What Is Commercial Auto Insurance?

The commercial policy functions similarly to a conventional policy. A commercial auto policy covers all vehicles driven for business purposes. One or multiple cars covered under a policy are covered if there is any damage that happens when an accident occurs. Policies can also be adjusted as the needs of the company evolve.

Who Is This Insurance For?

The commercial auto policy can be adapted to the needs of the company. If the vehicle is used to conduct business on any level, a commercial auto policy is appropriate. If the industry or business classification requires higher liability limits, a commercial auto policy is recommended. Factoring in considerations like whether or not there will be a significant amount of hauling required.

How Does it Work?

Auto insurance claims involving a personal vehicle being used for commercial purposes can be rejected. This can put the business owner on the hook and require that they have to cover out-of-pocket expenses independently. Coverage components like bodily injury, property damage, comprehensive, collision, medical, personal injury, and uninsured motorist minimize the number of risks a driver could be exposed to in everyday business.

Different Types of Coverage

Depending on the type of business and the distance typically traveled, a commercial auto insurance policy can cover any damage stemming from a loss. Comprehensive coverage designed specifically for commercial entities protects against any liability. Any vehicle that is ever used for any commercial purpose should consider a policy.