Risk of damage to property or personal injuries tends to be higher with commercial vehicles simply because such automobiles are on the road longer and travel more miles as compared to a personal automobile. Of course, the law too mandates that all vehicles—personal or commercial—must be covered under an auto insurance policy.
Choosing the right business commercial auto insurance policy will secure your valuable business asset and protect your firm from liability claims that may arise due to damage to property, injury to a person, damage due to other reasons, as well as any injury, damage, or liability arising out of a mishap involving an uninsured or underinsured vehicle.
Despite improvements in safety technologies, the risk of personal injury or damage to property remains high in auto accidents. The business commercial auto insurance policy will cover liability claims where a business vehicle accident results in damage to or destruction of property owned by a third person.
This will cover the cost of repairing the other vehicle where your driver is determined to be at fault for the accident. The policy will also cover claims payable to others who have suffered any personal injury in a mishap involving your business vehicle or an auto that is registered in the name of your business.
Apart from covering liability owed to others, the business auto policy will also provide for the cost of treating injuries suffered by the driver/employee assigned to drive your business vehicle. Coverage includes reasonable medical expenses and, if necessary, funeral costs of the persons covered under the policy.
Finally, the policy will also pay for the cost of repairing your damaged vehicle. This coverage includes mishaps involving other vehicles as well as incidents like a vehicle rollover where there is no specific individual or party at fault.
You can also opt for a comprehensive policy that will also cover repair costs and liability claims in accidents or mishaps involving other objects. This option is particularly useful if you seek complete protection against the risk of auto-related claims or expenses. Such a plan will include protection even in those cases where you are required to spend money out of your pocket simply because the at-fault party did not buy or purchased very little auto insurance cover.
Unlike personal auto insurance, commercial insurance does not have sub-limits for different coverage options. So, a $1 million coverage will mean your business vehicles are protected from all types of covered claims up to the limit of $1 million. This negates the risk of your business ending up with a hefty claim or repair bill due to the sub-limit for personal injury or property damage being reached.
While the minimum insurance requirements for personal and commercial auto insurance are the same, it is better to err on the side of caution when assessing your insurance coverage requirements.
For starters, a high claim that exceeds your coverage limit can impact your firm’s financial stability. Secondly, you will have to incur additional expenses to repair your vehicle and make it roadworthy again. Thirdly, absence of a functional vehicle will impair productivity, which will lead to additional financial complications.
Instead of trying to save money by cutting coverage, call us to learn more about our commercial auto insurance services. Our comprehensive bouquet of services will help you secure all commercial insurance protection under a single roof.