harm, but it will also provide you with a legal defense in the event of a lawsuit against you. “Property damage liability” includes damage to the other party’s vehicle or property, while “personal injury liability” includes injury or death resulting from a car accident.
- Medical Payment Scope: This type of insurance covers medical expenses incurred by anyone in the car as a result of a car accident, regardless of who was at fault for the accident.
- Personal injury protection: This type of insurance covers injury-related expenses incurred by you or your employees in the event of an accident, regardless of whose fault the accident was.
Professional commercial auto insurance is available for businesses that require a professional vehicle for their day-to-day activities. Some common types of custom insurance designed to protect specialty vehicles include food truck insurance, landscaping vehicle insurance, and trade-related vehicle insurance.
Finally, no matter the type of business you run or the type of car you use, a business insurance policy can be customized to meet your specific needs.