Commercial auto insurance is a type of insurance policy that provides coverage for vehicles used for business purposes. This insurance is designed to protect businesses from financial losses resulting from accidents, theft, or damage to company-owned vehicles or vehicles used for business operations. Commercial auto insurance typically covers liability for bodily injury or property damage caused by the insured vehicle, as well as physical damage to the vehicle itself. It may also include coverage for medical payments, uninsured motorist protection, and other optional coverages tailored to the specific needs of the business. Businesses that own or use vehicles for commercial purposes, such as delivery services, contractors, and transportation companies, often purchase commercial auto insurance to protect their assets and mitigate risks associated with operating vehicles for business activities.
Commercial auto insurance provides coverage for vehicles used for business purposes. It typically covers the following:
- Liability coverage: This covers bodily injury and property damage that you or your employees may cause to others while driving a company vehicle.
- Collision coverage: This covers damage to your vehicle in the event of a collision with another vehicle or object.
- Comprehensive coverage: This covers damage to your vehicle from non-collision incidents such as theft, vandalism, fire, or natural disasters.
- Medical payments coverage: This covers medical expenses for you and your passengers in the event of an accident, regardless of fault.
- Uninsured/underinsured motorist coverage: This covers you if you are involved in an accident with a driver who does not have insurance or has insufficient coverage.
Commercial auto insurance is essential for businesses that use vehicles for their operations to protect against financial losses resulting from accidents or other unforeseen events.