What Does Commercial Auto Insurance Cover?

If your company has vehicles, then protecting those vehicles is just as important as protecting your company.  Commercial auto insurance provides coverage that a standard personal auto insurance policy does not provide. Commercial auto insurance protects a vehicle owned by the company, employees of the company using the vehicle, and any goods or equipment being delivered or carried with the vehicle.

Here are some types of commercial auto insurance and what they generally cover: 

1. Liability Insurance 

Accidents happen. If the vehicle owned by your business caused damage to another vehicle, property, or injury to another person, liability insurance will help to pay for the other party’s repair bills, medical bills, and any legal fees associated with the accident, which prevents liability lawsuits to your company that could become very costly. 

2. Physical Damage Coverage 

Business vehicles are expensive and, most importantly, valuable to the operation of your company.  Physical Damage Coverage will help repair or replace the company vehicle if it experiences damage in an accident, collision, along with damage caused by fire, theft, or vandalism. This coverage will help minimize the unexpected long downtime for your business caused by losses to your business vehicles. 

3. Medical Payments Coverage 

If your employees or passengers are injured in an accident while using a vehicle owned by your business, medical payments will take care of your employees or passengers’ hospital bills, treatment bills, and ambulance bills, no matter who is found at-fault.

4. Uninsured / Underinsured Motorist Coverage

Not every driver on the road has sufficient insurance coverage. If your business vehicle gets into an accident with someone without insurance or inadequate coverage, you have peace of mind knowing that this coverage will take away the burden of repairs or medical costs.

5. Comprehensive Coverage

Vehicles can be infringed upon in several ways beyond just collisions. Vehicles can be damaged as a result of theft, fire, natural disasters, falling objects or even animals. Comprehensive coverage helps provide protection from risks that are non-collision related. You can be confident that your vehicles are safe regardless of the situation.

6. Cargo or Equipment Coverage (Optional)

If your business incurs tools, equipment or goods and transports them, you can add coverage in the event they are damaged or stolen while in transit. This coverage is extremely important for contractors, delivery companies or service businesses.

In conclusion

Commercial auto insurance is more than just protecting a vehicle; it’s about protecting your business from risk while on the road. Whether you operate a single truck or a fleet of vehicles, with the right policy, you can rest assured and return to work. At A-kan, we can help you get best insurance at the right price and a variety of insurance plans. Get in touch with us today.