What Commercial Auto Insurance Covers

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Commercial auto insurance is designed to cover a vehicle that is used for business purposes, either by the business owner or by an employee. For example, one needs a commercial auto insurance policy if they drive for cash, log high miles for work, or transport work items in a vehicle. A commercial auto insurance policy generally provides four different types of insurance coverage.

Liability Coverage

First, a commercial auto insurance policy provides one with liability coverage. Liability coverage includes both property damage liability as well as bodily injury. So, for example, if you get into an accident and you damage a building, your insurance will cover it. Or you get into an accident, and someone is hurt, your insurance will cover their medical bills and other related expenses. In addition, if a person who is injured sues you, or if a person whose property you damage sues your business, your liability coverage will pay for the legal fees.

Medical Payment

Next, your commercial auto insurance coverage will offer you medical payments. What this means is that the driver and passengers in your business vehicle will have all of their medical expenses paid for in the event of an accident, no matter who is found to be at fault for the accident.

Uninsured Motorist Coverage

Commercial auto insurance almost always includes uninsured motorist coverage. If your business vehicle is hit by an uninsured driver or is involved in a hit and run, you want to have the right coverage. With uninsured motorist coverage, your business vehicle and medical bills will be taken care of, allowing you to keep your business running.

Comprehensive and Collision Coverage

It is common for commercial auto insurance policies to include both comprehensive and collision coverage. If you can't afford to replace your business vehicle if it were to be damaged, you will want to carry comprehensive and collision coverage. Like with a personal vehicle, comprehensive and collision coverage will pay to fix your vehicle if it is damaged by another car or object or damaged due to flood, fire, theft, or vandalism.

Commercial auto insurance is very similar to personal auto insurance. It provides you with liability coverage, medical payments, uninsured motorist coverage, and both comprehensive and collision coverage. The difference is that your policy covers your business and your employees, whereas a personal insurance policy is only designed to cover an individual and their family members. Therefore, getting a commercial auto insurance policy is important if you are using your vehicle for business.