Commercial Auto Insurance

Are you a business owner? If so, does your company make use of vehicles in its daily operations? You’ll need commercial auto insurance for any vehicle used for business purposes. If employees drive their own personal cars, then insurance isn’t the business owners responsibility. But if your company owns commercial vehicles, then the company is responsible for insurance.

The type of insurance needed for a commercial vehicle depends on the size and type of vehicle used. How often the vehicle is used matters as well. So you should learn about the legal requirements for your area. Failing to comply with local laws can hurt your business. If you have an auto loan, then your lender may have additional insurance requirements. Make sure to comply not only with state laws, but with the requirements set by your lender.

If nothing else, you’ll probably need liability coverage. Liability coverage helps you and your company take financial responsibility for damages that you or employees cause on the road. And your auto lender will want to protect the value of the vehicle. So that means you’ll likely need comprehensive or collision insurance. Collision benefits are paid when a covered commercial vehicle is in an accident. And comprehensive benefits are paid for a variety of incidents, including theft.

Liability, collision, and comprehensive coverage are the most basic forms of commercial auto insurance. But you often can obtain coverage for roadside assistance, towing benefits and more. If you’re not able to get the very best coverage, at least get liability. Your company may not have the funds to pay for an expensive policy, so there’s nothing wrong with starting off simple.