Whether you have one vehicle that you use for business purposes, or you have a whole fleet of vehicles, it’s wise to invest in a commercial auto insurance policy. In most states, this type of coverage is required by state law, and many states establish specific minimum coverages that you need to purchase based on how the vehicles are used.
For example, a vehicle that is used to transport passengers may need different minimum coverage than a vehicle used to transport parts for a plumbing or other trade business. In most cases, the state’s minimum requirements include liability coverage that pays for damage you or your employees cause to others. This may include the other party’s vehicle repairs, loss of personal property, related medical bills and more.
While the state’s minimum coverage requirements may not fully cover all losses you may face if your commercial vehicle is in an accident, stolen or damaged in some other way, there are optional coverages you may purchase as a business owner. For example, many invest in a comprehensive commercial auto insurance policy. This type of coverage will pay for any damages to your vehicle as well as damages you or your employees cause to another party. Additional optional coverage may be purchased to provide a rental car if your commercial vehicle is out of commission for repairs. The financial impact of a vehicle issue can be significant, and the right coverage can drastically reduce this impact on your business.
The cost for a commercial auto policy can vary substantially based on various factors. For example, the number and type of vehicles that are being insured, where your business is located and who will be driving the vehicles. By purchasing the perfect commercial policy for your needs, you can rest assured that you comply with state requirements for a minimum amount of coverage and that you and your business are fully protected from financial loss.