What is commercial auto insurance?
Commercial auto insurance is a type of insurance policy designed to cover vehicles used for business purposes. It provides financial protection in case of accidents, theft, damage, or liability claims involving business-owned or leased vehicles.
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Key Coverages of Commercial Auto Insurance:
- Liability Coverage – This covers bodily injury and property damage if your business vehicle is involved in an accident where you're at fault.
- Collision Coverage – Pays for damage to your business vehicle resulting from a collision, regardless of fault.
- Comprehensive Coverage – Covers non-collision-related damages, such as theft, vandalism, fire, or natural disasters.
- Medical Payments (MedPay) or Personal Injury Protection (PIP) – Covers medical expenses for you and your passengers, regardless of fault.
- Uninsured/Underinsured Motorist Coverage – Protects your business if an uninsured or underinsured driver causes an accident involving your commercial vehicle.
- Hired and Non-Owned Auto Coverage – Covers vehicles your business rents or employees’ personal cars used for work purposes.
- Cargo Insurance (for businesses transporting goods) – Protects the cargo being transported in case of theft or damage.
Who Needs Commercial Auto Insurance?
- Businesses that own vehicles used for company operations.
- Contractors, delivery services, trucking businesses, and rideshare drivers.
- Employees who drive personal vehicles for work-related tasks (beyond commuting).
- Businesses using rental or leased vehicles.
Why Is It Important?
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Commercial auto insurance helps protect businesses from financial loss due to accidents, lawsuits, or vehicle damages. It’s often required by law, especially for businesses operating large or specialized vehicles.
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